The term investment usually refers to the investment of funds into enterprises or projects in exchange for financial returns. Investors usually buy securities such as stocks, bonds or investment funds to get financial returns. Crowdfunding is a way of raising funds, which usually attracts a group of people to invest in ideas, projects or enterprises on the Internet to obtain financing funds.

There is a significant difference in risk between investment and crowdfunding. Investment companies and securities can be traded in the securities market, which can realize the liquidity of investors and spread risks, but it also increases the intimacy and emotional load with investors. On the contrary, crowdfunding projects are usually privately developed, which are not easy to circulate and have high risks. When investors invest in an enterprise, they gain direct contact and ownership with the enterprise. However, crowdfunding people do not necessarily get similar rights and interests, and usually just let the raised funds feed back the development of the project.

The third paragraph: the correlation between investment and crowdfunding.

Although investment and crowdfunding are very different in essence, there is also an interactive relationship between them. Crowdfunding often only makes up for the bottleneck problem of financing for start-ups. When a start-up enterprise develops to a certain scale, it usually needs financing, which is an opportunity for investors to enter the market. On the other hand, if investment companies find that crowdfunding companies have potential value, they can gain more rights through investment to improve their returns. It can be predicted that with the continuous development of society, the relationship between investment and crowdfunding will become closer and closer.