Types of Crowdfunding
Essentially, there are four ways to raise funds:
Collaborative - whoever finances receives a donation;
Reward - in exchange for financing, the service or product is provided;
Capital - the financing entity obtains a share in the share capital, distribution of dividends or sharing of profits;
Loan - the financed entity pays interest on the financing.
How to do Crowdfunding
It's actually quite simple, you just need to:
Access an online crowdfunding platform;
Create a campaign with your business idea;
Set a funding goal;
Advertise on social media.
How Crowdfunding Works
After describing the project to be financed on the online platform, defining the respective minimum financing amount and term, individuals or companies can participate monetarily. Once the term ends and if the financial objective is achieved, the entrepreneur receives the total funds (as a rule, the platforms charge 5% of this amount).
If the objective is not achieved, the entrepreneur will not receive the funding, the monetary support will be returned to those who invested (in these circumstances the platforms do not charge a percentage).
