CROWDFUNDING

 

This list does not represent a recommendation from Asinko's team to the reader. We recommend that anyone who wants to use any of the services presented here should analyze, decide and when necessary, seek independent financial advice to confirm if the platforms are suitable for their own financial needs. Asinko is not responsible in the event that the reader is resident in a jurisdiction that does not accept the type of service presented here.

OUR LIST OF CROWDFUNDING PLATFORMS

 

Crowdfunding is an online method of collective investment that seeks to provide capital to companies or individuals that need financing. It is then an alternative financing method (that intermediate between the loan or a share issue seekers and the investors) that allows small and professional investors to invest in start-up companies with growth potential, through a technological platform.

Before starting to invest, we recommend that you carefully read the differences between the platforms and providers presented here, because as an investor you can take advantage of and adapt them for your personal benefit. Today there are hundreds of services, powered by different systems and backed by large firms. Choose wisely.

TYPES OF CROWDFUNDING

The European Union recognizes the following 2 types of Crowdfunding platforms whose main purpose is investing (There are more types but in our opinion they are sub-variations of these two categories:

P2P Loans: In plain English, Peer to Peer Lending. That is, they are those platforms where anyone who requires capital for some type of project (it can be anything, like repairing a car) seeks a certain amount, and the "Crowd" finances it in exchange for a fixed interest. This method is the one that resembles a bank loan.


Equity Crowdfunding: In this type, investors finance an investment project, acquiring a stake in the company already founded or to be founded. As we mentioned before, this type is the one that most resembles buying shares in a company. This type is the most popular, with sub-categories of Equity Crowdfunding destined to real estate projects, technology companies, tourism company projects, companies with a social destination (recycling, charity), among many other types.

In other words, just like in a Stock Market, Crowdfunding platforms offer debt instruments and / or shares in companies. Both options carry greater risk than investing in publicly traded companies, but they also have higher profit potential: The higher the risk, the higher the expected return.

Risk Warning: Contracts for Difference ("CFDs") are leveraged products and carry a high level of risk to your capital as prices may move rapidly against you. Losses can exceed your deposits and you may be required to make further payments. 74 - 89% of retail clients lose money when trading CFDs. You should consider whether you can afford the high risk of losing your money. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice.

Copyright 2020 Alexon Capital Ltd.

SHARE THE KNOWLEDGE