Friday 22 August 2014

Royalty Crowdfunding Campaign

Royalty Crowdfunding Campaign

Benifits of investing in a royalty crowdfunding campaign

Although equity crowdfunding ownership can be exciting,
it should be noted that many will never be profitable, and the ones
that are will likely not reach liquidity until years after the offering.
Royalty crowdfunding, although just as risky, lets investors
participate in a portion of future income. This creates the potential
for cash flow and the opportunity for the investment to start paying you
back earlier.


Comparing to a traditional investment portfolio, participating in equity crowdfunding
would be like buying stocks, and royalty crowdfunding would be buying
fixed income investments. For those participating in a lot of
crowdfunding investments, it makes sense to diversify holdings, and the
structure of those investment vehicles.


The Royalty Crowdfunding Business Model

There are a variety of extremely well ran businesses that will never
make it to an Initial Public Offering. A small fraction of ownership in
these lifestyle businesses will rarely ever turn into a multi-million
dollar investment, and thus would not make sense as an equity
investment. At the same time they do present a good opportunity for
royalty crowdfunding investments. Participating like this can be a smart
way to support a great business, while structuring the investment in a
profitable way.

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