What ROI do the investors want?
Since the projects are funded by individual investors, the ROI varies widely. However, depending upon the risk, length of time the funds are in the project, and the type of project, the investors generally want a 20% to 50% return. The investors are looking for a percentage of the profits in the deal. They weigh that against the risk to determine whether the overall return on investment is sufficient for the risk taken.
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