How to Crowdfund
There are three main ways you can crowdfund. Here's a quick rundown.
1. Equity
Equity-based corwdfunding is when you ask a crowd to donate to your business in exchange for equity
Who?
Equity-based crowdfunding is a fast, efficient, and easy way for entreprenteurs and start-ups to generate investment opportunities
Where?
Some popular equity-based crowdfunding platforms are: crowdcube, symbid, and growvc.
What Crowd?
The crowds to pursue in equity-based crowdfunding are shareholders, stockholders, and investors interested in your area of business.
2. Donation
Asking a crowd to donate to your project in exchange for rewards of value, such as an e-card, recognition in the credits of a movie, a t-shirt, or the finished product.
Who?
Donation based crowdfunding projects can be great for all types of creative artists, developers, filmmakers, writers, and inventors.
Where?
Some excellent platforms for donation based crowdfunding are RocketHub, KickStarter, and IndieGoGo.
What Crowd?
Crowds to look for to fund your creative project are avid fans, philathropists, gadget lovers, and experimental investors.
3. Debt
Asking a crowd to donate to your business or project in exchange for financial return and/or interest at a future date.
Who?
Debt-based crowdfunding is a way for business owners, start-ups, inventors, and entrepreneurs to start off.
Where?
A few platforms for debt-based crowdfunding include Prosper, People Capital, and Lending Club.
What Crowd?
The crowds that will be involved with debt-based crowdfunding are mostly investors and entrepreneurs.