We believe it is good to investigate before starting any project, so knowing these 5 types of crowdfunding you will have more information on how to take your campaign to the goal you want.

First we tell you that the types of collective financing are not differentiated by the category or purpose to which they are directed, for example, a campaign to renew the spaces of a school is not a school crowdfunding.

On the other hand, the financing will be differentiated by the method of consideration received by the people who donated for a project.

Types of Crowdfunding

Crowdfunding by Reward

This is the most common and popular. Here the donors of a project receive a reward, as the name says, these rewards can be gifts or thanks. In this type of financing the packages are seen by donation, that is to say, depending on how much is contributed, different products are given in exchange.

Crowdfunding for reward is useful for almost any type of project, you can do from a campaign on an innovative video game to raise funds to save the whales.

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Por Recompensa

Crowdfunding for Investment

It is also known as equity crowdfunding. In this case donors become investors, so you have to understand that they expect a return on their investment. For this financing we recommend having a capital or some guarantee that they will be able to distribute the benefits.

In crowdfunding for investment, project owners offer participation to their donors in exchange for part of the capital of the company. Here the people who contribute are facing a risk margin, because, if the campaign goes bad, they can lose the investment.

Equity Crowdfunding

Crowdfunding by Loan

In this type of financing you return to the people the money they invested plus an interest rate. Crowdfunding platforms by loan (or crowdlending) have quite restrictive selection criteria, since they want to make sure that people do not lose the money invested.

This is the financing method more similar to the conventional one, since, like the banks, it requires the owners of the idea to pay interest is a stipulated period of time. Even so, this type of financing is quite strong, the reason: the return of money is relatively fast.

Loan

Crowdfunding by Donation

Crowdfunding by donation is the most supportive of all, here the people who contribute do not receive any kind of reward. It is totally charitable. Campaigns that work under this concept tend to be more humanitarian, are used to help people in need or the reconstruction of a city after a natural disaster.

Generally, these projects are of short duration, they do not last more than 3 months.

5 Types Of Crowdfunding You Need To Know 1

Crowdfunding for Reward Donation

It’s kind of campaigns make sense when a person or a very recognized company, they lead. Here people donate to support a cause, but they also receive something in return, it can be a small participation in a movie or a thank you.

An example of the crowdfunding of donation for reward would be the campaign that created Star Wars to donate funds supporting Uniceff, as a reward the donors were allowed to be extras of episode VII of the saga.

Crowdfunding Donation Reward

Each campaign is different and have different purposes, so we suggest you study well the type of crowdfunding that best suits the goals you have or your business model. Choosing correctly under what financing parameter you are going to work will guarantee instant success in your project.

If you decided that crowdfunding for reward is what your idea needs, you came to the right place! Do not be afraid to write us in our chat that we will gladly help you create that campaign.

You might be interested: How does crowdfunding work in Latin America?

If you know someone who wants to create a crowdfunding campaign, share this post, it will be very helpful.

The right type of crowdfunding will guarantee success in your campaign.