What is crowdfunding and how does it work?

Crowdfunding, or participatory financing, is an investment method that involves raising funds from a large number of savers to finance a specific project. Thanks to specialized online platforms, it has become possible to invest directly in various projects: real estate, innovative companies, renewable energies, start-ups, etc.

The principle is simple:

A project leader presents their financing needs.

A platform validates the project’s viability and proposes it to investors.

Individuals invest the amount of their choice.

The project is financed and investors receive, depending on the model, interest or equity shares.

👉 Concrete example: A real estate developer wishes to build a residence. Instead of soliciting only a bank, he appeals to individuals via a real estate crowdfunding platform. Everyone can invest from €1,000 and receive a fixed return in return.