How equity crowdfunding works

Equity crowdfunding is a form of investment that allows all investors (from small savers to "institutional" investors) to become shareholders in companies (innovative and non-innovative) by acquiring a stake in the company's capital.

INVESTING IN THE "UNLISTED"

Investing in an unlisted company means participating in the development of new entrepreneurial activities, contributing to the development of the real economy and the labor market, aiming to gain in the medium to long term from the increase in the value of the company in which one has invested and reselling at a higher price the shareholding purchased at the time.

On Mamacrowd it is possible to invest in companies (both innovative and traditional) and real estate projects.

This heterogeneity allows for different risk profiles and opportunities, which enables us to create a diversified investment portfolio.

EARNING WITH EQUITY CROWDFUNDING

The financial return comes in two forms:

• The distribution of profits, in which the shareholder participates when they are produced and distributed, based on the percentage of company shares he or she has acquired
• The multiplication of invested capital, generated by the growth of the company. Acquiring a share in a company when its valuation is still low allows us to bet on the fact that, once the valuation grows as a result of the process of consolidation and growth of the business project, the share initially acquired will also increase in value

In successful cases this parameter can be very important and the economic return relevant.

THE RISKS

What if things go wrong? The worst case scenario that can occur is the failure of the company. In this case, as in any other situation of financial distress or indebtedness of the company, the risk to the investor is limited to the loss of the entire capital invested; no other capital contribution can be required or owed by the partner. See the "Risk Warning" page for more information.