The changing world we live in:
Globalisation has affected the way we lead our lives now. It has led to businesses adapting to the way they conduct their affairs but also people are now more connected with not only their friends and family members but also in making connections to people they have never come across beforehand.
With globalisation the opportunity is also present for people to look at ways to invest money in a number of ways.
One question to ask however is what is it that has aided globalisation over the last few years. The answer to this query is more than likely at the tip of our fingers; the Internet.
The Explosion of the Internet:
The Internet really came to fruition at the change of the millennium where the innovation over the last few years really helped put the hardware in place which allowed consumers to consume data over the internet in a cost effective way. With the mass population now being able to afford a personal computer the prominence of the Internet rose incredibly. This obviously has led to a number of opportunities for people with all types of interests.
Obviously one of the biggest advantages for the Internet is that the possibility to do business has risen considerably. The Internet has allowed entrepreneurs to perform business activity in a more efficient manner than in any other form previously available.
Taking advantage of a thriving business scene
With the internet being such a pivotal tool in today’s environment there is no surprise that businesses are looking to expand or begin trading in today’s environment. With entrepreneurs continuing to look at new business opportunities there is no surprise that there is a funding requirement that is always present.
Previously businesses that were looking to expand depended on preparing a proposal for the banks and wait for them to provide the finances to either grow their business or to begin one.
However, since 2008 the world has been in a recession and this has raised a lot of concerns for the financial institutions as problems have gathered for them collectively. As a result these financial institutions have been unable to mount a serious option for businesses looking for financial support.
The growth of Crowdfunding
This is where Crowdfunding has come in and serving the demand in the market. Beforehand if an arts supplier wanted to do something creative they would probably have to look for a grant from somewhere. Crowdfunding has changed that mindset.
Peer to peer lending, as crowdfunding is often referred to is an avenue in which people can raise capital from getting contributions from a wide range of investors. The crowdfunding platforms mainly exist in the form of online websites and work in a way by allowing investors to lend businesses money over the course of a fixed time. With the philosophy of crowdfunding being embedded more and more in the mind set of people the real possibility of people using crowdfunding as a real investment opportunity is also a more viable one.
Most crowdfunding opportunities are businesses which are vetted considerably and offer healthy returns, as with any investment the more a user invests the more return they are set to receive.
When investments are made in a crowdfunding opportunity it is often made along with a series of other people as well. Normally in an investment, like a business investment or a loan to an acquaintance there is a risk that the investment may not yield enough returns. However, historically, projects and businesses that are getting funded by crowdfunding platforms are becoming successful ventures. Reason for this is the publicity they get whilst being on a platform allowing their brand to be recognised but also the actual investors themselves become more aligned with the product and either actively or inactively become brand ambassadors helping the marketing activity for the service.
With crowdfunding websites using language translator tools now the exposure that they are aiming for now is becoming more global. So investing in a business can make more healthy returns for any savings that you may have.