Real estate crowdlending
Introduction
Crowdfunding or collective financing[1] (from its name in English, crowdfunding) is a collaborative project financing mechanism developed on the basis of new technologies. It dispenses with traditional financial intermediation and consists of putting project promoters who demand funds through the issuance of securities and shareholdings or by requesting loans in contact with investors or fund providers who seek a return on investment. Two characteristics stand out in this activity: the massive union of investors who finance small high-potential projects with small amounts and the risky nature of said investment.
In general terms, crowdfunding consists of the public dissemination, by the person seeking financing, of the cause or business for which he or she fights, and joint financing by independent lenders who simply sympathize with the cause, or pursue a credit offered by the borrower. Given that much of the success of this form of financing rests on the publicity given to the project, the most important collective financing platforms currently have support on the Internet, due to their mass reach and comparative low cost.
Crowdfunding can be used for many purposes, from artists seeking support from their followers, political campaigns, debt financing, housing, schools, dispensaries and even the birth of companies or small businesses.[2].
Other names
The term comes from the English crowdfunding, which translates into Spanish as mass financing. Crowdfunding is also given the following names: micro-patronage,[3][4] mass financing, mass financing or by subscription, popular questioning,[5] crowdfunding[6] and crowdfunding.[7].
Crowdfunding in Spain is formally and legally called participatory financing platforms, regulated by Title V of Law 5/2015, of April 27, on the promotion of business financing.[8][9].
History
The criterion of crowdfunding has donations as precedents. But this term is being renewed thanks to the attention it has received from merchants and entrepreneurs now that social networks, online communities and micro-payment technologies make it much easier and safer to obtain donations from a group of interested people at a very low price.