What is crowdfunding

Crowdfunding means to raise funds from the general public through an Internet platform, as detailed below:

I. Origin and definition of crowdfunding:

Crowdfunding originated in the U.S., and it was initially used to help some people with creativity and ideas through the Internet to the public to raise funds and resources to achieve their goals. With the popularization and development of the Internet, crowdfunding has gradually become a global phenomenon, accepted and used by more and more people.

Two, the definition of crowdfunding:

Crowdfunding is carried out through the Internet platform, and it is a kind of fast and efficient way of financing using Internet technology. The purpose of crowdfunding is to achieve a specific goal or to complete a task, which can be entrepreneurship, public welfare, culture, science and technology and other fields.

Three types of crowdfunding:

1. Reward Crowdfunding

Attracts backers to participate in crowdfunding by providing them with rewards or rebates. For example, some startups will raise money from the public through rewards crowdfunding, while offering rewards such as discounts on product samples to backers.

2, donation crowdfunding

Through donations to backers to get money or resources. For example, some public welfare organizations will raise funds from the public through donation crowdfunding for charity or social welfare projects.

3, equity crowdfunding

Through the provision of equity to backers to obtain funding and resource support. For example, some startups will raise funds from the public through equity crowdfunding, and at the same time provide backers with shares or equity in the company.

4, debt crowdfunding

To get financial support by providing debt to backers. For example, some real estate projects will raise funds from the public through debt crowdfunding, while offering debt relationships to backers.

Fourth, summary:

Crowdfunding is a new type of financing, with the characteristics of breadth, diversity, flexibility and popularization, which has been widely used in various fields and industries. Through crowdfunding people can realize their goals or complete their tasks faster, and can also better utilize the power and wisdom of the public to make greater contributions to the development of society and mankind.