Types of Crowdfunding

Entrepreneurship-and-Communication-Skills-notes
  • In rewards-based crowdfunding, backers give a small amount of money in exchange for a reward.
  • In donation-based crowdfunding, donors donate a small amount of money in exchange for gratitude and the feeling of supporting a cause they believe in.
  • In equity crowdfunding, investors invest large amounts of money in a company in exchange for a small piece of equity in the company.
  • And in debt crowdfunding, lenders make a loan with the expectation to make back their principal plus interest.



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