It’s possible to get involved in investments that are either lucrative or produce a solid rate of return on a cash flow basis – and they don’t have to be excessively risky. Each investor can select the type of investments that they like based on the type of risk profile that they prefer. This helps ensure that they select investments which meet their needs. That being said, deal making and selection really has nothing to do with CrowdFunding, per se. Where CrowdFunding comes in is for the matchmaking process of exposing prospective investors to opportunities.
CrowdFunding is not magic. CrowdFunding is really not much more than a mechanism for a Promoter or issuer to find people who are interested in his or her opportunity, and it’s a mechanism for investors to find opportunities that they might not otherwise be able to access. Private Placement investing can be a very smart way for people to work together and pool money. CrowdFunding, on the other hand, is a very smart way for people to find one another, which is exactly what the Internet is so great at doing.