#EthisEduSeries Ep 5: Profit Sharing Crowdfunding Explained
Assalamualaikum warahmatullahi wabarakatuh,
Hi, I’m Iqbal!
Today we’re going to show you how to invest on EthisCrowd.com
Ok, let’s get started!
EthisCrowd investments use a Profit Sharing contract, known as Mudharabah in Islamic Finance, to pursue various types of projects.
The first step in a Mudharabah contract is to make a joint venture between a local partner in the country of the project, and a developer. So, the developer and an Ethis partner will make a joint venture.
After that, the crowdfunding process will begin. The crowd will send their investments through the EthisCrowd.com platform into the JV (Joint Venture) company. This JV company will then go on to take on the project.
An affordable housing project.
This project will receive the funds that were raised by the crowd. After that, once the project is complete, the houses will be sold. The profit generated from the sale of the houses will be shared on a Mudharabah basis.
The developer will take a portion of the profits and EthisCrowd.com and the local partner will take the remaining share of the profits. And then, of course, the crowd will receive their payouts for investing in these social impact projects, as well as other types of projects.
And that is the process of EthisCrowd investments. Thank you for watching.
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