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CrowdFunding
What are the four main types
of CrowdFunding?
FAQ
Today there are over a 1000 CrowdFunding websites
around the world and all of them operate differently
CrowdFunding falls into four main categories.
You need to work out which type of CrowdFunding is best for your own project or idea
The four main types are:
Donations Rewards
Equity Debt (Peer to Peer Lending)
Donation based CrowdFunding allows for pledges where the supporter does not expect
to receive anything in return for their contribution
Rewards based CrowdFunding allows supporters to receive
a product or service in return for their financial
contribution
Equity based CrowdFunding means selling off a percentage share of your business to a crowd
of investors
Debt based CrowdFunding (Peer to Peer Lending)
means you borrow money from the crowd at an agreed interest rate
and pay them back over an agreed period of time
Each type of CrowdFunding has it own:
criteria fee structure
and project focus
You therefore need to carefully consider which type of
CrowdFunding is best for you and your idea.
There are many more resources available to support your CrowdFunding efforts at
CrowdFundingFocus.com
CrowdFundingFOCUS