What are the types of crowdfunding?

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Financial donation is not the only source of crowdfunding, although it is one of the most widely used. Crowdfunding can be considered in different forms.

The gift
A financial or in-kind mom database donation is similar to a philanthropic action in which the donor supports a project that is close to their heart.

The donation can be made without compensation. It can also give rise to a variable reward depending on the amount paid. This reward can be considered in different ways: a simple mention of the donor's name with thanks, a promotional item or even the receipt of the financed product.

Crowdlending
The second type of crowdfunding is crowdlending, or participatory credit. It is more similar to a banking transaction. The donor becomes an investor lending a certain amount of money in exchange for remuneration including the amount lent as well as interest. However, crowdlending involves risks, because the completion of the project is not guaranteed. The return is therefore also not guaranteed.

Crowdinvesting
The third type of crowdfunding is crowdinvesting, or participatory investment. This is a form of financing reserved mainly for young, growing companies that have difficulty obtaining financial support from traditional banks. Crowdinvesting is a real investment, because the investor receives a stake in the company, calculated according to his contribution, as well as a share of the profits if the company makes a profit.

These new forms of financing are increasingly present today, and are even addressed in university courses, such as the MBA Finance for example. This is proof that they are now part of financing habits and must be considered as such.