Crowdfunding networks like Winnamore Street provide you a single venue or resource where you can make (or post) your offers to large numbers of interested persons regardless of whether you wish to lend or borrow money, invest in promising companies, raise funding for your business, donate or seek donations for worthy causes or even seek or provide professional crowdfunding services. Without crowdfunding you will have to use several resources - each specializing in just one or two of the various things you may want to do.
For example, as a lender, wanting to earn interest on your money, you’ll probably have to go to a bank or a similar corporation and place your funds with them (i.e. lend to them) at a rate of interest they have indicated for the specified duration. Apart from the fact that interest rates have been low for quite some time, there is a growing global trend by banks to discourage deposit accounts as such accounts appear in their balance sheets as “liabilities” which in turn requires them to have more shareholders capital because your deposit is an obligation for the bank to repay you with interest.
Instead, more and more banks all over the world are trying to stop taking deposits and are instead offering customers the “Swiss” style of banking. This means you pay to leave your money with the bank. If you wish to earn something on the money, the Bank will offer to manage it for you by making investments they consider suitable for you. Banks earn a commission on these investments sold to you. Returns on these investments are not guaranteed but you will pay a management fee on the investments whether you have returns or not. The very fact that a bank is compensated through commissions from investment products sold to you lends itself to the possibility of banks promoting investments that offer them the higher commissions.
This is one of the many reasons Crowdfunding is growing rapidly. Crowdfunding lets YOU decide how you want to deal with the money you have or the money you want. The U.S. JOBS Act. is expected to clear up some current legal ambiguities regarding what can and cannot be legally achieved through crowdfunding for business start-ups in the USA. The rest of the world will no doubt follow the US model. With Crowdfunding, ordinary people, from all over the world, are able to offer or raise funds from other ordinary people around the globe – the Crowd.