{"id":4925,"date":"2019-02-15T14:16:42","date_gmt":"2019-02-15T14:16:42","guid":{"rendered":"http:\/\/139.59.38.172:8081\/?p=4925"},"modified":"2019-02-20T11:58:17","modified_gmt":"2019-02-20T11:58:17","slug":"what-is-crowdfunding-investment","status":"publish","type":"post","link":"https:\/\/www.mymoneysouq.com\/financial-blog\/what-is-crowdfunding-investment\/","title":{"rendered":"What is Crowdfunding Investment?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Keeping the traditional investment options aside, currently, the most-happening type of investment is crowdfunding. Crowdfunding is a way of investment where a large group of investors can invest a small amount of money each. Entrepreneurs can pitch in their ideas and interested investors can put their investments in the venture. Be it any kind of business, irrespective of the sector, investors and entrepreneurs can make use of Crowdfunding. <\/span><\/p>\n<h2><span style=\"font-weight: 400;\"><strong>How different it is from other investments?<\/strong><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In recent times, most of the successful investors are adapting crowdfunding considering its distinct working principles. It is different from other investments in several ways. Like,<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>The number of investors<\/strong>: Usually, one or more investors can invest in a particular business. Whereas in crowdfunding, a large group of investors can take part. <\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>A small amount of investment<\/strong>: Crowdfunding doesn\u2019t require huge investments. An investor can invest a small amount of money into various sectors. &nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>The way of approach<\/strong>: Investors can find crowdfunding accepting ventures through crowdfunding platforms or online via social media. &nbsp;&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Low risk<\/strong>: Making a small investment will safeguard the investor during unfavorable times which is not most welcomed in traditional investment methods. <\/span><\/p>\n<h2><strong>Crowdfunding types and platforms<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">As said earlier, investors can find investment opportunities online via social media or at crowdfunding platforms. But before exploring the various crowdfunding platforms it is important to understand the types of crowdfunding. Crowdfunding types usually vary with the way returns are provided to the investors. Some of the crowdfunding types are,<\/span><\/p>\n<h4><span style=\"font-weight: 400;\"><strong>Equity-based crowdfunding<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">This is for investors who are looking to invest in a business(startups, real estate, etc.) and get some profit. In this case, an investor buys a small share in the business. Even though this is quite similar to the traditional investment option, this involves several investors where each investor will get a small share in the assets. <\/span><\/p>\n<h4><span style=\"font-weight: 400;\"><strong>Peer-to-Peer based crowdfunding<\/strong>&nbsp;<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">This is like lending some money to set up a business or be it any purpose. The investor can get his money back with some interest rate after a certain period of time. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once the investors decide the crowdfunding type, he can verify and select amongst the several crowdfunding platforms available. <\/span><\/p>\n<h2><span style=\"font-weight: 400;\"><strong>Crowdfunding investment options in the UAE<\/strong> <\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Like any other nation, crowdfunding started trending all over UAE. Crowdfunding investment facility is provided on several ventures like software startups, industries, real estate, etc. As UAE is observing quite a lot of crowdfunding approach, which indeed resulted in the rise of several crowdfunding platforms like SmartCrowd, Durise, Humming Crowd Reality(HBR), Beehive, Eureeca and many more. <\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>SmartCrowd<\/strong> &#8211; &nbsp;SmartCrowd offers real estate based crowdfunding. It is well-known in offering qualified properties to investors only after a comprehensive screening process. And this is the only <a href=\"https:\/\/www.smartcrowd.ae\/\" target=\"_blank\" rel=\"noopener noreferrer\">real estate crowdfunding<\/a> company which is regulated by DFSA(<\/span><span style=\"font-weight: 400;\">Dubai Financial Services Authority<\/span><span style=\"font-weight: 400;\">). &nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Durise<\/strong> &#8211; This provides real estate crowdfunding investment opportunities for low investments. <\/span><\/p>\n<p><strong>Humming Crowd Reality(HBR)<\/strong> &#8211; It provides investment options for start-ups, SME and real estate ventures as well.<\/p>\n<p><span style=\"font-weight: 400;\"><strong>Beehive<\/strong> &#8211; <a href=\"https:\/\/www.beehive.ae\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Beehive<\/a> offers peer to peer based crowdfunding investment options for SMEs. <\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Eureeca<\/strong> &#8211; It is an equity-based crowdfunding platform that connects the investors and entrepreneurs. &nbsp;<\/span><\/p>\n<h2><strong>Advantages of crowdfunding investment<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Being a successful way of investment, some of the advantages of crowdfunding investment are: <\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Low investments can be made<\/span><\/li>\n<li><span style=\"font-weight: 400;\">As the investor invests a small amount of money they can invest in several ventures<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The probability for loss is less when low investments are made<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Can build the network and get to know many successful investors <\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Most of the investors look for investment options that can gain them some decent profits. And one of the best ways for it is crowdfunding. As some wise man said \u201cDon&#8217;t put all your eggs in one basket\u201d, crowdfunding investment follows this perfectly. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Keeping the traditional investment options aside, currently, the most-happening type of investment is crowdfunding. Crowdfunding is a way of investment where a large group of investors can invest a small amount of money each. Entrepreneurs can pitch in their ideas and interested investors can put their investments in the venture. Be it any kind of [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":4933,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6,96],"tags":[],"class_list":{"0":"post-4925","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-featured","8":"category-general","9":"category-investments"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Crowdfunding Investment? - MyMoneySouq Financial Blog<\/title>\n<meta name=\"description\" content=\"Crowdfunding is a way of investment where a large group of investors can invest a small amount of money each. 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