What is Crowdfunding?

Historically, new businesses had to either get a loan from a bank or from family and friends to raise capital. Crowdfunding has given a new option for startups looking to raise capital.

 

Crowdfunding allows for multiple individuals to make a small contribution in these companies which allows them to fund their new projects.


Investors have 2 options available to them: rewards-based crowdfunding and equity-based crowdfunding. Rewards-based gives the investors some freebies or swag bags from the company with no monetary benefits. Equity gives you share ownership in the company, allowing you to participate in their profit.

A 100 dollars investment in Uber as a startup would now be worth north of half a million dollars as a publicly traded company.

 

Welcome to the movement.