Why Invest in Crowdfunding? Here are 8 Reasons Why Not To Be the Forget This Opportunity

Index

• The 8 Reasons to Invest in Crowdfunding
  • 1. You have the opportunity to diversify your investments
  • 2. There is full transparency of information
  • 3. Investing in crowdfunding is the easiest way to invest in startups or real estate
  • 4. Investing in crowdfunding has (almost) costs of zero
  • 5. Tax incentives are provided
  • 6. Investing in crowdfunding also means investing from small amounts
  • 7. There is a non-bureaucratic approach
  • 8. Investing in crowdfunding means being able to support innovative startups
• Let’s sum up: investing in crowdfunding is convenient or not?
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The 8 Reasons to Invest in Crowdfunding

That said, the speech might seem quite reductive. In fact, the benefits of investing in crowdfunding are much wider. Let’s see together in the paragraphs that follow all the reasons why it is worth investing in crowdfunding.

1. You have the opportunity to diversify your investments

To understand the actual advantage of having a diversified investment portfolio, you must first understand how to invest in crowdfunding.

There are various types of crowdfunding platforms. There are:

• Reward-based, in which the people who make the donation receive a reward in return, usually the product for which they made the investment;
• Lending based, considered in all respects as microloaring platforms between people and companies where the gain is represented by the return of the capital plus interest;
• The Equity-based, where in exchange for the sums paid the lender obtains the participation in the share capital of the company becoming a member in all respects;
• Hybrid platforms that admit various types of rewards;
• Finally, Donation based, in which there are no rewards and are usually used by non-profit associations.

2. There is full transparency of information

Crowdfunding platforms of any kind offer an overview of both the tender companies and the project on which to invest that allows you to have clear ideas both on the opportunities and on the risks you run.

Upstream then of the publication of the various offers by the different platforms, there is a work of analysis and monitoring that takes into account both the stability of the company and the validity of the project and, in economic terms and, in the case of Impact Investing, that is to say Crowfunding in projects with a high social impact, also in terms of environmental and / or social sustainability.

3. Investing in crowdfunding is the easiest way to invest in startups or real estate

To say that investing in crowdfunding is easy of course would put you on the wrong track. There are in fact many things to consider and you will have to document yourself to make your decision.

However, if you have decided to become an Angel Investor for someone but have no experience, you are much more facilitated to do so on such a platform, rather than doing it yourself!

On the crowdfunding platforms you will find all the information you need about the project and the company and you also find the tools to carry out the transactions necessary to realize the investment order quickly, safely and without risk.

Some of these include, for example, creating a deposit account or payment account that sees the collaboration of an important financial partner that further ensures the security of your investment.

4. Investing in crowdfunding has (almost) costs of zero

You won’t believe it, but most Crowdfunding platforms does not apply any cost on the investor. To pay a commission are generally the suppliers, especially in the case of Equity.

Only in Crowdlending can a (small) commission on each installment collected can be applied to the investor, while in the Real Estate Crowdfunding there can be a one-off fee to be paid. That’s all! Nothing to do with the exorbitant costs of banks and financial companies.

All this is only if the investment takes place. In fact, if at the end of the collection, the tendering company does not obtain the amount established, the sums allocated immediately return to the accounts of the investors, without the subtracting a single euro.

Finally, to stay on the subject of relations with the banks, it is not even necessary that you have “the right connections”. The collection campaigns are accessible to everyone, the only connection that you need to be true is the internet (together of course a minimum amount of money to invest). Nothing more, nothing less.

5. Tax incentives are provided

Now we come to one of the reasons why earning money with crowdfunding might seem even sweeter: tax cuts.

Investing in innovative projects carried out by Start Up or innovative SMEs through the Equity Crowdfunding mechanism gives you the right to reduce taxes which, in the case of natural persons, corresponds to IRPEF deduction equal to 30% of what was invested, for a maximum amount of € 1,000,000 per year and the obligation to maintain the investment for a minimum of 3 years.

In the case of legal persons, however, a deduction from the IRES taxable amount of 30% of the amount invested, for a maximum amount of € 1,800,000 per year and the obligation to maintain the investment for a minimum of 3 years. Not really bad, isn’t it?

6. Investing in crowdfunding also means investing from small amounts

No matter how much money you have to invest, there are always opportunities to become an investor via crowdfunding! Crowdfunding platforms have extremely affordable minimum limits, sometimes even 20 or 50 euros.

For example, if you decide to invest in real estate crowdfunding you can win a profitable investment in brick even with figures around 100 euros! Incredible, don’t you think? A real small revolution in the world of Real Estate that allows many more people to invest in real estate.

7. There is a non-bureaucratic approach

Crowdfunding portals have turned the investment process into a much smarter business than traditional finance.

Attention, this does not mean that the bureaucracy has completely disappeared: even here you will have to provide your data, upload photos of your documents and in some cases even take a selfie with an identity card in your hand to show that it is you who disbursing the money.

Most of the time it will also be essential to have a bank account or a credit card in order to make the necessary transactions.

However, the steps to be taken are certainly based on a much less bureaucratic approach, in which yes, it is still important to have some credentials, but without turning all this into unnecessary and insurmountable barriers that do nothing but act as a brake on development.

8. Investing in crowdfunding means being able to support innovative startups

We now come to an advantage of investing in crowdfunding that affects not only investors, but also those who get the loans or loans and, to be honest, the whole company.

There are now many innovative Start Up projects that have been able to see the light thanks to Crowdfunding. Some of these could never have access to the banking system and would have ended up being put aside, but today they have become reality and contribute to improving the lives of so many people.

Let’s sum up: investing in crowdfunding is convenient or not?

Of course, all that I just said does not mean that the Crowdfunding funders are fairy-doers that help make dreams come true, absolutely not! What actually brings this fact out is that, in my opinion, the work of the Crowdfunding platforms at least until now has been done well.

This means in other words that:

1. The projects to be financed are well selected;
2. The offering companies are appropriately examined;
3. The information provided to investors on the projects is sufficiently broad and transparent;
4. The selection of the criteria for adhering to collection campaigns is not so restrictive as to put incoming blocks to anyone, but not even so libertarian as to constitute a danger or a risk for the companies or to the investors themselves.

All this gives us hope that investing in crowdfunding is the trendiest, most profitable and safest investment of the near future. At least until it is supplanted by something even more innovative.