Crowdfunding
Crowdfunding is the method of raising money, typically using the internet and social media, to ask a large number of people each for a sum of money in return for equity, rewards or the loan returned with interest. Money pledged is combined to help reach the funding target. Pledged money falls into two categories: all or nothing or keep what you raise. In all or nothing backers are not charged if the funding target is not reached, otherwise, applicants keep whatever funding has been raised.
View our handy crowdfunder guide - How to crowdfund your idea (PDF 234KB) to create your own crowdfunding page.
Types of crowdfunding
There are 4 main types of crowdfunding:
- Equity
- Lending (Peer 2 Peer)
- Reward
- Donation
Equity: where a percentage of a community enterprise, or business, is sold as small parcels of non-tradable shares in return for pledges of money.
Lending (Peer 2 Peer): where a loan consisting of a collection of individual pledges is made available to a borrower in return for repayment of the loan with interest.
Reward: where a reward, typically a product or service, is offered in return for a pledge of money.
Donation: where money is pledged for no specific tangible return.
Contact
For advice and support on how to crowdfund your idea please contact Community Economic Development and Community Partnerships.