Types of Crowdfunding

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The different types of crowdfunding They aim to provide varied financing solutions. This article will allow you to know the crowdfunding classes according to the purpose.

The different types of crowdfunding according to the purpose

The truth is that it could not talk about crowdfunding without him internet development. Not surprisingly, the network of networks allows a multitude of people to contact each other for common interests without knowing each other before. Framework legislation still has a long way to go and, although the non-profit funding this regulated, in the case of crowdlending is the National Stock Market Commission (CNMV) the one that determines This is the way to mark.

He crowdfunding It is various types according to their purpose and characteristics. Not surprisingly, it should be noted that this model was born as a way of financing non-profit projects and, over time, the field has also opened up to traditional businesses. The main types you will find are the following:

investment crowdfunding

He investment crowdfunding It is designed to offer a tangible economic benefit to those who put money. Now, this benefit can be given in various ways, from shares in the company to a share in the profits of the company. In any case, the investor becomes part of the project.

This form of financing presupposes a certain identification of the investor with the project. Not surprisingly, it is sought that it forms part, either directly or indirectly.

reward crowdfunding

He reward crowdfunding It is a model that abounds in sectors such as culture. The literary authors, actors either youtubers offer some premium services to their patrons in exchange for their participation. This is an operating system that has become widespread because it makes a multitude of projects viable. In general, small amounts are requested (no more than 5-10 euros per month) in exchange for receiving exclusive or preferential services.

Although here there is an identification with the project, this is usually more liquid. The commitment is generally renewed month to month, so it can be canceled in case of discrepancy.

Donation Reward Crowdfunding

Donation reward crowdfunding has a nuance to traditional reward crowdfunding. The concept is offer a small reward in exchange for contributing to a cause, generally beneficial. However, there does not have to be a direct relationship between the cause supported and the reward received. There are several platforms that have specialized in this financing format.

It is important to be clear that, although there is a compensation, this is a bonus. The reward is not so much sought, but rather to find a way to make financing viable. This is one of the ways to popularize a cause.

 

donation crowdfunding

When people started talking about crowdfunding, they actually had to refer to this system. The operation is simple, one dcertain cause or social or political project for which it is requested financing. Donors know in advance that they will not receive no profit staff in exchange for their contribution. This is the purest form of crowdfunding and, why not say it, the most popular. It is recognized as non-profit financing.

One of the main characteristics of this type of financing is its limitation in time. The main idea is to open a limited term to achieve the financing objective. If not, the money would be returned to those people who contributed.

Loan crowdfunding or crowdlending

He loan crowdlending It is an option for those looking for a tangible financial return for your money. This system consists of lending money and agreeing a return with an interest rate after a while. This is one of the new formulas they use SMEs and large companies to circumvent the limitations of financial institutions.

The main advantage is that, unlike other cases, it can be interesting for the individual investor. If the company is solvent, it is normal that interest rates are offered above the market.

crowdfactoring

He crowdfactoring is a promissory note discount option. It is similar to crowdlending and consists of a loan of money by the investor that he receives after a while in exchange for interest. There are many SMEs that use this system because it is profitable for them. This aspect is important because, in the long run, it is a useful method for both parties and easy to obtain liquidity.

Conclusion

The types of crowdfunding They are varied and when you want to approach this world of financing, it is best to ask yourself a question. Do I want to earn money or contribute to some kind of social work? The answer will indicate which is the modality that best suits what suits you.

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