By J.P. Dahdah, Founder & CEO of Vantage
Ever wonder what the noise about crowdfunding is all about? Why are so many people jumping on board?
In this post, we’ll discuss the top reasons that investors are participating in crowdfunding and who the primary investors are.
Key Drivers of Investor Crowdfunding Participation
Survey data released by The Crowdfunding Professional Association (CfPA) in November of 2013 indicated the top reasons for crowdfunding participation, in order of response rate:
- Return on investment–33%
- Helping businesses gain access to capital–20%
- Being part of something greater than oneself–20%
- The ability to make a difference in the life of an entrepreneur–17%
Who is Participating?
The CfPA survey included entrepreneurs, investors, financial intermediaries and a small number with an unspecified category. Of the investors who responded, a seventy-one percent (71%) majority were unaccredited, indicating a high level of interest on the part of the average American.
Another 2013 survey conducted by the American Dream Composite Index examined the demographics of general crowdfunding investors.
- Age – Individuals ages 24-35 were much more likely to participate in crowdfunding campaigns
- Gender – Men are much more likely to invest in start-up companies
- Income – Those earning over $100,000 per year are the most likely to invest in start-ups through crowdfunding
As the American public becomes more aware of crowdfunding as an alternative investment opportunity, the demographics noted above are beginning to shift to include a broader age, income and gender group. The ability to pursue returns based on loan interest and company equity is meeting the demand for alternative investments sought by people from all walks of life.
A popular source of crowdfunding investment dollars is the Self-Directed IRA. A Self-Directed IRA will allow participants to direct their retirement funds to a number of alternatives including real estate, oil and gas and crowd funding. To learn more about the types of alternative investments available to you, including crowdfunding, contact Vantage Self-Directed Retirement Plans today
Have you considered a Self-Directed IRA?
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or ClientService@VantageIRAs.com.