Crowdfunding

2.

Models of Crowdfunding

2.1.

Donation-Based Crowdfunding

2.1.1.

Characteristics and Use Cases

2.1.1.1.

Non-Profit Orientation

2.1.1.2.

No Financial Return to Donors

2.1.2.

Primary Motivations for Donors

2.1.2.1.

2.1.2.2.

2.1.2.3.

Personal Connections

2.1.3.

Common Applications

2.1.3.1.

Charity Projects

2.1.3.2.

Medical Expenses

2.1.3.3.

Disaster Relief

2.1.3.4.

Personal Causes

2.2.

Reward-Based Crowdfunding

2.2.1.

Characteristics and Use Cases

2.2.1.1.

Pre-Selling Products or Services

2.2.1.2.

Creative and Entrepreneurial Projects

2.2.2.

The Pledge for Reward System

2.2.2.1.

Backer Incentives

2.2.2.2.

Delivery Timelines

2.2.3.

Tiered Reward Structures

2.2.3.1.

Multiple Contribution Levels

2.2.3.2.

Exclusive Rewards

2.2.3.3.

Limited-Edition Rewards

2.2.4.

Common Applications

2.2.4.1.

Creative Projects

2.2.4.2.

Consumer Products

2.2.4.3.

2.2.4.4.

Technology Prototypes

2.3.

Equity-Based Crowdfunding

2.3.1.

Characteristics and Use Cases

2.3.1.1.

Investment in Exchange for Equity

2.3.1.2.

Startups and Early-Stage Companies

2.3.2.

Offering Securities to the Public

2.3.2.1.

Shares and Ownership Stakes

2.3.2.2.

Disclosure Requirements

2.3.3.

Backers as Shareholders

2.3.3.1.

2.3.3.2.

Dividend Potential

2.3.4.

Regulatory Considerations

2.3.4.1.

Securities Laws

2.3.4.2.

Investor Limits

2.3.4.3.

Platform Registration

2.4.

Debt-Based Crowdfunding

2.4.1.

Characteristics and Use Cases

2.4.1.1.

2.4.1.2.

Borrower and Lender Roles

2.4.2.

Loaning Money with Expectation of Repayment

2.4.2.1.

Principal and Interest

2.4.2.2.

Repayment Schedules

2.4.3.

Interest Rates and Terms

2.4.3.1.

Risk Assessment

2.4.3.2.

2.4.3.3.

Default Management

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1. Introduction to Crowdfunding

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3. The Crowdfunding Ecosystem