Optimizing equity crowdfunding investments

Optimizing equity crowdfunding investments

30 August 2021

EQUITY CROWDFUNDING

INVESTIMENTI

GUADAGNI

OTTIMIZZAZIONE

Throughequity crowdfunding the Italian entrepreneurial fabric is experiencing moments of liveliness and economic recovery. Thanks to this form of participatory financing, in fact, the private investor contributes to the real economy and indirectly the labor market. At the same time, however, it can enjoy great potential for economic return. Despite being high risk, investments in startups and SMEs also offer substantial returns.

Earnings

The economic return can be generated in two different ways: with the distribution of profits, based on the percentage of company shares that the investor has acquired. The decision to distribute dividends is in the hands of the company, which at the close of the financial statements can determine whether to distribute them; following the multiplication of invested capital, the ultimate result of the company's growth. In fact, an increase in the valuation of the company corresponds to an increase in the value of the share acquired by the investor.

It is possible that the company goes bankrupt or suffers a situation of financial distress or debt. In these cases the risk you run is to lose the capital invested and nothing more.

How to optimise investments

The foresighted investor can intervene to minimize the risk. But how? By adopting a strategy of investment optimization, i.e. by investing in companies selected by Consob-recognized platforms with a solid reputation, such as Mamacrowd, and by diversifying the portfolio.

The choice of the company to become a partner passes through the selection of the platform that hosts the equity crowdfunding campaign. In the case of Mamacrowd, as specified in the guide, the selection is a fundamental activity to find the most promising startups and SMEs to bet on.

On the other hand, diversifying your portfolio means distributing the capital available on different types of projects, so as to invest in different sectors and distribute the risk accordingly. Equity crowdfunding allows you to proceed in this way, offering the possibility to choose from a wide range of high-potential companies. The potentiality of the economic return increases as the number of companies in the portfolio increases, as well as the potential growth in value of some of them.

Mamacrowd proposes a varied offer that consists of startups, SMEs and real estate. It allows you to build a balanced and diversified investment portfolio.

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