Comparison of crowd funding services
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Crowd funding (alternately: crowdfunding, crowd financing, equity crowdfunding) web sites provide Internet platforms which support the collective cooperation, attention and trust by people who network and pool their money and other resources for projects initiated by other people or organizations.
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Funding models[edit source | editbeta]
Crowd funding pertains to donation based fundraising for businesses or creative projects, typically via an online funding portal. Equity Crowdfunding pertains to equity based fundraising, in which equity ownership in a business is given in exchange for investment capital via an online funding portal. There are fundamental differences in the services provided by many crowdfunding platforms. Some platforms such as CrowdCube enable users to invest small amounts and directly acquire shares in start-up companies. Some others like Seedrs merge the funds to invest in new businesses, but works as a nominated agent.1
Money for goods[edit source | editbeta]
There are three basic models provided for – some sites offer a choice between them:
- All or Nothing (AoN) – When the fund-raising period is over, pledged money is only collected from the contributors if the fundraising goal is met. If the goal is not met, no money is collected.
- Keep it All (KiA) – Whether the project goal is met or not, all of the funds collected (minus commission) are handed over to the entrepreneur. If he or she has insufficient funds to meet the objectives, then it is up to the recipient to refund them to the contributors.
- Bounty – The funds collected so far are given to anyone who completes the project.
Name
Fundingmodel
Focus
Country
Notes
KiA
Entrepreneurs, small businesses, startups, and creative projects
First social funding platform for entrepreneurs and small businesses.
Bounty or AoN
Open-source software
Bounties are attached to github issues. Anyone can collect the bounty by submitting a pull request that resolves the issue.
AoN
Open-source software
Existing project developers put features up for funding that will be integrated into main branch.
KiA or AoN
Platform Creation for Universities, Nonprofits, and Faith-Based Organizations
US
Allows for white-labeled integration on existing websites
KiA
Education crowdfunding for college tuition, K-12 fundraisers, books and supplies, activities, sports equipment, student loan debt
KiA
Entrepreneurs, small businesses, non-profits, accelerators, incubators, universities, SBDCs, community programs
Czech Republic
First partner-based platform. Sources all campaigns from community partners.
KiA
Inventors, research, education, software, community support
Additional project promotion services are available
KiA
Funding for any kind of project - business, creative, arts, personal, charitable.
Fundraising backed by major celebrities such as Donald Trump.
KiA
Personal, charitable, entrepreneurial, and political causes
Canada
Available as an app for a Facebook page.
KiA
Personal, charitable, and political causes
US
Available as an app for a Facebook page. Charges a per credit card transaction fee.
KiA
Online fundraising website to raise money for medical expenses.
US
Provides personal fundraising coaches.
AoN
Fund scientific research
No tangible awards are given for backing, only personal satisfaction
KiA or AoN
Civic projects
Specializes in raising local match for securing federal and state grants
AoN
Pornography
Projects must first get enough votes from users before they are open for funding
KiA
Young children and students
US
Young students may raise money. Compliant with Children's Online Privacy Protection Act
KiA
Medical, educational, charitable, creative, entrepreneurial, and political causes
US, Germany
Business ventures[edit source | editbeta]
Crowd funding can be used to raise capital (equity) or borrow money. While organized informally, they typically involve large numbers of small investors or lenders:
- Equity – Investors receive equity in the company or entrepreneur that is raising funds.
- Property - Investors receive interests in the property from an owner who is raising funds.
- Loan – The entrepreneur or company borrows money and must repay it (typically, with interest).
- Other – There are a number of other schemes in use which are generally unique to particular services.
Name
Fundingmodel
Focus
Country
Notes
Solar Debt
Solar projects, available to general public in CA/NY and all US accrediteds
US
open, pre-JOBS Act
Equity, debt
Late stage start-ups and privately held companies at a pre-IPO or pre-acquisition stage
Equity, perks
Start ups and business ideas, entrepreneurs, small businesses, accelerators, incubators, crowd investors, angel investors
Netherlands
Responsible for one third of the Dutch crowdfunding market in 2012
perks
Books
UK
Acts as both a crowdfunding platform and a publisher. Launched Terry Jones' Evil Machines, the first[citation needed] book to be financed by crowd funding.
This list is incomplete; you can help by expanding it.
See also[edit source | editbeta]
References[edit source | editbeta]
Jump up ^ http://www.cfo-insight.com/financing-liquidity/alternative-finance/crowdfunding-sideshow-or-headline-act/
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