What is Crowdfunding?

Crowdfunding is is the practice of funding a project or business by raising money from a large number of people.   There are 4 main types of crowdfunding:
  • Rewards.  Backers contribute money in exchange for a reward. This reward is often, but not always, the item being produced, such as a watch or a game
  • Donation.  Donors generally donate small amounts typically to charity, to good cause events
  • Loan. (often referred to as Peer to Peer lending).  Investors make a loan with the expectation to get paid back the principal loan amount plus interest.  
  • Equity.  Investors receive a share of equity in the company itself
Want to know more? You can purchase the Simple Crowdfunding book that provides a quick introduction to crowdfunding.

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