What is crowdfunding?

Crowdfunding is an alternative way of financing a project without the use of financial intermediaries.

Typically a project only receives the money if the full amount is financed. If that is not the case, then the funders get their committed money back.

There are several forms of crowdfunding: donations, loans, equity, profit-sharing, or rewards based. The two most important ones are:

  1. Through a donation; (sometimes a product or a small gift is gifted in exchange for the donation)
  2. Through the disbursement of a loan or by buying shares

Through our website you can collectively invest in  small and medium enterprises (SMEs) in emerging countries, through a local partner based in the country of the SME. The main advantage of this structure is that the local partner will cover the risks of defaults of the SME's and currency exchange. This structure enables us to provide fair interest rates to the SME's and you receive a healthy interest as well.

Crowdfunding

The term crowdfunding has not existed very long. In the Netherlands, this form of financing has gained momentum in the last five years. In times where banks have limited the loans they disburse, crowdfunding has proven to provide a solution for this financing problem. Furthermore, the average savings-rate seems not to be interesting enough to grow your capital. Crowdfunding offers often an interest rate somwhere between 4-6%, which makes it an interesting alternative for putting your money away for a fixed period. In the Netherlands, most of the websites focus on investing in a concept or in a company. The basics of an investment are very clear: invest in a company to maximize interest. In the Dutch landscape, donation-based crowdfunding is less common.

Advantages Lendahand

Statistics

€46,226,370

Total invested

2411

Entrepeneurs funded

5750

Jobs created

9.0

Average rating

Media and Partners

Most recently funded project

Riziki Fresh Limited

With EUR 74,000 Riziki can cushion their farmers against delayed payments by ensuring that they pay their farmers within 24 hours. 

  • Local partner investment
  • 2 new jobs
  • 10 people reached

€74,000

Amount

12 months

Maturity

6.00%

Annualized interest
100%
Fully funded in 1 hour on 20 February 2019.