Coop Project

The key difference between the two is that hedge funds chase the big fish – investments that are high risk, high reward. Mutual funds, on the other hand, stick to the shallows where they can catch smaller but more reliable returns.

People can pledge money to creative projects, new pieces of technology, or any other product or service. The donors who fundraise for projects on the platforms receive incentives or rewards. When they donate their money to worthy projects or companies.

This allows investors to participate in partial ownership of a company and a percentage of the profits. These investors are very accomplished SME who use crowdfunding platforms to add to businesses’ success in the long term.

Most contributors who donate money through these platforms do not usually expect anything in return and contribute to a cause or organization that they support. In all cases, the ROI (return on investment) comes from personal satisfaction gained from contributing to a project.

Long ago, peer-to-peer lending meant asking for a small amount of money from loved ones to fund a business. This enables entrepreneurs and startups to get access to funds outside of the traditional loaning channels.