What are the types of crowdfunding?

1. Equity crowdfunding: This crowdfunding model is not only suitable for ordinary entrepreneurial companies, but also suitable for some mature enterprises to raise funds. Equity investment is generally risky and has a long return period.

2. Public welfare crowdfunding: it is a non-profit crowdfunding service model, which helps people in need to provide some help through donations, such as helping some cancer patients, lonely elderly people and mountain children. Domestic fund-raising and crowdfunding platforms mainly include: crowdfunding in JD.COM, Easy Funding, Oxfam, etc.

3. product crowdfunding: fundraisers will thank investors for their help through returns and promise to give investors products or other benefits.

4. Lending crowdfunding: refers to fund raisers raising funds through interest return. Some p2p platforms are essentially loan crowdfunding or debt crowdfunding.

Extended data:

Precautions:

When planning to participate in crowdfunding financing for start-ups, we must first distinguish which start-ups are oversubscribed and which ones are undersubscribed. Of course, insufficient market may also lead to insufficient subscription, which needs attention.

The return on investment of start-ups completely follows the power law, that is, the best start-ups contribute most of the return on investment. However, judging from the recent financing situation of start-ups, most start-ups actually show signs of being exaggerated and oversubscribed.

For start-ups, the ideal crowdfunding is dominated by potential users of their products (such as human resource managers investing in new human resource management software). This can also be used to solve the problem of adverse selection, because the founders of start-ups welcome investors who know the value of their products, not traditional investors.

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