Several years ago, business angels were all the rage in the investment world. Obtaining financing was reserved for elected officials who managed to do so, either by trying their luck with banks, or by contacting particularly wealthy relatives, or even by spending weeks in desperate meetings with investors.
In short, few people could set up their own business or launch their own activity, such as making a music album or publishing a book, without the help of bankers and financiers. And in any case, you always risked losing part of your capital or paying exorbitant interest. But all this is changing, thanks to the arrival of crowdfunding or crowdfunding. And I’ll tell you why.
In 2018, crowdfunding made it possible to finance projects worth 402 million euros, operations which made it possible to inject 65 million euros into the global economy. But how does this type of financing work?
Crowdfunding is a participatory system which aims to collect financial contributions from a large number of individuals. Via a specialized platform, the crowdfunder (project leader) therefore collects funding to set up its own activity in real estate, technology or agriculture.
In crowdfunding, two parties are involved in a fundraising operation:
However, like any financing system, crowdfunding always presents a risk for the investor, as the specialist Jean SADECKI so aptly puts it. In addition, the investment can be made in different ways:
For entrepreneurs, crowdfunding brings several advantages not found with traditional bankers and investors:
In short, crowdfunding is much more than just a means of financing. It allows you to get people talking about your project and even to find your first customers. And this even before you have launched your business.