Three Factors to Consider Before Investing in Equity Crowdfunding


Investment is one of the most profitable ventures today as they have the ability of securing a lifetime income for an individual. One of the most popular ways of investing in new businesses or companies is through equity crowdfunding through AgUnity or other crowdfunding platforms. For a successful investment, there must be an understanding between business owners and investment and there are certain things investors especially beginners should have in mind before investing in a new project or equity crowdfunding as a whole and below are three important factors.

·         Use the Right Crowdfunding Platform
Crowdfunding is a popular medium of investment that has gained popularity over the years and one advantage it has over other medium is online-based nature. The first step to take for a successful investment in equity crowdfunding is to source for the best platform that offers transparency and access to thousands of new projects. Platforms like AgUnity has shown that factors like popularity, flexibility, transparency should be taken into consideration while choosing a crowdfunding platform.

·         Be Aware of the Risks
Before venturing into any type of investment, the risks associated with it should first be considered. For equity crowdfunding, it is important for investors to be aware of the possibility of the project turning out unsuccessful. Investing in a new startup just like starting a business also have risks with either profit or loss being made. Most startups fails and yield no returns to shareholders but some ends up being successful in a short amount of time. The problem of illiquidity is also one problem investors in equity crowdfunding faces as shares may not be  cash equivalent for a long period of time.

·         Consider Diversification
Beginners in equity crowdfunding are usually advised to consider diversifying their Investment plans and not solely focus on one projects. For this reason, platforms like AgUnity offers millions of project that may interest the investors. Choosing as many project as you can monitor is highly advised.


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