Reward crowdfunding platforms operate in 44 and focus on Real estate, Startups, SME, Sustainability, Litigation, Green energy, Health & Science, Logistics, Personal loans, Art, Mortgages, Social cause, Education, Farming, Sport and Maritime providing different investment opportunities for retail and accredited investors. The biggest number of Reward crowdfunding platforms operate in USA, Andorra, Albania, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Monaco, Netherlands, Norway, Poland, Portugal, Romania, Turkey, Saudi Arabia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom, Ukraine.
The minimum investment amount varies from platform to platform. On this listing, you will find crowdfunding platforms that offer investment opportunities starting at € with a maximum investment amount of 500€.
As a crowdfunding platform directory, we verify the most active crowdfunding platforms if they reach out and claim their profile. On this listing, 10 crowdfunding platforms claimed their profile.
Fun fact: among all the crowdfunding platforms listed here, the oldest has been founded in 2005 and the youngest in 2023.
Things to consider when choosing a Reward crowdfunding platform
Once you’ve decided on the crowdfunding business model for your investing or fundraising purposes, it may seem like the major research part is done. It’s surely a significant one, but there is still more work to do. Here are some fundamental factors to consider while proceeding with your investment journey.
The next logical step is to get straight to the platform research to see the existing options. Once you browse the list of Reward crowdfunding platforms, the first thing to ensure is their regulator compliance. In other words, if these Reward crowdfunding sites adhere to the country’s current legislation.
For instance, all Europe-based companies must have or be in the process of obtaining an ECSP licence.
Then research crowdfunding providers’ history and customers’ experience, to choose the best crowdfunding resource for your goals. The key metrics to review are:
- How long has the platform been operating, and how much has it accumulated? Top companies usually have been present on the market for at least three years and have reached €1M in funding.
- What are the clients’ reviews? If there have been negative reviews or defaults, what actions did the platform take?
- Have they reimbursed investors?
- Who’s the platform’s leadership, and what’s their background? Ideally, they have previous experience in banking or investing.
Finally, ensure that the fees and commission structure is clear to you.
Is Reward investing worth it?
It may be a good choice for investors willing to diversify their portfolio and yield higher returns but who are ready to take on higher risks.
It is also a chance to access loans and niches that were previously available only to institutionalised investors or high-net individuals.
While crowdfunding offers more lucrative and diverse opportunities, it’s fairly considered a high-risk investment. So, you need to be well-aware of the risks involved and well-prepared, if you feel ready to take them. The more you get familiar with the processes involved, the more you realise if your expectations are aligned with the possible risks and outcomes.
How to avoid the risks associated with Reward investing?
There is no way to avoid them completely, however, there are definitely some tools to minimise them. Apart from the basic platform’s security check highlighted above, here is what you can do:
- First and foremost, diversify across loans, platforms, and investment types. Should any loan default, it won’t dramatically impact your portfolio’s general stability, and you won’t lose your entire investment.
- Select Reward crowdfunding websites with buyback guarantees. In a nutshell, it’s the platform’s commitment to repay the funds invested if the loan goes bankrupt within 90 days or so.
- Cross-check the platform’s reputation: see if the leadership is present on social media and how actively they talk about their platforms’ activity. It shows how willing they are to contribute to the general sense of trust and transparency.
- If you have any questions, reach out to support to check out their response speed and quality. It’ll give an overall understanding of how the company treats its clients.
- Always start with small investments if the crowdfunding niche or Reward platform is new to you.