What are the differences between crowdfunding and investment platforms?

What are the differences between crowdfunding and investment platforms?

Crowdfunding typically involves raising small amounts of money from a large number of people, often through online platforms. Investment platforms, on the other hand, allow individuals to invest larger sums in exchange for equity or debt in a business.

Can you give me examples of each?

Sure! Examples of crowdfunding platforms include Kickstarter and Indiegogo, while investment platforms include SeedInvest and Crowdcube.

Which one is better for startups?

It depends on the startup's goals. Crowdfunding is great for validating ideas and building a customer base, while investment platforms can provide larger sums of capital and strategic support.

What are the risks involved in each?

Crowdfunding risks include not reaching funding goals and potential lack of investor engagement. Investment platforms carry risks like equity dilution and the pressure to deliver returns to investors.