Types of crowdfunding
While many people think of crowdfunding as being donation-based, many platforms also incorporate offers rewards and equity. The most successfully completed Kickstarter projects usually offered products to early investors. Private companies are increasingly offering equity in exchange for donations in what is known as equity-based crowdfunding. These models go beyond individuals’ generosity, increasing backers’ incentive to give.
Where is crowdfunding headed?
With this evolution of the crowdfunding market, platforms are asking what other financial services crowdfunding could incorporate. Alternative lending and peer-to-peer lending are a logical next step. However, as this statistic suggests, the appetite for alternative online financial transactions varies significantly between regions. As with many Fintech topics, the future of crowdfunding also hinges on regulation which has not yet been decided.