Crowdfunding in the UAE through the Beehive for 2022
Getting finance is one of the concerns of all the individuals who want to start their own business, the reason behind this is that finance is the basis of the success or failure of any business. The inability to make an initial investment is one of the main reasons why many people avoid setting up their companies, but for now this should not be a problem. If you have an idea to start a business or even a company that you want to grow but have no idea how to get financing to do so, then crowdfunding might be the best solution for you. In this article, Craig Moore, founder and CEO of Beehive, one of the leading crowdfunding companies in the UAE across its cities and suburbs, will help us understand the idea of crowdfunding. They want to establish their company.
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| Crowdfunding in the United Arab Emirates |
Crowdfunding in the United Arab Emirates
Crowdfunding gives small and new business owners the opportunity to obtain the necessary funding that helps them grow and expand their businesses. Crowdfunding provides an alternative way to obtain project funding by receiving money from a small amount from large groups of people. Crowdfunding is usually obtained through an electronic platform. There are four ways to obtain crowdfunding in the UAE and this is through donations, lending, offering rewards for funding, or allowing investors to acquire shares in the companies they invest in.
Although crowdfunding in the UAE is still new, it is attracting the interest of many small and medium-sized companies and investors who are looking for alternative financing and investment solutions.
Currently, the Lending and Share Acquisition systems are mainly used in crowdfunding in the UAE. These two systems of crowdfunding are obtained through an electronic platform that connects companies in need of funding with investors. Although there are pros and cons to these two types, they provide an alternative method of financing
Lending
The lending system on our platform provides economic returns to the financiers, as the financiers get those returns through the monthly payments returned from the loan amount, in addition to getting the interest. In other words, it can be said that lending is done through investors who finance companies without the need for traditional intermediaries such as banks.
The idea of lending is that investors provide money to companies in small amounts, and in return, they get monthly payments for the money they loaned. These investors also get the interest from those payments. It is preferable to choose this financing system if you have a company and a history that proves that you are able to repay the loans. The advantage of this system is that it allows you to maintain full ownership of your company.
sell stock
One of the most important things for a business owner to consider is to understand whether you can pay what you have borrowed, and if you can do so, then financing through borrowing is your best option.
But if financing through borrowing is not suitable for you, you can sell the shares of your company, as your shares in the company are sold to several investors who share profits and losses with you. The benefit of this system is that investors who have a lot of experience and knowledge can offer their advice and ideas to the companies in which they invest. As for the negatives of this financing system, you will get a small stake in the company you founded. Furthermore, you will sometimes have to consult your company's investors before making any management decisions. This system attracts startups; Because investors will bear the losses, and because they can provide the money needed for the company's hard-to-get growth.
Benefits of crowdfunding in the UAE from Beehive
Companies that enable you to get crowdfunding in the UAE offer alternative ways to fund companies, and this was expressed by Mr. Craig Moore, Founder and CEO of Beehive:
Is crowdfunding suitable for investors?
When investors pass our DFSA assessment and study, they will be able to invest even with AED 100. In addition, these investors will receive monthly payments with interest on them.
I advise Beehive investors to reinvest in the monthly payments they receive in order to fund other projects, doing so will help them achieve the maximum returns they get from their investments.
Beehive هي أول منصة على الإنترنت في دولة الإمارات العربية المتحدة تنظمها سلطة دبي للخدمات المالية ، والتي تسمح للمستثمرين بإقراض أصحاب الشركات التي تحتاج إلى تمويل ، حيث تربط الشركات الصغيرة والمتوسطة بالمستثمرين الذين يمكنهم تقديم الدعم لمساعدتهم على النمو. لدى Beehive أكثر من 7000 مستثمر مسجل. لذا فإن خلية النحل هي أسرع طريقة لربط الشركات بالمستثمرين للحصول على قروض بدلاً من التمويل التقليدي.
كتبه ونشره موقع دبي للاستثمار العقاري