Crowdfunding, as a business model and financial alternative for those who wish to enter the world of investments, is a market that has registered positive growth in recent years.
According to the study “Crowdfunding: Strategies & Impacts for Technology Markets 2016-2020” by the consulting firm Juniper Research, investments made in technology through crowdfunding platforms will reach $8200 million in 2020, a figure seven times higher than the total invested in 2015.
Discover all the latest breaking business headlines on crowdfunding. Browse the Born2Invest mobile app complete collection of articles and commentary on crowdfunding.
This form of project financing will see significant growth during this year. Against this backdrop, M2Crowd, Mexico’s real estate collective funding platform, highlights the following trends that people will be able to observe during 2020 in collective investments.
Crowdfunding is a model that has gradually allowed ordinary people to place their savings in different projects to save and obtain returns from them. Given the growth of supply in this market, micro-investments have opened the doors for more and more people to deposit capital from very small amounts. During this year we will see an increasing number of projects accessible to the general public.
Beyond cryptocurrencies, blockchain has been adopted by different markets to reinforce the security of its users’ data. In an industry such as crowdfunding, where the protection of personal data is fundamental, the use of this technology is becoming more and more frequent to guarantee that information will never be lost or altered. It will progressively become a standard within the industry.
Mexico is one of the countries in Latin America where the regulation of new technologies and platforms is advancing faster to guarantee fair participation of all the actors involved. In the case of the fintech law, there is already a clear framework that protects users of collective funding entities and the operations carried out in the country. As the market grows and more people join the crowdfunding, regulations will adjust to the dynamics of the companies.
Probably people’s greatest fear about collective funding is the fate of their money, and whether there is any mechanism to protect it. Crowdfunding platforms know about this situation, so there are increasingly comprehensive processes for assessing the risk and viability of the projects they make available to users for funding. Investment in project analysis and auditing will increase this year to ensure that the objectives of each funded project are met.
Real estate projects
Until a few years ago, investments in real estate were limited to large real estate funds and real estate trusts. Crowdfunding made it possible for smaller investors to access this market through projects that require much smaller amounts than the traditional industry. This segment of the market will grow an estimated 30% by 2020 and is expected to maintain this pace in the coming years.
Crowdfunding is handled with administrative structures and operational much less than those of the banks and other intermediaries such as the Savings and Loan Cooperatives – SOCAPs. It also supports the “micro patronage” of thousands of investors and campaigns that make it possible to have more low for some and higher for others attractive to others. As an emerging model, it shows exponential growth in the years and therefore bursts in markets that don’t even have relevant legislation.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in TyN MAGAZINE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Invesco: Factor Investing Minimizes ESG Losses
The quantitative factor model is highly appreciated by investors. 66% of investors already consider this approach useful for implementing their...
Desafío Latam Raises US$ 660,000 to Enter Mexico
In its eight years of operation, Desafío Latam exhibits sustained growth figures and metrics that generate impact in the booming...
Dock Financial Acquires a Stake in Compeon – and Wants to Sell to Its Customers
According to Dock Financial and Compeon, the joint offering has already been tested in a pilot phase and will be...
Cardano (ADA) After the Vasil Upgrade – What Has Changed
Vasil for ADA will provide further improvements to the ecosystem this Tuesday (September 27th). That is because, as planned, it...
Corn Demand Needs to Hold to Keep Lower Ending Stocks Estimates in Play
Corn closed lower on Friday and near unchanged for the week as the US Dollar moved sharply higher and as...
Business2 weeks ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 37]
Business5 days ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 38]
Featured2 weeks ago
Fintech Company Yokoy Has Been Chosen as the Startup of the Year
Featured2 weeks ago
Algorand Partners with Bocconi to Establish Algorand Fintech Lab