The daily newspaper “Die Welt” recently published a Articles on crowdinvesting in Germany – with an assessment of whether and how small investors can make money from it. Since 2011, 44 million euros have been raised for more than 150 start-ups in Germany via internet platforms.
High returns…
Given the low interest rates, returns of 30 percent, 45 percent, and almost 50 percent sound like fantastic returns for a small saver. But such premiums aren't actually enough. Crowd investing offers significant risks, as well as opportunities.
… have to compensate for high failure rates
To even break even with a startup portfolio, small investors must invest in a wide variety of young companies—ten different ones, as a guideline. They rely on multiplying their investment in individual investments to compensate for losses on other investments.
To protect small investors, on 10 July the Small Investor Protection Act came into force.
The article “This is the only way to earn money with your start-up“ read at Welt.de
