6 tips to guide amateurs crowdfunders make a well weighed-up decision

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Attractive and tempting rewards are the biggest reasons that make crowdfunding a hotspot. Every individual, who has some clue about crowdfunding, contemplates becoming an investor with the little or big saving that they have. However, a wrong decision can turn out to be expensive.

This technology is disruptive and is fast becoming famous and getting admired amongst the millennial generation. Besides, lately, it is getting very popular within the circles of seasoned investors as well.

Importantly, crowdfunding is no more a fundraising method that is majorly used by start-ups, budding entrepreneurs, and new ventures; even the multinational companies and established organizations as well are using this tool eagerly. The crowdfunding market is getting more and more innovative and attractive and is pulling people from all the walks of life to try it.

Therefore, here we are, with a couple of tips to guide the amateur crowdfunders make a well weighed-up decision:

  1. Pick the platform carefully: Crowdfunding is a sunrise industry, and therefore obviously, the number of crowdfunding platforms is on a continuous rise. With such a crowded market, it is important to take some time and carefully choose a platform. Every platform is different with their unique terms and provisions. Pick a platform that suits you best and has a good track record.
  2. Invest your spare money: Never-ever go on putting all your hard-earned money solely into crowdfunding. Consider it as one of the investment options in your portfolio. Though, crowdfunding has a reputation of helping people earn quick money; best practice would be to put only that much sum into it that you can keep blocked for a couple of years.
  3. Monetization of the idea is important: Getting impressed by a revolutionary idea and investing in it can put you into unwanted situations. Always try to find out the monetization model behind the idea. Invest in a business only if you are convinced that the business has a potential to earn money. After all, any organization will need to earn money at the end of the day for its survival and growth.
  4. Evaluate the people behind the scene: Knowing the founders is not enough. Find out as much as possible about the team members of the company and their role in the organization. An enterprise made up of skilled, experienced, and committed people is sure to win.
  5. Read through the terms and conditions: Before you click the ‘I agree’ button, make sure you have read in and out of all the terms and conditions concerning the investment. It might not be the most exciting part of the whole process, but, it is definitely the most important one.
  6. Please diversify: Like you diversify your investment portfolio, do diversify your crowdfunding portfolio as well. Pick up companies that will give you sure shot returns, as well as, take up a few options that though risky will give you hefty returns. That will help you average out your returns out of your crowdfunding ventures.

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This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated byCoAssets.com. CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please [email protected]

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