Why invest through crowdfunding
Very attractive returns
The return on these investments generally varies between 3% and 12% per year , which is much higher than what you earn from your savings book.
Crowdfunding is a very simple way to generate additional passive income.
You just have to invest your money and at the end of the year you will benefit from a surplus of approximately 10%.
Important
Investing through crowdfunding is not without risk.
Lending money to VSEs / SMEs presents a risk of non-repayment or loss of capital.
However, the risk is lower than investing in the financial markets.
In addition, with crowdfunding currently expanding rapidly, investment platforms are becoming increasingly proficient in reducing risk.
How crowdfunding works
The principle of this type of investment
You help these SMEs to carry out their project and in exchange they pay you an interest rate applied to the amount you have invested.
This type of investment is made possible thanks to online crowdfunding platforms that connect individual investors and SMEs.
Crowdfunding concerns all categories of projects, whether cultural, social, business creation, or innovation or environmental.
Generally, crowdfunding platforms are thematic: cultural, digital, social, environmental, business development, innovative projects, etc.
Forms of crowdfunding
There are three forms of crowdfunding:
- The donation with or without consideration . You contribute to the project financially without expecting anything in return or in exchange for a symbolic reward such as a personalized T-shirt. We are not talking about this type of crowdfunding in this article.
- The loan paid or not . This is called “crowdlending”. You lend a sum of money to the project leader and the latter pays you via interest added to the repayment of the amount loaned. You act as a kind of bank.
- Capital investment or “crowdequity” . You invest in the project through the purchase of shares in the company carrying the project.
