Crowd Funding

Crowdfunding is a way of raising finance by asking a large number of people each for a small amount of money. Until recently, financing a business, project or venture involved asking a few people for large sums of money. Crowdfunding switches this idea around, using the internet to talk to thousands – if not millions – of

potential funders. Typically, those seeking funds will set up a profile of their project on a website such as those run by our members http://www.princelinkconsultants.com/index.php/crowd-funding. They can then use social media, alongside traditional networks of friends, family and work acquaintances, to raise money. There are three different types of crowdfunding: donation, debt and equity.

Debt crowdfunding

Investors receive their money back with interest. Also called peer-to-peer (p2p) lending, it allows for the lending of money while bypassing traditional banks. Returns are financial, but investors also have the benefit of having contributed to the success of an idea they believe in. In the case of micro finance, where very small

sums of money are leant to the very poor, most often in developing countries, no interest is paid on the loan and the lender is rewarded by doing social good. Sites include http://www.princelinkconsultants.com/index.php/crowd-funding 

Equity crowdfunding                                                                                                                           People invest in an opportunity in exchange for equity. Money is exchanged for a shares, or a small stake in the business, project or venture. As with other types of shares, apart from community shares, if it is 

successful the value goes up. If not, the value goes down. Sites include