Crowdfunding has many different forms. Debt crowdfunding is when money is lent on a peer to peer basis. Reward based crowdfunding is when you receive a product or gift in return for funding a project. Symbid is a different form entirely. You actually invest directly in to the company and through that become a shareholder. This is known as equity crowdfunding.
In the past, investing in private companies has been a drawn out and arduous process. Each transaction required contracts to be drawn and notarization.
Symbid is revolutionizing a simpler and cleaner way. The Dutch financial supervisory authorities (AFM and DNB) have approved of our method, and it is completely covered from a legal standpoint. Investing in private unlisted companies has never been this easy.
How does Symbid keep things this simple? Symbid has revived a safe and tested legal entity: the cooperative. A legal structure with voting rights and stock, but limiting liability to to no larger than the amount invested.
How does it work? For each business that acquires new investors via Symbid, Symbid sets up an investors’ cooperative.
The investors all become members in this investors’ cooperative and it is the cooperative which is ultimately the shareholder in the business.