“Over the past few years, more than 350 banks have left the market and entrepreneurs are forced to look for other legitimate sources of financing,” – Yevgeny Shulepov, the member of the State Duma Financial Market Committee, said. “A new bill regulates the fuzzy and unclear status of retail financing – crowdfunding – and combines different models of alternative investments” – explains the representative of Planeta.ru crowdfunding platform.
Definition of crowdfunding: When investors give money for a project and the business entity rewards them with products. Investors pre-order a product with prepayment and deferred delivery.
Crowdlending refers to loans provided by a pool of retail investors. (Read more…)