What Are The Different Types Of Crowdfunding?

What Are The Different Types Of Crowdfunding?

1 Answer

  1. Crowdfunding can be categorized into 4 types. They are Donation crowdfunding, Reward crowdfunding (non-equity based crowdfunding), Debt crowdfunding and investment based crowdfunding (Equity crowdfunding).
    1. Donation crowdfunding: In this type of crowdfunding, people donate for social cause or a specific cause without expectations of getting anything in return.
    2. Reward crowdfunding: Rewards such as coupons, t-shirts, movie tickets are given to investors in return for the money invested by them.
    3. Debt crowdfunding: Here inestors expect the business to return money with interest. It is just like borrowing money from bank.
    4. Investment based crowdfunding: Investors invest money in return for stakes/ shares in business.

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