Like any investment opportunity, crowdfunding or investing in early-stage and growth-focused businesses comes with both benefits and risks.
Benefits
Crowdfunding can be a great way to support businesses that you believe in and which you feel good about supporting. Additionally, it can be fun and interesting to follow the progress of a business that you've personally invested in.
If the business that you invest in is successful, you could make a significant return on your investment. Additionally, if the business goes public or is acquired, you could see an even bigger return.
Have you put off investing because you don't have a lot of money saved up? Crowdfunding could be a good solution, because you can invest as you like in a company seeking capital through crowdfunding.
Risks
Unlike larger companies, very few startups will be listed on public stock exchanges — as they’re still private companies — which can make the process of investing a little more complicated.
The main risk associated with investing in startups is that the business may simply fail, and investors won’t get their money back. Due to the potential for losses, this asset class is high risk.
You can learn more about the benefits and risks of investing in startups in our article here and in Seedrs’ guide here.
Please note: We encourage all investors to do their own research and complete their own due diligence before making any investment decisions. This ensures that the investment decision you make is well-informed.