Why crowdfunding is only a stepping-stone on the path to successful global investment

*This content is brought to you by Wealth Migrate

Crowdfunding involves getting many people to club together to fund a project or venture; this alternative type of finance is also a form of crowdsourcing.

It is usually performed online and there are generally three groups involved in the process – the project initiator who proposes the idea and/or project to be funded; the individuals or groups that support the idea; and a moderating organisation that brings the parties together to launch the idea.

But no one – whether on their own or as part of a group – will be willing to hand over cash without having a thorough understanding of where that cash is going. When it comes to research, product knowledge and market analysis are crucial. Once you have established this, you need to fully understand the value proposition and the correlated risks of the venture.

Before committing to an investment, you need to do some research to make sure that everyone involved has the relevant knowledge and understanding. If you have decided to join others to invest in a new office block in London, you need to know that there is room in the market for another office block in the suburb where it is located as well as understanding how the UK may be affected by Brexit and the move of some company head offices to Europe, for example.

If you are planning to invest in something that requires help from others, then you are probably talking something big and potentially risky. This is when it makes sense to include a professional into the mix. Wealth Migrate’s GIDDS System, for example is a globally recognized system that helps investors get access to partners in the right markets while also helping them understand and ascertain the risk/reward correlation to ensure they make the best investment decisions.

You might discuss with the other members of your crowdsourcing group to get to know who they are and what they bring to the table, but how reliable is that information? Again, having access to objective information that is both accurate and objective is crucial. You want information that is balanced and does not come with a regional bias. You need to know you have the right local partners in the markets you invest, and they must illustrate their faith in the project by being investors in it too.

Even if you have the help from others in a crowdsourcing scheme, building a network of local, trustworthy partners can take time. However, you can tap into Wealth Migrate’s Trusted Global Real Estate Marketplace, which the platform has been building for more than 20 years.

Crowdsourcing is a good start, but to really go places and reap the rewards of global investing, you need to know that you are have a trusted partner.

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