With the rise of social media and the sharing economy, a new trend has emerged in the world of investing apps. More and more apps are exploring ways for users to invest in each other, not just traditional stocks and funds. This innovative approach taps into people’s desire to support causes and individuals they believe in. By enabling peer-to-peer investments, these apps create new opportunities for community funding, entrepreneurship, and social empowerment. In this article, we’ll look at some of the top investing apps that allow users to invest in others.
Crowdfunding apps let users invest in individual projects
Many investing apps now offer crowdfunding options for their users. For example, apps like Wefunder and Republic allow users to browse investment opportunities in startups and small businesses. Users can invest as little as $100 in exchange for shares or SAFE notes. This helps entrepreneurs raise capital and gives investors early access to potentially high-growth companies. Users can diversify across multiple projects based on their interests. And they get the satisfaction of directly funding causes and people they want to support.
Microlending apps connect investors to borrowers worldwide
Microlending apps like Kiva facilitate loans to low-income borrowers, often in developing countries. Users can browse loan profiles of borrowers and choose who they want to fund with loans as small as $25. These apps help expand financial access for the underserved while allowing investors to support specific borrowers and missions. Studies show microlending can lift borrowers out of poverty when used appropriately. Apps like Kiva also report repayment rates over 90%, providing investors relatively low-risk fixed income.
Social trading apps let users copy investment strategies
Some investing apps also utilize social trading, where users can follow and mimic the real-time portfolios of top traders on the platform. Apps like eToro and Tradency use social trading features to connect less experienced investors with proven investment strategies. Top traders can monetize their skills while remaining transparent. And new investors can fast track their learning by piggybacking on the knowledge of successful traders. The wisdom of the crowd comes into play, with features like leaderboards, ratings, and commentary.
Equity gifting apps facilitate fractional gifts of stock
Equity gifting apps like GiftofStock allow users to gift fractional shares of stock to others. This provides a new channel for users to express appreciation by gifting equity in companies meaningful to the recipient. Apps simplify the process using electronic gift cards with portfolio tracking. Recipients get to be part-owners in brands they love while senders get to make a more creative gift. Apps like GiftofStock also partner with charities so users can gift donations in the form of stock.
Investing apps are expanding possibilities for users to invest in one another through crowdfunding, microlending, social trading, and equity gifting. This peer-to-peer model creates new pathways for community funding, financial access, social empowerment, and creative gifting. Investing in others can provide financial returns while also supporting causes that matter.