Crowdinvesting as a capital investment
Crowdinvesting as a capital investment is an exceptionally modern instrument for generating above-average returns. The idea behind it is quite new in its current form and has only existed for about one to two decades. If, however, one throws in the way in earlier times for example ship journeys or also enterprises were financed, then Crowdinvesting could also be quite spoken of as a capital investment.
The background is always that a lot of investors (one crowd) take money into their hands and invest it in a promising project or company. In comparison to other forms of capital investment, considerable advantages can be worked out.
What does Crowdinvesting offer as an investment?
If one takes a look at the common forms of investing money, crowd investing as a capital investment proves to be thoroughly competitive. There are, for example, the classic fixed-term deposits, overnight money and savings accounts as well as life insurance.
All these products have in common that they generate guaranteed interest rates, but these are below the current inflation rate. In other words, it is certain that money will be lost – even if it is usually only about one percent.
Moreover, investing in fixed-term deposits is dead capital that does not work and cannot flow into companies or innovative projects in a targeted manner. Anyone who regards crowdinvesting as a capital investment does something good and changes society at the same time, provided it is a project worth supporting.
What are the options for crowdinvesting as a capital investment?
Of course, crowdinvesting as a capital investment does not necessarily have to flow into companies.
For example, there are also properties that are built and developed in this way. Or it is invested in containers and/or ships. The principle is ultimately similar, because here as there can be easily invested a small amount, which is invested at a fixed interest rate. Likewise the time of the repayment is certain and so it concerns purely formally juridically mostly the granting of a subordinated loan.
Repayment can take place at the end of the term or in the meantime, for example annually or quarterly, so that a wealth of individual structuring possibilities exist.
All offers for Crowdinvesting as capital investment have in common that the intended purpose is exactly designated and often also a folder exists, on the basis which one can inform exactly about the planned project. In this breath also the persons or enterprises are mentioned, which advance the idea and it can be obtained expert opinions.
How does crowdinvesting work as an investment?
If you are interested in crowdinvesting as a capital investment, you still need a platform that offers corresponding projects. The offer is large and some of the platforms are rather general, while others focus on real estate, start-ups from the IT sector or ships.
So there is a suitable offer for everyone and you can often choose from hundreds of different projects. In addition, in most cases the platforms do not incur any costs and the money flows one-to-one to the companies or project operators.
Tips for successful crowdinvesting
Anyone who operates crowd investing as a capital investment should in any case start with smaller sums and distribute them. One should consider mixing with other forms of investment such as equities, ETFs or real estate as well as distributing them to various crowdinvesting projects.
In addition, concrete questions should be asked in the case of a partially incomprehensible project. The way in which these questions are answered makes it possible to assess the seriousness of a project perfectly. Of course, research can also be carried out to find out who is behind Project XY and whether its goals are realistic or not.
The question of whether one would be a potential customer of a company or a customer of a new product can be relevant, but may require some empathy. In this context, it is exciting to take a look at the general conditions in an industry and the developments in recent years.
Example needed? Take a look at the participation in ships.
It is a fact that world trade is continuously increasing and that around 80 percent is handled by ships. In recent years, new environmental regulations have appeared all the time, leading to ships going out of service or being modernised.
In other words, this results in enormous development potential, which should also be available in the long term. As always, when it comes to investing in companies, no profit is guaranteed: Crowdinvesting as a capital investment of course also involves risks and should not be done with money that should not be lost under any circumstances.
The difference between crowdfunding and crowdinvesting
In media reporting, there is often no difference between crowdfunding, crowdlending and crowdinvesting as capital investments. However, if you take a closer look, you will quickly notice that these are different concepts.
Crowdfunding refers both to companies that have not yet been founded and to social projects or artistic themes. The horizon is open and usually it is private individuals or smaller companies who start crowdfunding. The same applies to the amounts that can be in the four- or five-figure range and are therefore reached after just a few days.
Crowdlending is again a form of money lending that can also involve private projects. A prime example is the purchase of a motorboat by private individuals. Why should one invest in it? Quite simply because the creditworthiness is given and the interest rate is clearly more attractive than with other financial investments. If crowdlending works, it is a classic win-win situation in which the debtor gets his money quickly and easily and the investors generate solid returns.
Finally, crowdinvesting as a capital investment is a particularly exciting form of financial investment because it finances complete projects or parts of projects that fall into the business sector. The sums are in the six- or seven-figure range and the entire organisation is more professional than with the smaller projects.
For this reason, crowd investing as a capital investment is also an opportunity recommended by experts to obtain double-digit returns and to become entrepreneurial. Direct participation in the profits of a company or project is also lucrative.
Here again the example of a ship investment can be mentioned, with which money flows with each charter and each transport, which benefits the investors. It should also be noted that crowd investing as a capital investment covers a long-term horizon and is not suitable for earning the fast euro. It is important to consider the possibilities of an interim exit and the then applicable conditions as well as the costs of the financed company or the question of which part of the money can flow back at all.