Top 10 Equity Crowdfunding Sites
Best Equity Crowdfunding Sites For Businesses & Entrepreneurs
Crowdfunding is a new concept and investing in young businesses can be very risky. The main risks of investment-based crowdfunding are: The business you invest in might go bust. Many new businesses fail in the first few years, so you could lose all your money.
Crowdfunding Investors Are Making 10% Per Year And More
With interest rates expected to languish for some considerable time, crowdfunding sounds like a no-brainer. But it's a very different beast to a UK-regulated deposit account, which protects the first £85,000 of your money.
Equity crowdfunding provides a platform for private companies and individual investors to meet. Individuals provide funds for firms seeking capital to grow, in exchange for an equity stake in that company.
Best Crowdfunding Sites
Equity Crowdfunding Explained
Equity crowdfunding is when a company raises funds from a large number of investors (the crowd) in exchange for equity in that company. For the individual investor, this means that when they invest they become shareholders in the company.
Disadvantages
Crowdfunding Can Be Stressful
A crowdfunding campaign is more than just asking for money. It requires marketing, PR, and strategy. It requires being sure that you can deliver whatever you promise to your investors. It also comes with deadlines and the very real chance of failing if you set your goals too high.
If you make less than $100,000 per year, you can only invest $2,000 or 5 percent of your annual income, whichever is greater. If you make between $100,000 and $200,000 a year, the cap becomes up to 10 percent of your income.
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