Just as there are many different ways to raise capital for a business at all stages of growth, there are different types of crowdfunding too. Which crowdfunding method you choose will depend on the type of product or service you offer and your growth goals. Look at this site for more info and know the main types that are based on reward-based donations and equity funding.
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The most common form of fundraising is using websites such as Kickstarter and Indiegogo, which ask for donations at special prices. This could mean a free product or even an opportunity to participate in the design of a product or service.
Loan financing through donations
In general, you can consider any crowdfunding campaign that does not provide financial gain to investors or donors, eg. B. Crowdfunding on a donation basis. Common donation-based crowdfunding initiatives include fundraising for disaster relief, charities, non-profits, and medical bills.
Reward-based crowdfunding is people who contribute to your business in exchange for a "gift," usually some form of product or service your company offers. Although this method rewards supporters, it is still seen as part of donated crowdfunding because there is no financial or return on investment.
Unlike the donation and reward method, share-based collective funding allows participants to become the personal owners of your business by exchanging equity for shares. As a shareholder, your importers receive a financial return on their investment and an eventual share of the profits in the form of dividends or distributions