Crowdfunding

Crowdfunding or micropatronage is a collective financing network for entrepreneurial initiatives in which investors or patrons support a project and decide to contribute financially so that it can be developed.

There are many online platforms for crowdfunding campaigns. These campaigns are developed over a certain period of time and require the active participation of the promoter in order to attract the largest possible number of people interested in the project.

Before launching the proposal, the entrepreneur has to prepare the business plan and decide how to reward the “micropatrons”. Rewards can range from an acknowledgment or thanks to the delivery of a limited edition of the product.

Types of crowdfunding

There are several options that can be considered to raise the capital needed to develop a project:

-Rewards crowdfunding: this is the best known option, in which the promoter rewards investors in a non-monetary way.

-Donation crowdfunding: it is associated with solidarity projects and is promoted by non-profit organizations. Those who contribute do so knowing that they will receive nothing in return.

-Loan crowdfunding: this type of crowdfunding allows the investor to get his money back with an added commission.

-Investment crowdfunding: whoever invests will obtain economic benefits, becoming a part of the funded organization.