Investment platforms and crowdfunding: new way of investing
Crowdfunding (from the English crowd funding – “collective financing”) is a way to attract funds from any interested parties through information technology. Crowdfunding differs from other types of investing by using a special online investment platform.
Everyone has the opportunity to choose an interesting project and invest in it – the only requirement is to have access to the Internet. The minimum investment may be $ 1, and the amount of income normally exceeds the rates on bank deposits.
Participants of crowdfunding are:
- Investor It can be both legal and natural person without any restrictions.
- Person attracting financing It can be legal entity or sole enterpreuner with some limitations.
- Operator of investment platform
He or she develops rules of investment platform, identifies the participants and provide them access to platform.
It can be any legal entity included in the registry of operators by the Russian Central Bank.
Operator should be complied with the certain requirements in order to get into this registry. Crowdfunding has become a very popular type of financing startups and small and medium businesses.