Crowdinvesting is a modern way of project funding
Technological progress has led to the emergence of a new field on the global financial market – FinTech or companies based on advanced information technologies. With the introduction of innovations, the old investment methods are gradually taking a back seat giving way to more modern tools such as crowdinvesting.
Crowdinvesting is an alternative financial tool for investing in small businesses and startups when investors receive a share in the equity capital and are responsible for the risks themselves. The amount of possible profit is not regulated, and therefore can reach significant amounts – for example, in case of venture capital investments.
The first crowdinvesting platforms appeared in the United States in the early 2000s, and by 2020, the volume of the global crowdinvesting market reached a record high of $4.8 billion, showing a 25 % increase in 2019 as compared to the previous year. According to the Puzzle Capital report, by the end of 2019, the number of players in the crowdinvesting market was 46 thousand companies, and the average volume of one crowdinvesting transaction was $104 thousand.
As of August 1, 2019, the following 5 crowdinvesting platforms were the world leaders:
1. FUNDING CIRCLE - London, United Kingdom. Founded in 2010, 72,000 projects funded worth $9.3 billion.
2. OURCROWD - Jerusalem, Israel. Founded in 2013, 170 projects implemented worth $1 billion.
3. CROWDCUBE - Exeter, United Kingdom. Founded in 2011, 821 transactions made worth over $775.8 million (as of the end of 2018).
4. CROWDSTREET - Portland, USA. Founded in 2014, 338 offers published, 17 of them received full funding and paid off. $670 million raised.
5. SEEDRS – London, United Kingdom. Founded in 2012, 720 transactions worth $620.5 million by now.
The popularity of investing in startups among investors is growing for a good reason: the high potential for making profit upon the project implementation and desire to change the world for the better with the help of new technologies have become the impetus for the industry's development. The crowdinvesting funding model allows thousands of investors from all over the world to join any promising project and provides them with information and legal support.
The crowdinvesting project "Duyunov's motors" has brought together over 26,000 investors from 197 countries for 3 years since its launch and has already completed 12 financial development stages out of 20. Apart from the desire to ensure financial independence for their families, our investors are driven by the desire to popularize the innovative energy-efficient technology "Slavyanka" the widespread introduction of which will significantly reduce the damage inflicted on the environment and energy expenses incurred by entire industries.
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