ADM 2313 Lecture Notes - Lecture 8: Accredited Investor
5 Jan 2018
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> crowdfunding efforts may also treat funders as investors, giving them equity stakes or similar consideration in return for their funding. > start-ups requesting support and resources from other investors in exchange for interest. > similar to acquiring a traditional bank loan, but often with competitive and lower interest rates, with more exibility and options to secure resources. > investors can work with various debt instruments when entering into a debt- based crowdfunding agreement. > it is also called peer to peer (p2p) lending . > a way for individuals to directly lend money to small businesses, platforms are e. g. syndicate. > terms of maturity, typically between 3 to 5 years. > at the end of the term, the investors receive back their initial investment plus a lump sum of interest. Crowdfunding seems like a double-edged sword for building an enduring business:
