Investment for all – how crowdfunding opened the floodgates
Investment used to be an exclusive club. Not anymore
Investment used to be an exclusive club. You needed lots of money to get a seat at the stock market table, or you were invited to play through private fundraising offers.
It’s never been quicker, cheaper or easier for people to dip their toe in the investment water, and the cost of entry is lower than ever before. And we’ve got crowdfunding to thank for opening the floodgates.
But while most potential investors are familiar with crowdfunding, it’s not always the best option for making money long-term. That’s why it pays to look at other alternative fundraising platforms, which offer a better regulated, more controlled environment for generating profit.
Rise of the dynamic disruptor
Over the past few years, we’ve seen a noticeable backlash against traditional investment models. Interest in joining the stock market is declining as young professionals reject its slow processes and high share prices, which don’t fit with their lifestyle.
In fact, in a survey released last year, only 37% of Millennials felt the stock market was the best place to put their money.
This doesn’t mean they lack interest in making money, however; new investors just want a more affordable way of getting involved, and this is how crowdfunding gained momentum.
Crowdfunding was much more appealing to Millennial investors than more formal, established ways of investing in companies. It cut out middlemen and took them straight to the deal; the entry price was low, limiting the risk of a big loss.
It also attracted a different type of business – dynamic, disruptive start-ups with massive potential for growth. Ambitious investors were able to get a stake in brands like Monzo, which in its most recent funding round raised over £20 million in just over two days.
Considering this, it’s no wonder that experts predict the crowdfunding industry will grow to $300 million by 2025.
Bursting the crowdfunding bubble
But while interest in crowdfunding continues to grow, not every young investor has been given the fairytale ending they hoped for. This type of lending has its drawbacks, including:
Given these concerns, many Millennials are looking at alternative models for making money – which offer the same speed and affordability as crowdfunding, but with a stronger set-up and rewards.
A better route to affordable investment
One of the fastest-growing market opportunities is digital asset investment, and WeOwn is at the heart of this expansion. We connect high growth brands with ambitious investors, who want a quick and cost-effective way to start collaborating. Our way of making money is more effective than crowdfunding, because it delivers short-term security and long-term opportunity.
The process we enable – called tokenization – is much better regulated than crowdfunding, ensuring that only credible companies can take part, and protecting any investments that are made. Potential investors simply log onto our online portal and choose the most exciting opportunities on offer.
One major difference between our method and crowdfunding is that we offer companies immediate liquidity, which means they are able to use the resources invested straight away. As a result, shareholders can see rapid growth in the value of their shares, as well as the long game success that crowdfunding offers.
Another great benefit is the level of involvement, as digital investment is much more interactive than many crowdfunding schemes. Investors can login online and download our My WeOwn app to check on the performance of their assets at any point in time, and also get involved in a number of other features.
For example, companies using our platform to raise money can publish instant updates, so shareholders know exactly what they’re up to. They can also launch voting polls on key decisions and discussion points, giving investors a direct say in how the business is run.
Not only that, brands can release exclusive new investment opportunities to their existing shareholder base – repaying loyalty with the chance to make more money.
Open the door for digital investment
We have a lot to thank crowdfunding for, as it made investment more accessible and opened the doors for other, similar ways to raise capital. But there are clear limitations to its model, which is why Millennial investors are looking for alternative options.
Our digital asset marketplace is proving very popular among younger investors, as it offers the same speed and affordability as crowdfunding, but with more sophisticated benefits. Plus, we’re already attracting exciting brands like PROJECT CROWD with huge potential for growth.
So, if you’re interested in exploring investment without having to bet the house on it, you’ve come to the right place. New companies are releasing offers on our digital investment platform every day, and they’re looking for people like you, who can spot their potential.