What is Crowdinvesting and How Does it Work?

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What is Crowdinvesting?

Crowdinvesting is best summarised like this: crowd + investing = capital.

‘Crowd’ means people like friends, family, customers, and people who believe in your business model. ‘Investing’ means securing enough funds for your project, art, or growth. ‘Capital’ is what you need to get your project or business going or started.

Simply put, crowdinvesting is what happens when a network of people come together and decide to provide capital for someone’s business, art or project with the intent of seeing it realized. This approach to funding taps on the collective potential of many individuals and often rewards investors, donors, and backers with incentives, monetary or in kind. 

Why Crowdinvesting?

Because it’s usually faster and easier than the traditional, mainstream approach. Before crowdinvesting, you had to go through a lot of hoops and pitch your ideas to a small pool of individuals and institutions. Not everyone is a potential investor. Before crowdinvesting came along, your only option was to look and search for banks, accredited or angel investors, or venture capital firms, who were willing to provide you with the capital you need. That in itself eats up a lot of time and money – time and money you could have used to actually work on your project. And, if that capital ever came, it did with many strings attached.

Not so with crowdinvesting, tough. Crowdinvesting gives you a platform where ordinary people, who believe in your art, business or project can come together and help you generate the capital you need directly, without the aid of third parties and intermediaries. Together, they pool their contributions to give you the funding that you need.

Crowdinvesting, at the heart of it, is uninhibited freedom to invest and borrow.

How does it work?

Crowdinvesting is pretty simple. Visit a crowdinvesting platform, find something you want to invest in, send your money, and wait for results. The difference boils down to what crowdfunding sites you visit. The most common crowdinvesting platforms allow you to invest in a project or product in return for special rewards, usually in kind.

There are, however, royalty financing platforms like TFGcrowd that promise substantial financial gains in return for investments in money and trust. In general, royalty financing platforms function as loan originators, building quid pro quo connections between investors and businesses. Think of it in terms of traditional initial public offerings (IPOs), where investors enjoy profits from the company shares that they buy. Except it’s not traditional at all: you don’t have to deal with banking intermediaries, and you’re not beholden to the caprices of a few investors.

Why TFGcrowd?

Because we do better than the competition. TFGcrowd streamlines the crowdinvesting process for businesses and investors and makes it simpler, more straightforward, and more secure. As an investor, you get a hurdle-free investment path on projects that you believe in. As a business, you get tailored financing solutions that cater to your needs and your capability.


TFGcrowd is a community, where investors and entrepreneurs collaborate, develop fruitful connections, and grow together through mutual profit. Be part of our community today and enjoy glorious rewards later!