The economic crisis has made it increasingly difficult for businesses to secure finance through traditional channels. As a result, more and more businesses are turning to crowd investing to raise the necessary funds. Online investors have been quick to respond to the growing number of investment opportunities on offer and, as a result, crowd investing is growing in leaps and bounds.
Crowd investing is the term given when a large group of people, the crowd, co-invest in people or business online. Crowd investing encompasses both equity and debt forms of investing as well as hybrid forms of the two. Those investing together don’t necessarily know each other before they decide to invest.
So, we’ve designed this section of our site to help you and other investors like you, to understand debt and equity crowdfunding and factors such as the debt-to-equity ratio and make an informed decision.
This is perhaps the type of crowd investing that investors are most familiar with. Equity crowdfunding allows businesses to sell shares in their company to ‘the crowd’. In the case of SyndicateRoom, investors invest alongside experienced business angels.
With debt crowdfunding, investors are in effect lending money to businesses with the expectation that they will receive their investment capital plus interest back. Types of debt crowdfunding include mini-bonds, peer-to-peer lending (P2P) and invoice financing. Read more about debt crowdfunding.
At SyndicateRoom we offer our members the opportunity to invest in startups where an experienced business angel or professional investor is investing their own money and leading the round.
Membership of SyndicateRoom is free; join now to see all of our investment opportunities.