Post by account_disabled on Dec 11, 2023 3:25:56 GMT -6
Crowdfunding has somehow become a phenomenon in the 21st century. The idea of crowdfunding has developed in a rapid pace and, surprisingly, it has C Level Executive List been easily accepted by the society. Thanks to its fast growth, we now have several types of crowdfunding,
which we can use depending on the needs of our product and target audience. Types of crowdfunding – table of contents: Equity-based crowdfunding Rewards-based crowdfunding Pre-sales crowdfunding Debt-based crowdfunding Donation-based crowdfunding Types of crowdfunding – summary Equity-based crowdfunding The first business funding option is equity-based crowdfunding, which is also known as investment crowdfunding. As the name suggests, it is a certain way of investing money. The concept is relatively young since it has only been around for 11 years. This solution is frequently used by startups all over the world.
Thanks to it, it is possible to skip traditional ways of raising money for your business. Companies and startups which use equity-based crowdfunding don’t provide their investors with any rewards, but offer them shares instead. The method is so advantageous that everyone who’s interested can participate in it. Over time, as the value of your business increases, the acquired shares can be either sold or distributed as dividends (profit sharing). It is interesting that entrepreneurs using equity-based crowdfunding aren’t allowed to raise more money than the amount declared at the beginning of the process. This is strictly connected with the number of shares of a given enterprise. The greatest advantage of equity-based crowdfunding is the fact that it is a modern and advanced form of business funding, and simultaneously the best regulated in legal terms. Platforms that offer equity-based crowdfunding are Beesfund, Seedrs oraz Crowdcube.