6. www.StratticaCapital.com
The 4 Types of Crowdfunding
Type Funders receive…
Financial
return
Donation -
No
Reward
Tangible rewards
Special experiences
Lending
Repayment of a principal
with/without interest
Yes
Equity
Company ownership
Capital gain
7. www.StratticaCapital.com
The 4 Types of Crowdfunding
Source: 2013CF The Crowdfunding Industry Report. Massolution.
Growth in funding volume by crowdfunding model
13. www.StratticaCapital.com
Crowdfunding Types Donation | Reward | Lending | Equity
• Include a video in your pitch
• Have money already committed before you go to the crowd
• Be active online
• Make sure the price is right
• Select a right crowdfunding platform
Successful Crowdfunding
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Reward vs. Equity
Criteria Reward-based Equity based
Backer Ownership None owns % of co.
Backer Involvement Limited
May be advisors/
employees
Amount No limits Legal limits
Ave $raised Smaller Larger
Frequency No limits Limited # raisings/yr
Reputation Higher risk Lower risk
Financial Disclosure No need to disclose
Publicize:
• financials
• business model
Product/Service Consumer Various
Tax $raised Tax Payable None
Regulations Light Heavy
Geography Most countries Few countries