What is Crowdfunding?
All you need to know about this alternative investment

The world of entrepreneurship is changing. Until a few years ago you had to ask for help from large entities or your family and friends to take care of the costs if you wanted to carry out a project or a business. Nowadays, it is no longer necessary: crowdfunding has arrived.
Crowdfunding is simply a collective financing. All projects go through a very selective process before being launched on the platform, and it is done through online investments in a very safe way.
How does it work?
The process is very simple:
- First, entrepreneurs’ proposals are received.
- Afterwards, the proposals are analyzed and evaluated to see whether the business is viable or not.
- Next, the investment proposal is studied so as to determine whether it is at the right price or not.
- If it is accepted, the campaign is launched so that you, as an investor, can decide what to invest your money in.
- After the launching of the campaign, the so-called ‘Smart Investment’ is carried out. This process allows you to obtain all the documentation of the project you are interested in and of the company behind it. There you can talk to the entrepreneurs, attend the opening conference and so on. All your doubts about businesses to invest in will be solved at this point.
- Thereafter, the project will be executed. From that moment on, you will have all the documentation about the investment you have made and the results.
Keep in mind that investing is an important decision. That is why we take very seriously the fact of providing you with the best information so that you can decide how to invest your money.
Why is it interesting to invest in crowdfunding projects?
You may think that investing in crowdfunding projects is not as interesting as it seems, but it really is. Investing in mature companies is challenging as you need to have a lot of money available. However, crowdfunding does not require huge amounts of cash.
You will probably have saved some money in your favorite piggy bank and would like to invest in order to generate something else. Money that is sitting idle does not pay off. Now, I’m sure you always ask yourself the following question: What and where to invest my money in? The answer is crowdfunding.
Main advantages of crowdfunding investment
In case you still doubt about the crowdfunding system, read the main advantages of this type of investment.
You will not have to invest a large amount of money, so you will be able to make different investments.
- You will just have to ask yourself the question ‘What to invest in today?’
- You are not subject to the maintenance fees and purchase costs that you have when you make an investment from a bank. You will simply have invested the fixed amount. No more, no less.
- You will be able to be part of innovative and very original projects.
- You will get a better return on your savings and less risk.
- You will be able to monitor your investments online.
So, have you decided how to invest your money? Crowdfunding is, without any doubt, the best option nowadays.
Startup investment through a totally secure process.
One of the most common doubts that revolve around this type of investment is whether it is a safe way to invest money. The answer is yes. We select the best businesses to invest. If it is not safe for you, it is not safe for us either.
Moreover, we deliver all the information of the project to your home so that you only have to take a look and decide if this is the startup in which to invest. Of course, choosing where to invest your money will not be easy, all our projects will surely be interesting for you.
Long-term investments, a safe bet
Crowdfunding is characterized for being a medium-long term investment. If what you want is to obtain immediate bonuses, this is not your platform. However, why are long-term investments a safe bet? Let’s take a look.
- Long-term investments usually give more profitability.
- An investment that is not over in a few days means that fewer mistakes are made. Consider that in short-term investments you are in and out of the market very quickly, so decision making is also much faster. Therefore, more mistakes can be made. For this reason, crowdfunding bases its philosophy on medium- to long-term investments.
- Such investments are often easier to make, especially when you don’t have to be always checking whether you are succeeding or not. Long-term investments go little by little, hence it is much easier to follow and simple to manage.
- You can carry several investments at the same time as they are long term.
Within the crowdfunding system, what can I invest in?
The crowdfunding method accepts all kinds of ideas. The only requirement is to be viable so that, finally, it is profitable. Therefore, if a project is on the platform, it is because it has passed all the controls we establish and is completely viable.
What does this mean? Well, there is no standard investment model. The possibilities can be endless, which is great because you can choose the option that best suits your thinking or your lifestyle. Remember that one of the maxims of investing is to believe in the project you are putting your money into.
So if you ask yourself the question ‘where can I invest my money’, we advise you to look for a crowdfunding project that is similar to you and your way of life. Don’t think twice and invest in this new method.
Related post