Crowdfunding can be a very rewarding opportunity for investors and businesses alike, as the crowdfunding trend grows around the world, more and more companies are interested to join which offers a wide pool of selection for investors. If an investor makes a choice of business that turns out to be extremely successful, they can see their investment grow without limitation in the years following the investment. On the other hand, crowdfunding is a long term investment, investors should not expect to make returns within months or 1 year, rather expect to see their investment grow with the company, so it not advised to plan crowdfunding investing to achieve short-term goals.

Investing in a crowdfunding equity opportunity allows investors to have partial ownership in the business they have invested in, which can be rewarding in multiple ways, such as making a profit from the increased value of the company over the years when they decide to sell their shares through a secondary market or private sale, as well as by receiving dividends when the company is successful within a financial year, and lastly if a company decides to change its structure, it can provide buy-back offers to investors at a premium where the investor can be offered a higher amount to sell their shares back to the company.

While investors can enjoy the benefits of crowdfunding through a simplified process on Beban’s platform after making careful considerations of the business, they need to be wary of the risks. There is no way of finding out of a business is going to make it or fail, thus, meaning an investor needs to ensure that they invest only money they are wiling to lose and have set aside for investments. Furthermore, it is noted that investors are recommended to diversify their portfolios in order to mitigate the loss from one industry to another, as well as different business with various sizes and industry standing. Investors also need to understand the structure of the company, their investment value and their rights, as a crowdfunding investor, investors are owning their shares through a nominee account, which means they will not have any control over the company or vote on how it is run, the power to do so remains with Beban as a nominee account holder as well as the other company shareholders.