TYPES OF
Today, there are primarily four types of crowdfunding.
The first is
debt-based,
in which contributors receive interest payments in exchange for their contributions.
Crowdo and MoolahSense are examples of websites that have this model.
Equity-based
crowdfunding is when contributors receive shares in the company in exchange for contributions.
AngelList, Capbridge, and Seedrs are good examples of websites for this category.
The third type is
reward-based
. Here, contributors get rewards such as early copies of the product or priority access, extra information, etc.
Platforms such as Kickstarter and Indiegogo do this well.
The last type is
donation-based
.
Contributions are donations without the expectation of anything in return.
These donations are often tax-deductible. Patreon, Friend Fund, and You Caring are examples of this type.