Equity crowdfunding is basically an investment. So the same factors that you need to keep in mind when making an investment, such as duration, return and risk will remain important in this type of investment as well.
We all know that crowdfunding is done online. Just the fact that it is online does not make you choose investments that offer significantly lower returns. In fact, because the process is online, you might want to see a higher return and a stronger level of security behind the deal is presented.
All you are required to do is find the best P2P lending platforms for peer to peer investing or crowdfunding.
While 2 million is a significant amount for early-stage startup funding, it's not a huge amount for real estate projects. The second issue is that we are in an era of unprecedented liquidity.
One prominent local developer told me, "We have money coming out of our bums!" The only developers who beg for a small number are those who do not have the credibility to secure the funds.
This is a classic "Lemons" problem of Economy. You do not want quality projects of non-registered on the platform, if the first few projects go belly up it will destroy forever crowdfunding platform in UK.
So if we are going to make real estate crowdfunding investment, the registered projects must be from quality developers. These are usually bigger projects which have the advantage of securing a qualified project managers, auditors etc. that give a better chance of success.