Crowdinvesting: the main trend on the investment market

Crowdinvesting is a comparatively new but one of the fastest developing investment areas. The first crowdinvesting platforms appeared in the middle of 2000s in Australia, Great Britain and United States of America (more than a half of all the crowdinvesting platforms in the world operate in this country).

The concept is derived from two English words: crowd (group of people) and investing. It describes a process when a large number of people invest their money in a startup in order to gain profit from it later on. This is what distinguishes it from crowdfunding where people finance projects on a charitable basis and can count on some privileges only, such as a special price for the future product.

According to the reputable international statistics portal statista.com, from 2014 to 2019, the volume of the world's crowdinvesting market had grown almost 5 times, demonstrating a stable growth of around 25%. The analysts predict that the market will continue growing and reach $ 8 billion by 2023, with more and more investors participating in crowdinvesting projects.

The most successful crowdinvesting project in the world is the international brewery chain Brewdog that successfully operates using the investors' funds. During the first 10 years of its existence, it attracted 72.5 million pounds from almost 118,000 investors who got the company's shares in return.

Crowdinvesting is usually chosen by companies that stand on their own two feet and need extra funds to expand the existing business. There is typically an intermediary company that is engaged in attracting the required amount of investments and acts on behalf of the investors.

What is the reason for the growing popularity of crowdinvesting that is also often called collective investment?

Such projects are very affordable for investors. Since the funds are raised from dozens, hundreds and thousands of investors, the entry threshold for each participant is not high. For example, the minimum investment in the project "Duyunov's motors" is only $ 50.

The investments made can pay off manifold in case the project succeeds, because, in fact, the investors purchase the company's shares at a very low cost and can subsequently sell them on the stock market at a much higher price due to the growth of the company's assets or get dividends from the company's activity. The risks of the project's failure are quite high, too. Therefore, it's very important to choose reliable companies for investing that create a unique product and have a high growth potential.

It's not necessary to have special profound knowledge for crowdinvesting, the only thing that is important is choosing the right project. Meanwhile, the market of traditional investments areas is ruled by the professionals: banks, investment funds, insurance and finance companies. They purchase the best assets and do not let ordinary people into promising projects.

Crowdinvesting is an attractive option for the companies that need funding because it allows to avoid backbreaking interest rates for bank loans. Besides, the numerous investors of the project form the first line of the future product consumers, they are personally interested in the project's success and its promotion, of course, if the product or service is in high-demand and useful.

According to the international statistics, people typically invest collectively in finance, service and technology related startups. Millions of people understand the value of science, pay attention to environmental friendliness of the technology, that's why innovative projects are the best choice for collective investment. At the beginning of crowdinvesting there were plenty of "raw" projects, whereas now there are fewer and fewer of them on the international market, because both crowdinvesting platforms and investors themselves choose the most reliable and promising ones among the huge variety of startups.

What makes the project "Duyunov's motors" unique for investors?

The international crowdinvesting project "Duyunov's motors" can't be called a startup: it has been around for 3.5 years while the team engaged in the product development started working much earlier. The project successfully develops achieving the set goals, which proves the team's professionalism and correctness of the chosen path. Over 34,000 people from all over the world have invested in the "Slavyanka" technology and construction of "Sovelmash" design and engineering technology department. At the end of 2020, the company started building the D3333E on the territory of the special economic zone "Technopolis "Moscow". After the project gets implemented and "SovElMash" starts earning profit from developing the world's most effective electric motors, the investors will be able to get profit in dividends. Alternatively, after "Sovelmash" is reorganized into a public joint-stock company, they will be able to sell the company's shares at the IPO.

Such reliable and promising projects are not common on the crowdinvesting market, and in this particular case, there is a combination of three success ingredients:
- the unique breakthrough "Slavyanka" technology, which for the first time in the last 100 years has significantly improved the performance characteristics of induction electric motors and which, more importantly, has already proven itself viable in real operating conditions;
- the demand for the technology on the global market due to the urgent need to tackle the issues of insufficient energy resources and environmental pollution;
- the professional and responsible project team that achieves the set goals of the technology development and commercialization, construction of the D3333E, and attracting investments in the project.

Participation in the crowdinvesting project "Duyunov's motors" is an opportunity to provide yourself and your family with a stable passive income for the future, a good pension, and take care of the planet's environment that we'll pass on to the future generations.