NeoWave is a corporate advisory business which brings together a team of experienced professionals to assist clients in achieving their business goals and objectives.
Crowd funding sees a group of potential investors contribute toward one investment pot, with a higher number of participants each offering a smaller amount of money than would typically be sought by a company through mainstream lending platforms.
Crowd funding is a way of raising finance by asking a large number of people each for a small amount of money. Traditionally, financing a business, project or venture involved asking a few people for large sums of money. Crowd funding switches this idea around, using the internet to talk to thousands – if not millions – of potential funders. Typically, those seeking funds will set up a profile of their project on a website. They can then use social media, alongside traditional networks of friends, family and work acquaintances, to raise money, which can be sought one of two ways:
Investors receive their money back with interest. Also called Peer-to-Peer (p2p) lending, it allows for the lending of money while bypassing traditional banks. Returns are financial, but investors also have the benefit of having contributed to the success of an idea they believe in.
People invest in an opportunity in exchange for equity. Money is exchanged for shares, or a small stake in the business, project or venture. As with other types of shares, if it is successful the value goes up. If not, the value goes down.
Crowd funding isn’t exclusive to any type, sector or industry. It can be utilised by start ups just beginning their business journey or by established companies wishing to source funding for a project or expansion.
Crowd funding relies on attracting interest and investment from a larger number of investors, although the price per investor is lower. As such, companies may find it difficult to garner enough exposure and traction, leading to insufficient investment.
There are a multitude of crowd funding sites readily accessible on the web now, with as varied a user base as can be imagined. Relying solely on these sites to offer enough exposure to result in full investment may not be prudent, as such campaigns often need marketing to achieve their full potential