Compared with traditional bank loans, crowdfunding products are easier to obtain financing. The biggest problem encountered by many entrepreneurs in the initial stage of their business is insufficient funds and financing difficulties. Relying solely on bank loans cannot provide enough funds for investors.

Besides financing, it also involves the risk of repayment and whether there are long-term investors, which are all problems that entrepreneurs need to face.

Through crowdfunding financing, entrepreneurs will avoid these problems and bring many financial advantages to entrepreneurs.

A good way to obtain long-term financing.

Crowdfunding itself is a process of financing and entrepreneurship. The difference is that the main finishers of crowdfunding are investors, while entrepreneurship is entrepreneurs. It can be said that once an entrepreneur can get the capital investment from investors, it is equivalent to having a long-term supporter.

As long as investors ensure that their products and business plans can be carried out perfectly, they will not lose their investment confidence and obtain funds from investors for a long time.

Crowdfunding wealth management products have low risk. Stocks can get high returns, but the risks are also high. If you invest rashly without certain knowledge, you can only lose your blood.

Crowdfunding wealth management products are different. There is not much risk in this model, as long as investors choose the right wealth management products to invest. The threshold of crowdfunding wealth management products is low. Compared with the threshold of tens of thousands of bank wealth management products, there is basically no threshold limit for crowdfunding. You can participate as long as you want to invest.

This has attracted many investors to participate, which is also one of the reasons why crowdfunding wealth management products are popular.

Second, is crowdfunding risky?

Question 1: Is crowdfunding risky? For the classification of crowdfunding, I can divide it into non-equity crowdfunding and equity crowdfunding.

Non-equity crowdfunding is mainly manifested in product pre-sale. Mainly through the introduction of the project sponsors on the Internet platform, the funds of the supporters are obtained, and the return methods are mostly goods, books, music and so on produced by the project.

The main function of equity crowdfunding is financing. Your money provides start-up funds for some innovative enterprises and some small and medium-sized projects, and the return is the distribution of funds. Compared with non-equity crowdfunding, equity crowdfunding has greater risks, more funds and longer payback period, which requires a longer investment perspective.

Whether it is non-equity crowdfunding or equity crowdfunding, supporters will have certain risks, and the website does not bear risks and after-sales service.

Although non-equity crowdfunding may only spend tens of dollars in pocket money and pre-order new products, there may also be risks of not meeting expectations or not being able to deliver them. In addition, in addition to the long return period, some equity crowdfunding may involve raising funds and may touch the legal red line, which is also one of the risks that supporters need to pay attention to.

Question 2: What are the risks of crowdfunding investment? Crowdfunding investment in early projects. Compared with venture capital, the investment time has to move forward, so the failure of the project is relatively large. However, many crowdfunding platforms are leading the investment, which reduces the risk of the project to some extent. Secondly, how to help enterprises grow is also very important. In this regard, cloud financing has done a good job, helping investors add value and helping projects grow.

Question 3: What is the difference between crowdfunding and illegal fund-raising? Is crowdfunding risky? Equity crowdfunding is the crowdfunding model with the greatest legal risk at present, and the most likely crime involved is the crime of issuing stocks without authorization in the crime of illegal fund-raising (in a broad sense, the judicial interpretation of the Supreme Law on hearing illegal fund-raising defines false stock issuance and unauthorized stock issuance as the big concept of illegal fund-raising crime). There are two red lines that can't be touched, one is the public (the number is not limited because it involves unspecified people), and the other is more than 200 people (although some unlisted public companies have more than 200 shareholders).

So ... what's the difference between equity crowdfunding and illegal fund-raising?

Define the difference

Illegal fund-raising refers to the behavior that a unit or individual raises funds from the public by issuing stocks, bonds, lottery tickets, investment fund securities or other creditor's rights certificates without the approval of the relevant departments in accordance with legal procedures, and promises to repay the principal and interest to investors in cash, in kind or in other ways within a certain period of time.

Equity crowdfunding refers to the company selling a certain proportion of shares to ordinary investors, and investors get future income through investing in the company. This financing model based on internet channels is called equity crowdfunding. Another explanation is that "equity crowdfunding is the internetization of private equity"

Substantive differences:

There is a substantial difference between public equity financing and illegal fund-raising.

The criterion to judge the essence of the two is whether to promise to specify the return. Illegal fund-raising is usually based on a commitment to repay the principal and interest for a certain period of time, and the promised interest is often much higher than the bank's interest. Equity crowdfunding is to gather a group of friends with the same interests and values to invest and start a business together. Do not promise a fixed return, but enjoy shareholder rights and bear shareholder risks. Therefore, there is a great difference between the two in essential regression.

Impact on financial order:

Illegal fund-raising interferes with the order of financial institutions, and the operation of equity crowdfunding on capital expands the capital market to a certain extent, rather than disturbing it.

Only when the actor illegally absorbs public deposits and uses them for the operation of monetary capital (such as lending) can it be considered as disturbing the financial order, and equity crowdfunding is to invest in a physical project rather than operating capital, which is very different from illegal fund-raising.

Differences in distribution methods:

Illegal fund-raising takes the form of advertising, public solicitation, disguised public offering, etc. Equity crowdfunding takes advantage of the most sunny and positive side of the Internet.

Equity crowdfunding websites do not use advertising, public solicitation, disguised public offering and other means to promote projects. Project information is compiled by entrepreneurs' understanding of their own projects. The platform does not make substantive judgment, but only shows it to investors after the judgment is false and appropriate, and does not participate in a lot of publicity, advocacy or collusion with the project party. This is different from the propaganda of illegal fund-raising. The most important reason is the publicity of equity crowdfunding information.

The difference of risk control:

Another important difference between illegal fund-raising and equity investment is the different degree of risk control of investment.

Illegal fund-raising is often initiated by individuals, who gather a lot of money and invest in several projects that borrowers don't know, and promise to make profits. In the Internet age, the information of each project is made public through crowdfunding websites. Investors can eliminate the information asymmetry difference between entrepreneurs and investors through Internet information, which is open, transparent and sunny, and the information can be found at any time. Entrepreneurs can keep in touch at any time, which greatly reduces the risk.

Legal protection:

The most important point is that equity crowdfunding ultimately invests in projects in the form of limited partnerships and is protected by law.

Equity crowdfunding is to invest in the project in the form of "leading investors and investors". When the lead investor is entrusted by the investor to do due diligence, he will issue a report and be responsible to the investor. The two parties will set up a limited partnership to invest in the project on the basis of equality and voluntariness. The information is thorough, the risks are diverse, the income distribution is clear, and it is completely open and transparent, which is completely different from the uncertainty and information asymmetry of illegal fund-raising.

Question 4: What does Taobao crowdfunding mean? Is there any risk? Although crowdfunding is a very mature investment model abroad, it is still in its infancy in China. Despite this, many crowdfunding platforms have emerged in Internet finance. I think these three risks are hidden behind these crowdfunding platforms.

1. Legal risk: Some insiders have analyzed the operation mode of crowdfunding websites and found that it is very similar to the description of the crime of illegal fund-raising. In fact, the blank of P2P and crowdfunding related laws and regulations is precisely the biggest market risk.

2. Risks of the project itself: Anyone familiar with venture capital knows that in the high-risk market of high-tech entrepreneurship, it is never hot money, but a good project.

3. Operational risk of crowdfunding website itself: For a crowdfunding website, it is only the first step to raise scattered funds from ordinary users, and then it will be responsible for supervising, executing and ensuring the successful operation of the project as scheduled together with the project operator. Is the value and difficulty.

These three risks are naturally the risks faced by Taobao crowdfunding, but in order to protect the rights and interests of investors, Taobao crowdfunding has taken some measures to avoid risks:

1. In order to ensure the quality of the project and the interests of the participants, Taobao Crowdfunding will strictly review and screen the project sponsors and supervise the amount of funds raised. During the fundraising period, the buyer can apply for a refund at any time; If the fundraising is unsuccessful, the raised funds will also be returned to the investors.

2. The funds involved in pre-purchasing through Taobao crowdfunding platform will be guaranteed by a third party. Only when the sponsor pays the return according to the agreement and the supporter confirms the receipt can the sponsor get the funds paid by the supporter in full. In addition, Taobao crowdfunding platform will introduce commercial insurance to underwrite the behavior of sponsors, further reducing project risks and protecting the rights and interests of supporters.

Now many after-sales problems are not perfect, so it is recommended not to buy them.

Question 5: Is there any risk in crowdfunding and how to avoid it? The classification of crowdfunding can be divided into non-equity crowdfunding and equity crowdfunding.

1, non-equity crowdfunding

Non-equity crowdfunding is mainly manifested in product pre-sale. Mainly through the introduction of the project sponsors on the Internet platform, the funds of the supporters are obtained, and the return methods are mostly goods, books, music and so on produced by the project. At present, non-equity crowdfunding websites are well-known such as Times, Dream Chasing Network, Taobao Xingyuan, Crowdfunding Network and so on.

2. Equity crowdfunding

The main function of equity crowdfunding is financing. Your money provides start-up funds for some innovative enterprises and some small and medium-sized projects, and the return is the distribution of funds. Compared with non-equity crowdfunding, equity crowdfunding has greater risks, more funds and longer payback period, which requires a longer investment perspective. For example, Xu Xiaoping once invested in Jumeiyou as an angel investor. Of course, he also has many cases of failure. At present, there are angel exchange, big investment, venture capital circle and other equity crowdfunding websites.

Whether it is non-equity crowdfunding or equity crowdfunding, supporters will have certain risks, and the website does not bear risks and after-sales service. For example, the risk warning of "Taobao Xingyuan" is as follows.

Although non-equity crowdfunding may only spend tens of dollars in pocket money and pre-order new products, there may also be risks of not meeting expectations or not being able to deliver them. In addition, in addition to the long return period, some equity crowdfunding may involve raising funds and may touch the legal red line, which is also one of the risks that supporters need to pay attention to.

Question 6: Is crowdfunding investment risky? Yes, many financial institutions in China are not standardized and are blinded by high interest rate returns, so they are deceived. I suggest that if you want to invest, you'd better find a big institution.

Question 7: Is crowdfunding risky? Of course, there are risks, mainly legal risks caused by illegal fund-raising and shareholding.

Question 8: How safe is crowdfunding? What are the risks? As a connector of commercial wealth between consumers and enterprises, EGD allows consumers and enterprises to share the distribution of commercial profits. The total amount of online gold is limited, and it is highly secure, so it cannot be faked. It can completely become a part of personal assets like financial assets and physical assets. The integral appreciation effect based on the limited amount will greatly improve the promotion and marketing efficiency of merchants, transform consumers' natural consumption into natural income, and give consumers a connection with commercial wealth.

Question 9: What does crowdfunding mean? What are the risks and functions of crowdfunding? It refers to the mode of raising project funds from netizens in the form of group purchase and pre-purchase. Crowdfunding uses the characteristics of the Internet and SNS to let small businesses, artists or individuals show their creativity to the public, win everyone's attention and support, and then get the needed financial assistance.

Modern crowdfunding refers to issuing fund-raising projects through the Internet to raise funds. Compared with traditional financing methods, crowdfunding is more open, and whether to obtain funds is no longer based on the commercial value of the project. As long as it is a project that netizens like, they can get the first fund of the project through crowdfunding, which provides unlimited possibilities for more small-scale operators or creators.

Crowdfunding is risky and I hope to invest cautiously.

Question 10: Is crowdfunding risky? Equity crowdfunding refers to the company selling a certain proportion of shares to ordinary investors, and investors get future income through investing in the company.

Third, is crowdfunding financial management reliable?

That depends on what it is. If it is equity crowdfunding, the income is still very good, but there are also risks. If it is pure crowdfunding, these are basically Ponzi schemes.

If you want to participate in crowdfunding, you still have to raise funds. Crowdfunding in the Central Plains and JD.COM is still quite good.

Fourth, is crowdfunding financial management reliable?

It is safer to choose a large platform.

However, many of the investment targets of crowdfunding are venture capital projects, and the investment risks are relatively large.

If your problem is solved, please adopt it. Thank you!