The sector of equity crowdfunding concerns where the investors, irrespective of being amateur or professionals, invest in a newly born organization which is un-listed. The goal is to get hold of some shares of the newly born company in order to share the profit once it starts to generate revenues in huge sums. The shareholders in this situations, enjoy partial ownership which means, they prosper and share the profit when the company makes profit and same strategy goes with the loss as well. If the company cannot make up to the milestones which are associated with the company, the investors lose the money, a sum of it or all of it.
The equity crowdfunding is not something which is exempted from financial or security regulations. It is a well-formulated financial strategy which enables the investors to invest in commercial enterprises. The million-dollar question is, does the Fintech promulgates the notion of crowdfunding campaigns or hinders them? While talking about offline financial dealings and transactions, investors hardly find any private company to invest in. There is a need of resources and strong networks to find a good deal. What the Fintech has basically done, is that, it has brought the investors who like to be a part of the crowdfunding campaigns and companies seeking the investors, closer. Now, all the companies are registered on an online portal from where, the investor can check the entire profile of the company, review the entire company after critically analyzing the magnitude of the company plus the idea as well. The decision at the end, is done by the investor himself. The task of Fintech was just to diminish the gap between the companies and investors.
If you want to invest now, you don’t need to worry about your bank account. Fintech has empowered every individual to become an entrepreneur by investing as low as $10. Yes, you can start trying your luck a businessman by investing meager amounts. Fintech has also enabled the businesses to raise funds from within the family and friends’ circle. This practice keeps the business society-oriented and there is always a room for change or modify in the idea.
It is the fruit of Fintech that once the smallest crowdfunding campaigns turned out to be the Snapchat and Uber of today. These private ventures then go on to producing their several profitable off-shoots thus multiplying their worth and harnessing opportunities for more and more people.