Crowdfunding reverses the traditional concept of looking for large amounts of money from one source to finding a much smaller amount from many sources and using the network to achieve it.
You must use Crowdfunders that are authorized with financial authorities in their jurisdiction (Crowdfunder) and even then carefully consider the risks involved
Interest-Based – investors receive fixed interest payments for a certain period. At the end of the loan period, the loan must be paid in full. If you want to know more about crowdfunding, then you can also visit www.equitydoor.com/invest/.
Image Source: Google
Investors get a stake in the business in which they invest. Investors take the same risks as you and may demand Due Diligence before investing.
A Google search for the Crowdfunding Platform resulted in 845 thousand hits. Not all of this will be relevant and many are not honest, or at least directed enough to be a worthy party for you as an investor.
Some will be arranged – maybe not as crowdfunders but as Investment Advisers, Lawyers, etc. who give them credibility.
Use professionals to guide you through the selection process
Whatever option you use, having a lot of 'funders' creates an administrative burden that you might not need when your time is valuable. Different platforms provide different services so you have to be very careful how you advance your project, choosing one that provides the facilities you need, now and in the future.
It may be true that legal and regulatory authorities are behind the curve when it comes to something as new and dynamic as Crowdfunding, but remember, you are subject to the general legal environment of your home country and, potentially from countries where your investors are registered. In particular, the 'consumer protection' laws of both countries may apply.