Investment crowdfunding allows investors to invest small amounts into many projects, providing a project-financing marketplace for diversified investments. Investors can earn profits from lending to or financing projects, commonly referred to as P2P financing, or by buying shares in private companies, known as equity crowdfunding. Popular investments include Property, startups, and invoice-financing.
Investors gain direct access to attractive and exciting projects, which may not be usually available for them due to high minimum investments or a lack of access to such opportunities. Investment crowdfunding is direct-to-project and thus considered to be risky, which is reflected in the high returns.
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