Investing can be a daunting subject and many people believe that without a large amount of capital behind them, it’s impossible to get started. With new ventures such as crowdfunding, the investment sector has become revolutionised, opening it up to more new investors and making the possible opportunities more accessible to many. It’s important to note that this article is not financial advice and when investing your money, it’s vital to understand both your own risk appetite and financial situation. In this article, we will be looking at the requirements that come with investing in crowdfunding projects, how you could potentially invest in crowdfunding projects with small amounts of money and how you can get involved if you are looking to learn more. 

The Requirements for Investing in Crowdfunding Projects  

Much like other investment opportunities, it is vital to assess the level of affordability for each investor before they are permitted to invest in any crowdfunding project. When it comes to investing with LEOcrowdfunding, you will have to take the Appropriateness Test, which is part of our ‘Investor Readiness’ process. This is a series of questions that you will be required to answer before you can invest in any of our live projects which are currently on our site.  

Before going ahead with the test, we recommend reading through our website to familiarise yourself with the risk involved and decide beforehand what you can afford to invest. It would be particularly useful to read the Risk Warning and FAQs. This will ensure that you will understand all the questions correctly and help determine your risk appetite and affordability.  

When it comes to personal requirements, it’s important to understand that your capital is always at risk when it comes to investing, including crowdfunding projects. When you put your capital into equity investment projects, your capital is locked in for the duration of the project and you can’t withdraw your money prior to the potential return on investment pay-out. Equity investments are not considered liquid investments in this sense, these are long term investments, which means it could be a while before you see any return; which isn’t guaranteed. 

Can I Invest In Crowdfunding Projects With Smaller Amounts of Money? 

The simple answer to this question is: yes! Here at LEOcrowdfunding you can invest for as little as £100. This makes investing more accessible to everyone and gives more individuals a chance to grow their investment portfolio. We believe that Crowdfunding is changing the way businesses raise finance and revolutionising the way people invest in property. Crowdfunding platforms, such as LEOcrowdfunding, has the potential to bring together developers, landlords  and investors in a way that could possibly be beneficial for all parties. 

Being able to make investing more accessible is what sets crowdfunding apart. As well as being powered by the people, it’s also a more versatile way to get introduced into the investment world. When it comes to crowdfunding, if you have below £5k worth of capital that you are willing to invest, then you are able to take that small investment and diversify it across multiple projects. Once you’ve passed the Appropriateness Test and fully understand your risk appetite, you will be able to diversify your portfolio and invest in a few projects that are suitable for your investment type. You should bear in mind that you shouldn’t invest more than you can afford to lose. 

How To Get Involved 

If you’ve decided that investing in crowdfunding projects or equity-based investments is what you would like to do, then knowing how to invest is the next step. Firstly, have a look at the projects that are currently seeking investment. On our website, we have a ‘Invest Now’ section, which currently holds all our live projects, along with projects that are coming soon. Here, you will find all the information you will need, including who the fundraiser is, the property location, the purpose of the project, the financials and what the potential return could be on investment. From this, you can do your own research surrounding the fundraiser and ensure that you fully understand the project's timeline and potential returns and risks that come with it. You can also register your interest in the project. 

At LEOcrowdfunding we believe in the power of crowd validation. Through the use of our online forum, you can ask the Fundraiser direct questions regarding the project and also see what questions other potential investors have asked to help your understanding. 

We also provide case studies so that you can follow previous investment journeys and see how they worked, this will help you research how it works. Along with the current and upcoming projects, why not take the opportunity to read through our past projects as well?  

If a particular past, present or future project is of interest to you, then you can also register your interest so that we are aware of the type of projects which are popular with the crowd. If you have opted into marketing via your Account settings, we can also contact you when a project that is coming soon is available for investment or add you to our oversubscribe list if any pledged investors cannot proceed with their investment, as well as notify you if a similar project becomes available.  

Please note that past performance is not indicative of future results, potential investors should conduct their own research with regards to affordability, suitability and their own risk appetite.