“Crowdfunding” is a relatively new concept, according to which projects or products are financed by a large number of people. Investments can be promoted by forms of remuneration or by a return on the investment, but some investments also come in the form of donations.
The term “Crowdinvesting” originated from the two words: “Crowd” and “Investing”, which means that many investors come together on the Internet to contribute to large projects by forms of investments. Unlike other types of crowdfunding there is a focus on achieving a return on investments. This type of project financing enables private investors to participate by investing small sums on projects that were previously only available to selected high net worth investors.