Crowdfunding

Crowdfunding

This is where a large number of people fund a company, often a start-up, through an online platform. Equity crowdfunding is where people invest in exchange for a share of the business (equity). The value of your stake could go up if the venture is successful or down if it is not.

Backing your hunch that Korean restaurants will flourish may seem appealing but investing in start-ups is particularly risky and it can be hard to get your money back, even when the business is doing well. You may need to wait for the company to list on a stock market first, which should turn your stake into shares. Some platforms offer secondary markets in an attempt to help you get an earlier exit. 

 
 
Credit score

Credit score

Diversification

Diversification