Investing As A Collective

Investing as a collective is often overlooked by many investors, novice and experienced. As humans, most of us just aren't comfortable with sharing risk/reward with others when it comes to seeking success or financial gain. This stems from fear, a general lack of trust, and the belief that we're probable to have more success on our own.
I am aware that there are some projects that we should go at individually, but let's take a minute to look at partnering on investments. As long as there are safeguards in place to protect all parties, partnerships can be a vehicle to accelerate your success. Being that this profile belongs to a collective that I'm a part of I felt this was a good topic for the 1st post (outside of the intro post) and we could provide some insight from experience.

Common Investment Schemes

Projects - Projects are typically started with the intent to execute short-term goals and come to a conclusion after all duties are fulfilled. They don't require registering a company, but it is suggested in cases where there is significant risk involved (e.g., a real estate flip).

Businesses - Business partnerships are long-term investments. Partners invest money, time, and resources to create a product or service in the pursuit of profit.

Investment Funds - A business structure for pooling together funds to vet and collectively purchase assets.

Some Prerequisites

• Clear goals
• Voting/Polling
• Defined roles
• Contractual provisions and potentially, legal advice

Advantages

• Bigger pool of funds
• Shared network, resources and workload
• Encourages accountability
• Checks and balances

With the growth of blockchain and smart contracts being utilized everyday in the crypto space, the barriers of entry for investing as a collective are being shattered. The blockchain is enabling massive collaboration and providing the flexibility needed for anyone with an internet connection to invest with like minds.

Instead of utilizing a specific scheme, collectives are able to operate like hybrids. I wonder how things will look in a decade or so when all businesses run on the blockchain.