What types of crowdfunding exist?

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zihadhasan011
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What types of crowdfunding exist?

Post by zihadhasan011 »

Crowdfunding is classified according to the type of compensation received by investors:

Donation Crowdfunding
In this type of project, we are not talking about investors, but rather donors. That is, the people who provide the funds for the project do so selflessly without expecting anything in return for their donation.

These are usually social or charity projects, such as fundraising in the wake of a natural disaster.

Reward Crowdfunding
In this case, those who provide the funds receive a luxembourg mobile database product or service in return , which allows the promoters to carry out a prior test of the project.

Investment Crowdfunding
Investors receive a share in the company developing the project. When the project raises the required funding and is launched, the investors receive the profit.

Loan Crowdfunding
Also known as "crowdlending" in English, in this case, investors receive a monthly interest income plus the return of the initial capital contributed.

Crowd Factoring or Invoice trading
It consists of a company that requires financing discounting its invoices and promissory notes pending maturity in order to obtain liquidity in advance.

The compensation received by investors is based on the return of the invested capital plus interest, in accordance with the agreement with the company.
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