What is crowdfunding, or crowdfunding?

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Crowdfunding is actually a studied device, which makes it possible to finance projects from financial contributions from individuals and various companies. This type of financing is mainly carried out on the internet via platforms that connect project leaders and multiple investors. In addition, it is also, for organizations in the social and solidarity economy, to be able to appeal to the general public for specific funding.

This year, our team shares the offices of Ekosea, the crowdfunding platform dedicated to the Ocean.

What are the types of crowdfunding?

With what this represents, you should know that there are several types of crowdfunding. Among these, we find:

  • the donation: for those who wish to finance a project that is close to their heart without waiting for a particular return, it is possible to support this associative project with a donation of 20 euros. This allows you to have the satisfaction that the latter will take place in due form,
  • the reward: this type of crowdfunding makes it possible to support a High Tech project that has still not been finalized. Thus, it will be possible to pre-order a product on the net by paying a certain amount. According to the collections, the project will be established and the donor will receive the product as soon as it is released,
  • the loan: in this case, we will speak more precisely of stock financing . Thus, traders may employ a participatory funding to continue operating without the problem of stock. The interest in this case is twofold. Indeed, the trader can on the one hand continue to exercise his function and the individual will be in a position to obtain a good return, similar to the classic investment. Thus, it will be possible to take part in large-scale projects, where anyone can put funds, according to their personal choices,
  • investment: for those who take part in large-scale projects, where it will be necessary to put funds, such as the financing of startups which will make it possible to increase the capital of the investor or even investment in the sector real estate, it is possible to move towards this last type of crowdfunding, from specialized organizations such as Homunity or Crowdfuding Immobilier.

What is the principle of crowdfunding?

The principle on which crowdfunding is based is to be able to collect a lot of small sums, in order to finance a relatively large project in very different fields. All contributors thus offer an amount of their choice, according to their savings capacity and their means. This type of financing system is classified in the solidarity economy sector. The contributors do not spontaneously seek to make a profit, but to participate in the realization of projects of trust, in which they believe. Under such a system, contributors can be legal entities, such as companies or private individuals. To get a more precise idea of crowfunding and funded projects, it is possible to cite the following examples:

  • associative, charitable and humanitarian projects, such as the creation of charitable associations,
  • cultural projects, such as the setting up of musicals, record production and the creation of plays,
  • professional projects, such as starting a business,
  • personal projects, such as financing weddings or others.

 

Crowdfunding is organized on internet platforms. These put project leaders and different contributors in touch. The operation is carried out as follows:

  • project leaders open an account and describe with all possible precision their project, the desired amount, as well as the mode of financing they expect,
  • taxpayers also open an account on the same platform and choose the amount they want to allocate to the projects they choose.

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