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.
crowdfunding
Well known by Brazilians who use social networks, the crowdfunding It is what we popularly know as a “vaquinha”, but in an expanded and professional format. In this case, the return on investment is made through rewards with gifts, goods or services. The amounts invested are not returned, unless the financed project does not reach the necessary amount, if this occurs, the refund occurs, but there is a discount on the platform usage fee.
The 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 focused on donation in which there is no type of reward. This is the case of mobilizations around charitable institutions 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).
crowding
The 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, he is a peer to peer lending (peer-to-peer) established between an individual investor and the organization that is the object of his investment. This type of financing does not go through banks or financial institutions. It is intermediated by digital financing platforms who manage the investor's resources, choose the ventures that will carry out the fundraising, monitor their financial health, the correct application of the 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.
crowdequity
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.
Crowdfunding Platform
Crowdfunding platforms play a crucial role in modernizing the financial market and supporting entrepreneurship. They democratize access to capital, providing a more inclusive, transparent, and efficient way to raise funds. Investors have access to detailed information about the projects and businesses they are investing in, and can track the progress and use of funds in real time. In addition, these platforms promote initiatives with positive social and environmental impact, encouraging innovation and economic growth.
At Sitawi, we focus on collective loan (crowdlending) made through the Crowdlending Platform for Impact Positive. This structure makes it possible to select impact businesses in the scaling phase to receive an injection of capital and thus increase their positive impact. Our goal is to offer attractive and more socially/environmentally responsible investment to the investor, by linking positive impact to financial return, in addition to several other advantages.
Invest with a positive social and environmental impact!
Are you interested in investing through crowdfunding, getting a financial return and also supporting businesses that positively transform the world? Sign up for sitawi platform and start your impact investing journey!
