What is crowdfounding?
Posted on 22/07/2020
If you are thinking about starting a business but do not have the necessary money, it is important that you know that there are several forms of financing.
You can go to a bank loan, borrow money from a family member or friend, or take a new alternative, crowdfunding.
Crowdfunding, what is it?
It is one of the biggest revolutions in the financial world in the last decade. In this type of financing, thanks to the Internet, you can receive resources from various places in the world.
Funding can be in the form of grants, pre-sales, group loans, or the sale of small business stocks.
Panorama of crowdfunfding in Colombia
Through Decree 1357 of 2018, collaborative financing was regulated in the country. This activity must be carried out by entities authorized by the Financial Superintendence of Colombia.
Interfaces, platforms, internet pages or other electronic means can be used to connect the contributors with the recipients who request financing for their investment project.
It is important to bear in mind that crowdfunding applies, in our country, to productive projects, which -according to the Decree- "are those developed by legal entities in order to obtain economic profitability from business, agricultural, industrial, or commercial activities or services ”.
How does it work?
In general, entrepreneurs send their project to the entities or platforms that promote crowdfunding.
There they must specify what the investment project consists of, how much money they need, what is the term and the profitability for people who decide to invest in the project.
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