Crowdfunding - the opportunities and risks
21. September 2015
CEO of Swedbank Investment Funds AS, Kristjan Tamla, explains the opportunities and risks involved when investing in crowdfunding projects.
- Allows to dilute your investments because of the usually low initial investment amounts.
- Gives the chance to invest into projects dear to one's heart (i.e. a neighbourhood cafe).
- Crowdfunded projects allow the investor to be more hands-on in the project and influence its outcome.
- All types of crowdfunding aren't regulated enough still.
- Investing in projects dear to one's heart may silence the voice of reason.
- An investor may not understand what kind of crowd funding to prefer for their portfolio - loan, award or equity-based.