The German startup scene is constantly on the move. Internet startups with new, unusual or proven business ideas adapted to the current conditions are springing up like mushrooms. It is noticeable that more and more young companies rely on the swarm financing for the implementation of new projects and collect money from private investors via crowdfunding or crowdinvesting, in order to get the right start-up capital alongside a loan, or to expand their financial base in order to expand the business, Swarm financing in the form of crowdfunding and crowdinvesting are therefore among the current trends in online business.
In a previous blog post on start-up I briefly presented both financing models for startups. Both crowdfunding and crowdfunding involve many private investors with manageable amounts of money in a promising project. Impressive figures speak for the popularity of crowdfunding. The crowdfunding investment volume in 2013 rose by staggering 250%. The Seedmatch platform alone, at 7.42 million euros, registered a year-on-year increase of 166% last year.
nvesting as a lucrative investment
While crowdfunding, which is primarily used to finance social startups and music and film projects, is designed to reward private donors’ exposure to material assets and individual benefits, funders who contribute to startup funding via crowdinvesting platform their contribution at least temporarily company shares.
So it’s not just an option to open new opportunities for new, interesting ideas, but crowdfunding often entails hard-hitting economic interests of private investors behind their participation. All the more so since crowdinvesting is venture capital, which, if successful, often earns much higher interest than can be achieved with most of the classic investments currently available on the market. Realizing real profits with smaller investments is for many the actual driving force behind such investments.
New investment strategy: the crowdinvesting investment portfolio
Crowdinvesting is not only of interest to private investors who want to invest money for a relatively short period of time, but now there are opportunities to invest in young, emerging companies, but also in established, medium-sized companies To build up old- age provision. Online investor and investment marketplaces such as the crowdinvesting platform Deutsche Microinvest provide the appropriate framework for this.
Without banks and intermediaries for lucrative investment deposit
Here, companies present themselves and their projects on the platform and quantify their financial needs. However, not only a few basic data are provided, but potential investors will find detailed figures and company portraits on the portal. In addition to the detailed description of the business idea, information on sales, marketing and strategy, investors will find information on the type and duration of the investment – but above all on the amount of the return.
Investors then have the opportunity to decide on a project and subscribe for the shares online. Investors can also invest smaller, monthly amounts from € 100 over a longer period in selected projects. The commissions for banks or intermediaries are eliminated and even multiple participations are possible, the return prospect can be increased and the risk of the can be spread, so that a lucrative investment portfolio can be built up by crowd investing.