As an investor, how do you manage your investment? Unit trust? Stock market? Real estate? Well, have you ever heard of equity crowdfunding?
Equity crowdfunding is a method for businesses to raise capital from crowd. Companies could sell a portion of the available equity to investors via the internet in exchange for development funds. And the entire process is transparent.
What are the benefits of equity investments?
Investors have the chance to be involved in potential business opportunities in the market and are able to support the most promising companies at an early stage.
1. Easy to Start
Equity crowdfunding is accessible to anyone interested in diversifying their investment portfolio. It's an online process, making it simple and convenient to begin. You need to research and compare platforms, ensure they are legal and credible, and complete the sign-up process. In Malaysia, Mystartr platform are regulated by the Securities Commission.
2. Low Minimum Investment
Equity crowdfunding allows everyday people to invest in startups with minimal capital. This low entry barrier makes it popular among average investors. For instance, Mystartr allows investments starting from as low as RM500.
3. Personalized and Diversified Investment Selections
Unlike mutual funds or unit trusts, equity crowdfunding lets investors choose which companies to invest in, allowing for personalized and diversified portfolios. Mystartr offers campaigns aligned with ethical standards and principles.
4. Potential for High Returns
Equity crowdfunding carries high risks but also the potential for high returns. If a company performs well and goes public, investors can sell their equity at a higher rate. Additionally, owning equity may entitle investors to dividends if the company profits significantly.
Let us share some real life success stories.
Before Apple went public, Mike Markkula as an angel investor anticipated its potential. He then exchanged 30% of Apple's equity with 92 thousand US dollars.
In 1980, the company was listed and as the shareholder, the total net worth of Mike Marcola reached 200 million US dollars. About 2,200 times more. That's why wealth comes from equity. Investing in companies equity to accumulate wealth and you can do it too. Another advantage of equity crowd funding is that you can choose investment packages based on your preference.