Crowdinvesting vs. Crowdfunding


What Is the Difference between Crowdinvesting and Crowdfunding?

In the media, the terms crowdinvesting and crowdfunding are often used synonymously. Even though both are similar ways of financing, they differ greatly in some aspects. Both refer to financing by the crowd.

Now, let us look at the differences:


Crowdinvesting (Equity-based Crowdfunding)

Crowdinvesting is equity-based crowdfunding. In the case of equity-based crowdfunding – the type used on Companisto – users invest in a start-up and receive shares in return. Investors become shareholders of the start-up and benefit from the profits of the start-up and from the possible sale of the start-up to a large investor (also called “exit”).

There are many different motivations to participate in equity-based crowdfunding. While some people simply want to support a good idea and its implementation, other microinvestors primarily focus on financial aspects, especially participation in the sale of the company.

In a very general sense, it was not possible for private individuals to invest in start-ups in the early stage before equity-based crowdfunding was introduced. This has now changed because of equity-based crowdfunding on Companisto. Equity-based crowdfunding also enables private individuals to participate in start-ups by means of small (or large) investments.


Crowdfunding

In the case of traditional crowdfunding, users receive no shares in a start-up but a symbolic return, for instance a CD.

Crowdfunding is (still) more widely known than equity-based crowdfunding. This is simply due to the fact that this phenomenon has existed for a longer time. To be precise, it has always existed. 

In the case of crowdfunding, people cooperate to finance a specific project, which is usually charitable or artistic and probably would not have been realized without the crowd. If there is a return in the case of crowdfunding, it is non-monetary. Thus, crowdfunding may be compared to a kind of donation. People help other people realize a project and are motivated by altruism. 

To be precise, composers such as Mozart and Beethoven already used crowdfunding to finance their concerts and compositions – by means of a priori subscriptions that offered donors exclusive access to the works as a reward.

At the beginning of this millennium, crowdfunding platforms like Artistshare and SellaBand, which can be used by fans to support their favorite artists in exchange for CDs or access to exclusive concerts, came into public focus.

In the U.S., the home of crowdfunding, the two platforms Indiegogo and Kickstarter helped crowdfunding make a breakthrough. Projects such as Pebble received millions of dollars in funding on these platforms, and donors usually receive a sample of the crowdfunded product.

Current Investment Opportunities

itravel
itravel is the first digital travel agency that uses data analysis, artificial intelligence, and block chain technology in order to provide customers with individually personalized trips. Several prominent investors,... Mehr Info
120%Funded
19Days
600,900€Invested
Nepos
The Nepos tablet and its universal user interface enables the 65+ generation to enter the digital world. More than 300 test users have accompanied the development process. Nepos created the world's simplest tablet for... Mehr Info
66%Funded
30Days
332,700€Invested
Caterna
The Caterna Vision Training is a telemedical procedure developed as a medical product that treats the visual impairment called lazy eye (amblyopia) among children through computer-assisted therapy. 300 doctors have... Mehr Info
35%Funded
11Days
159,100€Invested
Rydies
With up to 20 years of experience in the mobility industry, Rydies' founding team offers a solution for the fragmented and disconnected micro mobility market. This makes Rydies the first solution for digital &... Mehr Info
28%Funded
64Days
112,100€Invested
More Investment Opportunities
Please note
The acquisition of this asset involves considerable risks and can lead to the complete loss of the assets used. The expected yield is not guaranteed and may turn out to be lower.
Contact Us
If you have any questions about investing on Companisto, please contact our service team:


Toll-free phone number for investors

0800 - 100 267 0 (DE)
0800 - 100 267(AT / CH)

We are available Monday through Friday between 9 a.m. – 7 p.m.

For companies
Apply for financing Investment Model FAQ for Companies
Investor Support