Crowdinvesting refers to the investment of a large number of people in a company. People can support companies or realize projects with relatively small sums.
In crowdinvesting, many people invest small sums in projects or companies. In these cases, the realization of the projects cannot be financed solely by the company itself. The aim here is to generate profits with the invested money.
How crowdinvesting works
Crowdinvesting works similarly to crowdfunding via online platforms. People and interested parties can invest a minimum contribution in projects of their choice. The minimum amount is set by the company itself. Investors act out of economic sense to make a profit.
Difference: Crowdfunding & Crowdinvesting
Crowdfunding is often used to support and develop products or services. Crowdinvesting is on the contrary advantageous if you want to support a company. Crowdinvesting is not a donation but an investment. In return for the investment, the backers receive shares in the company
