Frequently Asked Questions

What is P2PMarketData?

How does P2PMarketData work?

What is the difference between P2PMarketData and crowdfunding websites?

How accurate is the information on P2PMarketData?

Can I use the information on P2PMarketData for research or media?

Is P2PMarketData licensed or regulated?

Can I make suggestions on changing information about a platform or campaign?

Can you send me the monthly Funding Reports?

How can I suggest a platform?

How much can my company raise with crowdfunding?

Can my company raise funds on any crowdfunding platform in the world?

How much does it cost to run a campaign?

The cost of hosting a crowdfunding campaign can vary widely depending on the platform and the type of crowdfunding campaign, the specifics of your project, and the marketing efforts you decide to implement. Here's a basic breakdown:

Platform Fees (most platforms charge a percentage of the funds raised and other fees may include processing fees, repayment fees, setup fees, and others).
Marketing/Promotion (you may need to spend money promoting your campaign to ensure it reaches a wide audience).
Campaign Materials (creating engaging videos, images, and other promotional material can incur costs).
Fulfillment (if you are running a reward-based or lending-based campaign you need to factor in the costs of producing and shipping the rewards, or the costs of repaying the loan).
Taxes (depending on your location or the nature of your campaign the funds you raise may be taxable. It’s recommended to consult with a tax professional to understand your obligations).

Here are examples of platform fees for hosting a crowdfunding campaign at some of the largest providers in the world.

Equity-based Crowdfunding:
- Wefunder: If a RegCF campaign is successful the cost is 7.5% of the total fundraise.
- Seedrs: If an ECSP campaign is successful the cost is 6% of the total fundraise, a completion fee of £2,500 (excl. VAT), and a processing fee ranging from 0.1% - 2.9% depending on the individual investor's payment methods.

Lending-based Crowdfunding:
- Estateguru: There is a success fee of 2.5% to 4% depending on loan size, an administration fee of 0 to 2%, and €500 + VAT for security agents, among other fixed fees depending on the type of loan, collateral, and securitization. Overdue payment fees also apply.
- October: There is a success fee of 3% and a monthly 0.04% fee for the remaining outstanding loan. Overdue payment fees also apply.

Reward & Donation-based Crowdfunding:
- Kickstarter: Depends on the country of the campaign. In the United States Kickstarter charges a success fee of 5% and a payment processing fee of 3% + $0.2 per pledge.
- Indiegogo: Depends on the country of the campaign. Similar to Kickstarter, the campaign fees in the United States are a 5% success fee and a payment processing fee of 3% + $0.2 per pledge.

Should my company raise funds with equity crowdfunding, donation/reward crowdfunding, or lending-based crowdfunding?

Which type of companies can raise funds with crowdfunding?

How do I get started raising funds with crowdfunding?

I am new to private online investment markets, where do I start?

How do I get a return on my investment?

Who can invest?

How do I qualify as an accredited investor?

Does it cost anything to invest?

What are the risks of investing in digital private markets?

Investing in digital private markets entails different types of risks across various industries.

Here are some of the common risks to consider in all industries:

Platform risk: The possibility of the platform becoming insolvent.
Liquidity risk: Difficulty in selling your investment, or limited availability of buyers.
Market risk: Economic conditions and market trends that may impact the performance of your investment.
Transparency risk: Lack of timely and comprehensive information on the risks associated with your investment.
Fraud risk: Potential for internal or external fraudulent activities.
Regulatory risk: Changes in regulations or tax laws that could have a negative impact on your investment.
Inflation risk: The risk that inflation rates may erode the real value of investment returns.
Currency risk: Fluctuations in foreign exchange rates if investing in foreign currencies.
Cash drag risk: Holding excess cash due to low deal flow.
Financing risk: Inability to secure additional financing if required for a particular investment opportunity.

Here are some of the common risks to consider in specific industries:

Startup Investing
- Business risk: The business might make inadequate profits due to uncertainties or become insolvent.
- Instrument risk: There are different risks associated with preferred equity, common equity, and convertible notes.
- Dilution risk: The percentage ownership might decrease with new fundraising rounds.
- Minority risk: You might be treated less favorably than larger investors.
Real Estate Crowdfunding
- Location risk: Local factors such as new development, zoning changes, or changes in the local economy might decrease the value.
- Management risk: Property management might cause decreased property value.
- Vacancy risk: The real estate might become vacant for an unexpected period of time.
- Tenant risk: The tenant might stop paying rent.
- Development risk: The construction might be delayed, incur higher costs, reveal defects after completion, or approvals might not be granted.
Collectibles Investing
- Authenticity risk: The collectible might be counterfeit or fake.
- Storage risk: The storage facility might not handle the collectible carefully.
- Maintenance risk: The collectible might not be maintained to preserve value.
- Grading risk: The collectible might be over or under-graded.
- Insurance risk: Insurance can be difficult to obtain on rare objects.
Peer-to-Peer Lending
- Credit risk: The borrower may not pay the loan.

It's important to note that these risks may vary based on the specific investment and industry. It's recommended to thoroughly assess the risks and seek professional advice before making any investment decisions.

Can I cancel my investment and receive a refund?

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