Close Menu
What The FinanceWhat The Finance
    What's Hot

    Whistleblowers Unmask Schwab’s Toxic WEF Secrets

    April 25, 2025

    Capital One-Discover Merger Reshaping the Credit Card Industry

    April 24, 2025

    Michael Saylor’s Strategy New $286 Million Bitcoin Purchase

    April 15, 2025
    Facebook X (Twitter) Instagram
    X (Twitter) Facebook YouTube
    What The FinanceWhat The Finance
    Donate
    • NewsWire

      Capital One-Discover Merger Reshaping the Credit Card Industry

      April 24, 2025

      Michael Saylor’s Strategy New $286 Million Bitcoin Purchase

      April 15, 2025

      Breaking Down the U.S. Budget

      February 14, 2025

      The Financial Impact of Mizotakis Resigning in Greece

      February 1, 2025

      Incoming US President Shocks with $TRUMP Memecoin Launch

      January 18, 2025
    • Bitcoin

      The Rise of State-Level Strategic Bitcoin Reserves

      February 19, 2025

      How Oklahoma is Embracing Bitcoin with Legislation

      January 15, 2025

      Without Bitcoin: A Grim Vision of the Financial Future

      January 6, 2025

      Rumble Video Creators to Be Paid in Bitcoin

      December 24, 2024

      French Politician Advocates for EU Bitcoin Reserve

      December 17, 2024
    • Crypto

      The DAO Governance Battle Between Corporations & Blockchain Rebels

      October 25, 2024

      Altcoin Season Coming to an End? BTC Dominance & Institutions

      September 27, 2024

      Is Tether a $118 Billion Dollar Scandal Waiting to Happen?

      September 18, 2024

      Uncovering North Korean IT Workers in DeFi Scam

      August 16, 2024

      Navigating the Crypto Market: Avoiding Liquidation & Bull Traps

      July 24, 2024
    • Stocks

      NASDAQ 100 Welcomes Bitcoin Through MicroStrategy

      December 14, 2024

      Master the Time Value of Money Financial Concept

      December 9, 2024

      MicroStrategy Convertible Debt Expansion Sparks Stock Surge

      November 21, 2024

      Financial Ratios Guide to Measuring Business Performance

      November 18, 2024

      The Highest Paid CEOs of 2024

      October 1, 2024
    • Global Economy

      Whistleblowers Unmask Schwab’s Toxic WEF Secrets

      April 25, 2025

      Tariff Tensions Drive Market Volatility

      April 9, 2025

      Red in Name Only: Labour’s War on the UK Working Class

      March 18, 2025

      AI, Robotics & the Future of Cheap Production

      January 20, 2025

      Can Milei Inflation Gamble Hurt Argentina’s Future?

      January 13, 2025
    • TradFi
      • Investment Ideas
      • Forex
      • Commodities
      • Best Deals
    • Markets
      • Cryptocurrency Prices
      • Fear & Greed Index
      • World Market Indices
      • US Stock Market
      • Live Forex Rates
      • S&P 500
      • Gold
    What The FinanceWhat The Finance
    Home»Investment Ideas»Crowdfunding: Get Rich Quick or Get Poor Quicker?
    Crowdfunding
    Investment Ideas

    Crowdfunding: Get Rich Quick or Get Poor Quicker?

    October 20, 2023No Comments3 Mins Read
    Share
    Twitter Facebook Reddit LinkedIn Telegram

    The Financial Times told us in 2014 that the alternative finance market grew by 91% over the last 12 months and is expected to top £1.6bn in that year. In 2023 crowdfunding is worth closer to £7bn per year, more than a 300% increase in 9 years.

    So, what is crowdfunding and why has it suddenly become so popular?  More importantly, is it a good idea?

    What is Crowdfunding?

    Crowdfunding is a modern and popular method of raising funds for various purposes, such as launching innovative products, supporting creative projects, aiding charitable causes, or even helping individuals during difficult times.

    As the name suggests, crowdfunding relies on the collective support of a large number of people to contribute small amounts of money, which ultimately helps in achieving the desired financial goal. The internet plays a crucial role in connecting creators or campaign organizers with potential supporters from all around the world.

    Crowdfunding platforms, such as Kickstarter and Indiegogo, have proved instrumental in the success of thousands of projects, and have made it possible for visionaries to transform their ideas into reality. Aspiring entrepreneurs, artists, and philanthropists alike have benefited from this ingenious funding model, which truly epitomises the power of community and generosity.

    The Success Stories

    A success story amongst the later, are Chapel Down, a wine producing company in Kent who have adverts on London Underground trains encouraging people to invest in their company.  They are now the largest winemaker in England and were tipped as a good investment by Midas Investment Management in 2013.

    Julia Groves, chairwoman of the UK Crowdfunding Association, states that this type of investment is, “a real alternative for your savings” as low interest rates are making other forms of investment less attractive to savers.  There is also evidence that this form of funding is becoming popular due to the reluctance of banks to provide business loans so businesses are forced to look into other options.

    Upside and Downside

    While this seems like an interesting and potentially profitable venture to put your savings into, there are some definite downsides.  The biggest downside being that there is always a risk that the business you have invested in will simply not make it.  Many businesses started up through crowdfunding go bust within a few years.

    Investing through crowdfunding offers both higher and lower risk options for those looking to get involved. Debt crowdfunding allows individuals to receive regular payments from the business, which would become a priority in case of financial difficulties.

    On the other hand, equity investments can lead to much larger rewards but also come with greater risks; if things don’t go as planned you could lose your money.

    Look to the Future

    Although there are clearly benefits and risks involved in crowdfunding, this type of business finance and investment is part of a growing trend.  Good research is essential in deciding to invest in one of these schemes as well as full awareness of the risks involved.

    Author Profile

    Lucy Walker
    Lucy Walker
    Lucy Walker covers finance, health and beauty since 2014. She has been writing for various online publications.
    Latest entries
    • April 25, 2025Global EconomicsWhistleblowers Unmask Schwab’s Toxic WEF Secrets
    • April 9, 2025Global EconomicsTariff Tensions Drive Market Volatility
    • March 18, 2025Global EconomicsRed in Name Only: Labour’s War on the UK Working Class
    • March 7, 2025SatoshiCraig Wright Banned from UK Courts with Civil Restraint Order
    Share. Twitter LinkedIn Telegram Reddit Facebook
    Previous ArticleUniswap V4 KYC Compliance: A Paradigm Shift in Decentralized Finance
    Next Article Why 90% of Startups Fail & How to Join the Elite 10%

    Related Posts

    Bitwise Bitcoin Standard Corporations ETF

    December 30, 2024

    Is SentinelOne Reinventing Cybersecurity by Removing Passwords?

    April 15, 2024

    Nauticus Robotics: Pioneering Oceanic Robots

    January 4, 2024
    Add A Comment
    Leave A Reply

    Stock Ticker
    • Loading stock data...

    Whistleblowers Unmask Schwab’s Toxic WEF Secrets

    April 25, 2025

    Capital One-Discover Merger Reshaping the Credit Card Industry

    April 24, 2025

    Michael Saylor’s Strategy New $286 Million Bitcoin Purchase

    April 15, 2025

    Tariff Tensions Drive Market Volatility

    April 9, 2025
    Categories
    • Best Deals
    • Bitcoin
    • Commodities
    • Crypto
    • Forex
    • Global Economics
    • Investment Ideas
    • NewsWire
    • Satoshi
    • Stock Market
    Recent Comments
    • Bitcoin Grandad on The Aftermath: Craig Wright, BSV & nChain in Crisis
    • Peter Williamson on SUI: A Rising Force in the Blockchain World
    • Peter Williamson on Robotics Revolution 2024: A Guide to 16 Industry Leaders
    Also Check Out

    Craig Wright Banned from UK Courts with Civil Restraint Order

    March 7, 2025

    The Rise of State-Level Strategic Bitcoin Reserves

    February 19, 2025

    Subscribe to Updates

    Get the latest sports news from SportsSite about soccer, football and tennis.

    Your source for financial news. This is not financial advice. Our opinions are independent of any financial organizations.

    2007 - 2023 | What The Finance Magazine

    We're social. Connect with us:

    Facebook X (Twitter) Instagram YouTube LinkedIn TikTok
    Top Insights

    Whistleblowers Unmask Schwab’s Toxic WEF Secrets

    April 25, 2025

    Tariff Tensions Drive Market Volatility

    April 9, 2025

    Red in Name Only: Labour’s War on the UK Working Class

    March 18, 2025
    Categories
    • Best Deals
    • Bitcoin
    • Commodities
    • Crypto
    • Forex
    • Global Economics
    • Investment Ideas
    • NewsWire
    • Satoshi
    • Stock Market
    Pages
    • About
    • Advertise
    • Get In Touch
    • Markets
    • Privacy Policy
    • Donate
    • Trending Articles

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok