You know what it is crowdlending? Do you know the difference between him and the crowdequity? It's the crowdfunding, already attends timeline of your social networks? About 10 years ago, we started to familiarize ourselves with the concepts of crowdfunding. And we certainly have already invested in some social projects or businesses of friends who needed a little push to take off. Over time, this form of funding grew and became professional, and now it inhabits the financial market with varied options for profitability.
In Brazil, investments through crowdfunding platforms were only regulated in 2017 and, since then, initiatives have grown substantially. However, despite starting from the same collective and collaborative principle, these fundraising modalities differ in some particular characteristics. If you want to invest capital with purpose, but also want a profitable return, learn the details of each one here to make an informed decision.
O crowdlending, also known as peer-to-peer lending or P2P lending – involves a group of people who decide to finance a particular project or venture, as well as in the crowdfunding and not crowdequity. However, unlike the others, it is a peer-to-peer loan (peer-to-peer) established between an individual investor and the organization that is its investment object. This type of financing does not go through banks or financial institutions. It is mediated by digital platforms that manage the investor's resources, choose the ventures to be financed, monitor their financial health, the correct application of values and remunerate the capital invested in the fixed income model.
The advantages of crowdlending are many. Firstly, the transparency of the process, since the investor knows what he is investing in and is informed step by step of the use of the funds applied. From the entrepreneur's point of view, the advantage of using P2P lending lies in the cost of interest, which is usually lower than those charged on loans made through traditional financial institutions.
Well known by Brazilians who use social networks, the crowdfunding it's what we popularly know as "crowd", only in an expanded and professional format. In this case, the return on investment is made through the reward with gifts, goods or services. Invested amounts are not returned unless the financed project does not reach the required amount. In this case, the return takes place, but there is a discount on the platform usage fee.
O crowdfunding it is an investment made by individuals and has been widely used to finance ideas, cultural projects, the production of consumer goods or scientific inventions whose authors want them to be industrialized. These are operations with a much lower cost than those carried out in the crowdlending and not crowdequity. There is also the aspect of crowdfunding geared towards donation in which there is no kind of reward. This is the case of mobilizations around charities or certain social causes.
Within this modality, there is still another possibility of mechanism, the matchfunding, which work with the participation of a company or institution. These campaigns usually work as follows: for every dollar that a person puts into a crowdfunding campaign, the company or institution participating in the program can double or triple the value of the collaboration.
The objectives of crowdfunding models can be diverse, and this type of mechanism can even be used for philanthropic purposes, as in the case of the fund saving lives, created in 2020 in the context of the pandemic and which counts on the financial management of Sitawi in partnership with the BNDES, which, with each real donated, puts more R$1, in a joint effort to purchase equipment and supplies for public and philanthropic hospitals that serve patients with Covid-19 by the Unified Health System (SUS).
This is the most robust modality and generates greater commitment to the invested organization. It is the system in which the investor not only lends his resources, but also acquires a part of the company and becomes its shareholder. It has always been offered by the traditional financial market in the form of venture capital or private equity and does not assume a time horizon for return on investment.
If the profitability is not worth the level of involvement, dedication and responsibility foreseen in this operation, the investor will only be able to withdraw his investment if he sells his share.
At Sitawi, we focus on collective loan (crowdlending) made through the Collective Loan Platform. This structure makes it possible to select impact businesses in the scale phase to receive a capital injection and thus amplify their positive impact. Our objective is to offer a cheaper and more attractive capital to the investor, by linking a positive impact to the financial return, in addition to several other advantages.
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