Crowdfunding brings together a variety of individuals who commit money to projects and companies they want to support. It is a young and fast growing market but one that is transforming how people invest their money. It is also changing the ways businesses raise capital. Experts expects crowdfunding to become a huge industry in just a few years.
There are several types of crowdfunding:
Reward-Based Crowdfunding offers investors the product or service in return for their investment. They can also offer access to the project or people involved with it.
Peer-to-Peer Lending enables borrowers to get access to funds outside of traditional banking channels and those people willing to take a small risk to lend out money to others.
Donation-Based Crowdfunding allows good causes to receive donations from a wide audience.
Equity Crowdfunding enables real investments in private businesses. It is like online venture capitalists that provide investors with the opportunity to invest in businesses, starting at small amount.
There’s no doubt crowdfunding will be talked about in the coming years as this experiment with the future of business finance evolves and grows. If you are interested in finding out more on this topic, techstart NI have organised an event titled Go Crowdfund Yourself, 18th October at Ormeau Baths on Wednesday 18th October 2017 at 15:45 (Registration), follow this link for further information and registration.