The term Crowdinvesting (also: equity-based Crowdfunding) defines a variety of transactions where an unspecified number of investors come together in order to invest in a well-defined purpose. The following segment exclusively considers equity-based Crowdfunding: investments in equity shares or profit-related returns (for example, royalties or convertible loans). Crowdinvesting has become a popular financing option for start-ups and is considered part of venture capital financing. Well-known platforms in this area are EquityNet, CrowdCube and Seedrs.
Not included in this segment are: investor group loans (see Crowdlending), reward-based Crowdfunding campaigns, which have no monetary value for the investor, for example product launches, art-, music- and film-financing (Crowdfunding) as well as donations.