What Is Crowdfunding?
What exactly is crowdfunding? It is a financing method for ventures and firms seeking funds from the public and investors, to finance a project or initiative. Investors receive interest payments or equity shares from investing in a company on a crowdfunding platform.
There are 4 types of crowdfunding available, namely the following.
- Equity
Equity-based crowdfunding is the type of crowdfunding that is an investment. Startups and small businesses can choose to offer equity shares to those who invest in them. FundedHere in Singapore is one example of an equity crowdfunding platform.
- Debt
Another type of crowdfunding which is an investment is debt-based crowdfunding, also known as P2P lending. The money that is pledged by the investors will eventually be repaid with interest by the firm that you are supporting. One example of a debt investment platform is Funding Societies, available for Singapore investors....