A simple answer to your question of ‘what is crowdfunding?’ Crowdfunding is where a large number of people give a small amount of money each to fund a project and is offered only over the internet. Here, we will go into more depth on crowdfunding and how it works. For more information on crowdfunding with us at The CAM Crowd.
What is Crowdfunding?
When people need to raise money for a project or business idea sometimes they will try crowdfunding as a way of raising the money. It used to be that you would have a few people back your business ideas with large sums of money each; however with crowdfunding lots of people can become involved, all with small amounts of money, until your target has been raised. Here at The CAM Crowd
, we are a place where you can advertise a project that requires crowdfunding or you can invest in projects with us that you believe in and want to see happen. This can be anything from a product that somebody would like to launch to a whole business idea.The CAM Crowd
will only list debt and equity crowdfunding projects, we do not offer charity or donation based schemes for our investors.
There are different types of crowdfunding, not all are available on The CAM Crowd
- Donation / Reward Crowdfunding – Donation crowdfunding is where people will donate to a project because they simply believe in the cause and it might be something they’d want to try or experience when the crowdfunding is a success. Reward crowdfunding is where the donator will receive a little gift once the project is a success or it is to simply feel good about themselves for donating to a good cause.
- Debt Crowdfunding – Debt crowdfunding is where an investor will invest money on the condition that they get their investment back with interest. This allows you to make a return on your money whilst also investing in something that you believe in. Traditionally, you would get taxed on the interest that you would make on your investment however, in 2016, a new ISA was launched which is called the Innovative Finance ISA (IFISA) and allows you to invest in certain types of crowdfunding bonds whilst receiving tax-free interest on investments up to £20,000 a year. Here at The CAM Crowd, we have an IFISA available.
- Equity Crowdfunding – This type of crowdfunding is where an investor will invest their money into the proposed project in exchange for a small share or stake in the business. Once the business kicks off after the crowdfunding has been completed, the value of their share can go up if the business is successful. But it can also decrease in value if the business doesn’t become successful and an investor may lose their capital altogether if the business idea fails.
Crowdfunding Projects at The CAM Crowd
Here at The CAM Crowd
, we regularly have new crowdfunding projects that we advertise on The CAM Crowd
. We can offer a range of investments
from new start-up companies that have little or no track record through to more established firms or groups of people. All our projects come with details on the proposed or established business, projections and forecasts and often offer security where they are seeking to raise finance through a bond offer. All investments with crowdfunding come with their own associated risks and The CAM Crowd cannot regulate each level of risk with all different investments. The CAM Crowd
lists debt and equity crowdfunding projects.
IFISA at The CAM Crowd
at The CAM Crowd is available for your investments in certain types of bond that our projects offer. You can buy qualifying crowdfunded bonds that once invested means you receive tax-free interest every year. You can deposit a maximum amount of £20,000 per year into your IFISA or even transfer other ISA’s you may have into the IFISA. The IFISA
here at The CAM Crowd
allows you to withdraw any earnings you may have without it affecting your general tax-free allowances.
Finding Out More Information on Crowdfunding Projects
If you would like to find out more information on a range of crowdfunding projects at The CAM Crowd
, simply visit The CAM Crowd
. Not only can you find more information, but we can help you list a crowdfunding project of your own. We strongly advise that you get advice from an IFA before investing money with any projects that may be listed with us and would warn you that your investments in either bonds or equity are NOT covered by the Financial Services Compensation Scheme
The CAM Crowd
will not advise you or carry out a suitability assessment for you in regard to your investment and is only available to answer questions you may have around the workings of the website, not the offer. If your investment fails for any reason the coverage of the FSCS will not apply. Cadogan Asset Management Limited is authorised and regulated by the Financial Conduct Authority, however the activities carried out through The CAM Crowd are not, in the main, deemed regulated activities and no inference can or should be made that as Cadogan are authorised and regulated your investments with The CAM Crowd qualify for FSCS coverage.