{"id":25641,"date":"2021-03-02T11:11:19","date_gmt":"2021-03-02T02:11:19","guid":{"rendered":"https:\/\/www.waca.associates\/en\/?p=25641"},"modified":"2021-03-02T11:11:21","modified_gmt":"2021-03-02T02:11:21","slug":"%e3%80%90kit%e3%80%91different-types-of-crowdfunding","status":"publish","type":"post","link":"https:\/\/www.waca.or.jp\/en\/blog\/%e3%80%90kit%e3%80%91different-types-of-crowdfunding\/","title":{"rendered":"\u3010KIT\u3011Different types of crowdfunding"},"content":{"rendered":"

Cover photo by unsplash<\/em><\/p>

Did you know that there are different types of crowdfunding? <\/p>

The term “crowdfunding” has gained popularity in the past couple of years, but not many people know that there are different types to it.<\/p>

Below are the different types of crowdfunding you should know if you are planning to start a project or planning to fund some interesting projects. <\/p>

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Donation-based funding<\/h2>

In a donation-based crowdfunding project, People give money to a project or a company with nothing in return. That’s why it’s called “donation”.<\/p>

Here’s an example. You need specific equipment for your company and some individuals funded you to support the purchase but with nothing in return. It’s often seen in a project such as raising money more covering medical expenses or an unexpected financial crisis. <\/p>

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Dept<\/h2>

This type of crowdfunding is where the money pledged by backers is a loan and must be repaid-with interest by a certain deadline. <\/p>

It is also called peer-to-peer lending (P2P) and it is one of the most popular options. It’s pretty similar to the traditional method of getting funds, which is going to the bank.<\/p>

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Rewards<\/h2>

In this type of crowdfunding, donors receive something in return, depending on the amount they’ve donated. <\/p>

For example, if you are a hotel owner trying out for reward-type crowdfunding, you can prepare original amenities or a special exclusive coupon. If you are an artist, you can receive funds and return it by drwaing incredible drawings. One example of a platform that provides rewards-based crowdfunding is campfire – a service in Japan.<\/p>

Common rewards are – handmade items, prized donated by partner companies, or free products or services.<\/p>

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Equity<\/h2>

Equity-based crowdfunding allows small businesses or start-ups to give away a portion of their businesses in exchange for funding. <\/p>

Depending on the amount the donors have donated, the shares would be different. It is somewhat similar to how common stock is bought or sold on a stock exchange. It is also similar to venture capital as well.<\/p>

Usually, equity crowdfunding requires large fundraising minimums, typically into thousands of dollars.<\/p>

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Profit sharing<\/h2>

Businesses can share some portion of the profit with the crowd in return for funding now.<\/p>

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Hybrid type<\/h2>

Some projects are a combination of different types of crowdfunding. They mixed it up to find the most effective way to grow their business.<\/p>

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Real estate Crowdfunding<\/h2>

This is a pretty new way of crowdfunding. Using this type of crowdfunding, investors can contribute much smaller amounts of money compared to typical real estate investing. It usually starts from $5000.<\/p>

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Now you know the different types of crowdfunding! Now it’s time to post your projects and start preparing! Usually, the donation-based crowdfunding is the best. It doesn’t require you to give back the money, and a lot of people do help you fund for your project. <\/p>

There’s always a flipside to everything, so make sure you know the pros and cons of each crowdfunding methods.<\/p>

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Tune in for more information about crowdfunding! We are here to help you succeed in getting funds for your cool projects!<\/p>","protected":false},"excerpt":{"rendered":"Cover photo by unsplash Did you know that there are different types of crowdfunding? The term “crowdfund […]","protected":false},"author":675,"featured_media":25660,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[101,52,175,169,161],"tags":[],"class_list":["post-25641","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-blog","category-growth-hacking-course","category-growthhacking","category-technology"],"jetpack_featured_media_url":"https:\/\/www.waca.or.jp\/en\/wp-content\/uploads\/2021\/03\/claudio-schwarz-purzlbaum-8j6_3iUcgec-unsplash.jpg","_links":{"self":[{"href":"https:\/\/www.waca.or.jp\/en\/wp-json\/wp\/v2\/posts\/25641"}],"collection":[{"href":"https:\/\/www.waca.or.jp\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.waca.or.jp\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.waca.or.jp\/en\/wp-json\/wp\/v2\/users\/675"}],"replies":[{"embeddable":true,"href":"https:\/\/www.waca.or.jp\/en\/wp-json\/wp\/v2\/comments?post=25641"}],"version-history":[{"count":4,"href":"https:\/\/www.waca.or.jp\/en\/wp-json\/wp\/v2\/posts\/25641\/revisions"}],"predecessor-version":[{"id":25661,"href":"https:\/\/www.waca.or.jp\/en\/wp-json\/wp\/v2\/posts\/25641\/revisions\/25661"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.waca.or.jp\/en\/wp-json\/wp\/v2\/media\/25660"}],"wp:attachment":[{"href":"https:\/\/www.waca.or.jp\/en\/wp-json\/wp\/v2\/media?parent=25641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.waca.or.jp\/en\/wp-json\/wp\/v2\/categories?post=25641"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.waca.or.jp\/en\/wp-json\/wp\/v2\/tags?post=25641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}