Crowdfunding is a new way of lending and borrowing money with the aim of raising funds for a project. There are different types of crowdfunding which are:
- Donation-Based Crowd Funding- This is a type of crowdfunding where there is no return on investment for the investor.
- Equity-Based Crowd Funding- A type of crowdfunding where the investors get a share of your project or company as part of their return.
- Reward-Based Crowd Funding- This is where a reward is offered as part of the return on investment. The rewards can be in the form of a software-based token reward.
- Peer to Peer Lending- This is a type of crowdfunding where the investor and the owner of a project are linked directly; where investors and sponsors are willing to lend money to people who have projects.
Crowdy Agritech uses the peer to peer lending form of crowdfunding and the reward-based type of crowdfunding jointly. This is where investors and sponsors are willing to lend money to people who have projects then the lenders/investors/sponsors get a reward or earn income from their generosity.
This is possible through our crowdfunding platform available on our website and mobile application. This is where farmers get to submit their farm projects that require funding and investors/sponsors are able to contribute towards the farm. At the end of the farming period, once the produce is harvested and sold into the market, the investor/sponsor gets a return on investment (ROI) based on their contribution. To know more details on what it entails to invest in farm projects, read more about it from this link here.
Through crowdfunding, investors/sponsors obtain several benefits which are:
Reduction of Costs- For an individual investing in any project, they are able to cut down on their transaction costs as they are linked directly to the project owner, therefore gaining more value from their investment during the return on investment period.
Validation of Product- Investors, and sponsors are able to get the validity of the farms they are investing in, as details pertaining to the farm will be indicated on the platforms. Investors will able to read all the details and evaluate which ones, they want to contribute towards. In addition to that, Crowdy Agritech takes care of all farms indicated on the site. Any farmer who would like to add their farm projects on our platforms will be evaluated by Crowdy Agritech through the evaluation process we have set up. Crowdy Agritech will visit each farm to ensure that, the farm is truly in need of funding and that the owners are genuine. This will ensure that investors will get to see only farms evaluated.
Return on Investment- Investors/sponsors will be able to earn an ROI from their investment. For every farm, they invest in or crowdfund, the rate of ROI will be indicated below the farm project. Investors will be able to calculate their ROI based on the amount they wish to invest. They will be able to get their return on investment at the end of the farming period after the farm produce has been harvested and sold to the market.
Security for Their Money- Investors/sponsors are assured of the security for their money. All funds go directly to the farm project and upon investment, Crowdy Agritech will send an email to every investor with details pertaining to their investment and an acknowledgment that the funds have been received by the farmer.
What happens when I have all these benefits? Is my investment secured?
How Secure is My Investment?
This is a question you now have. To ensure that there is no loss of funds in case of any unexpected occurrence like natural calamities that may affect the farm produce, Crowdy Agritech has put in place an insurance cover. The insurance takes care of any unexpected damage to the farms ensuring that you do not lose any of your money.
To ensure that no farmer is able to con any investor on the platform, once the farmer submits their farm project that requires funding, we evaluate the application before approving it on the platform. We are able to do this through our agronomies in various parts of the country. They visit the farm that has been submitted and evaluates it based on our rules and policies. This is to ensure no farmer breaches the requirements needed and that no farmer cons any investor on the platform.