If your goal as an investor is to find and invest directly into specific businesses or ventures, be they early stage or established SMEs, crowdfunding platforms are a good way to explore such investments.
Some businesses or ventures listed on Round One also have a strong, socially-impactful component to their mission and your investment can go a long way in helping fundraisers realize their goals.
But crowdfunding may not be for everyone.
You should thoroughly understand that investing in early stage or non-stock exchange listed companies are considered "alternative investments" and do not share the same lower-risk profiles of government securities or insurance products, for example. In fact, early stage and SME equity investments tender to be much higher risk. There is a substantial possibility that you could lose you entire investment.
Related: Why should I invest on Round One?
✋RISK WARNINGS ✋
Crowdfunded investments are alternative investments and are thus generally considered high risk and speculative in nature. You are likely not to recieve dividends or regular income from such investments. There is a substantial chance that you may lose the entirety of your investment. Fundraiser and campaigns listed or eligible for listing on the Round One platform are not endorsements by Round One regarding investability and may not be construed as financial advice. We caution you to speak to your financial advisor on how to best allocate your portfolio based on your needs and objectives.
For additional information, check out our Risk Warnings.