Crowdinvesting and Crowdfunding
August 6, 2019
At first glance, crowdinvesting is similar to crowdfunding and in fact they have identical principles. However, there are important differences. Let’s see what’s wrong.
Crowdfunding is attracting investment in the project from the crowd. At the same time, investors do not receive a share in the project, but only symbolic preferences. To be honest, crowdfunding appeared a long time ago and was originally intended to raise funds for charitable or artistic projects. There was no other way to raise money for them.
Among the important crowdfunding projects are Notre-Dame-de-Paris or, for example, Beethoven’s works, where investors could hear the works of a brilliant composer.
In crowdinvesting funds also come from the crowd. But at the same time, each investor receives a share in the project. This term appeared in 2009 as a modern and convenient way to attract investments in startups.