Economy and Business
Crowdfunding, also known as micropatronage, is an alternative to bank loans, to collectively fund a project, service, product, etc. Based on the use of Internet, we can find numerous online participatory funding platforms that allow individuals to support and fund different initiatives through donations, patronage, loans or investments.
- What is crowdfunding?
- Organizations promoting crowdfunding
- Studies and reports on crowdfunding
- Crowdfunding, crowdsourcing and fundraising, differences
- Types of crowdfunding
- Crowdfunding and law - legislation of reference
- Crowdfunding and politics
- Crowdfunding and economics
- Crowdfunding, arts and humanities
- Crowdfunding, psychology and education
- Crowdfunding, science and academic research
- Critical trends and curiosities
- Get up to date with crowdfunding
What is crowdfunding?
Some tools to define and understand crowdfunding and its increased popularity internationally.
Organizations promoting crowdfunding
Organizations that promote and support crowdfunding.
Studies and reports on crowdfunding
Different organizations worldwide have presented studies and reports to theorize about crowdfunding and its evolution.
Crowdfunding, crowdsourcing and fundraising, differences
There is general confusion, caused by the similarity of denominations, between crowdfunding, crowdsourcing and fundraising. Each of these terms involves different tasks, with different ends. Next, we explain crowdsourcing and fundraising, in order to distinguish them from crowdfunding.
What is crowdsourcing?
Crowdfunding is a type of crowdsourcing. Below you will find more information on crowdsourcing, in order to understand how it differs from crowdfunding. We can first define it as a system of collaboration and outsourcing of tasks to achieve results, products, services, etc.
What is fundraising?
The idea of crowdfunding comes from fundraising, but is reformulated. While fundraising means obtaining funds for charitable ends and for not-for-profit organizations, crowdfunding is obtaining funds for projects.
Types of crowdfunding
Crowdfunding is an overall form of collective funding. But we can differentiate four types as the most common and outstanding: equity crowdfunding, reward crowdfunding, crowdlending and donation-based crowdfunding. Next, we present these four types conceptually, provide lists of the most representative and specify examples of multidisciplinary platforms based on each of these types.
Main crowdfunding platforms
Internet facilitates the rapid proliferation of crowdfunding platforms, and it is important to be able to revise diverse crowdfunding platforms before creating a project or investing in it, in order to select the most appropriate one for each case.
Investment Crowdfunding brings together natural or legal persons, the so-called investors, with natural and legal persons asking for funding for their project. These investors finally form part of the body of shareholders of the project and can even receive profits.
With reward crowdfunding, the patron, the project funder, receives compensation in exchange for a financial contribution.
Also known as debt crowdfunding. The economic contributions to the project are returned to the investor at a given interest rate. It is important to differentiate between P2B (peer-to-business or loans between individuals and businesses) and P2P (peer-to-peer or loans between individuals).
With donation-based crowdfunding, the people who provide funding receive nothing in exchange.
Crowdfunding and law - legislation of reference
With the rise of crowdfunding and the number of platforms dedicated to this form of funding, governments everywhere have had to legislate these new forms of funding, establishing an appropriate regulatory framework for crowdfunding.
Crowdfunding and politics
Crowdfunding has also reached the world of politics, as an alternative to funding based on bank loans. Different notable politicians, such as Barack Obama and Pablo Iglesias, use this participatory funding for their political initiatives.
Crowdfunding and economics
Equity crowdfunding and crowdlending are the two most common types of crowdfunding in terms of crowdfunding linked to economics and business.
Crowdfunding, arts and humanities
Crowdfunding also impacts the arts and humanities.
Patronage has always played an important role in culture. Crowdfunding has popularized the search for funding and has become widespread around the world.
Crowdfunding publishing platforms help and support new writers. Self-publishing is not always done by searching for funding. Despite this, both are good options for publishing a book.
Crowdfunding, psychology and education
Crowdfunding also impacts the psychology and education.
Crowdfunding and education
There are dozens of platforms for funding education and teaching around the world. There are also platforms aimed at teachers searching for specific funding to carry out education or research projects.
Crowdfunding and psychology
Crowdfunding and funding platforms enable scientific studies applied to psychology to be carried out.
Crowdfunding, science and academic research
Parallel to public funding, various scientific and technological projects call for public collaboration through crowdfunding.
Critical trends and curiosities
Crowdfunding is trending, which does not mean that it does not have its weaknesses or its critics, who are less optimistic with regard to the reliability of the system when it comes to funding certain types of project. The following are a few more critical views of crowdfunding and some peculiar projects that have taken the world by surprise, either because of the amount collected or because of the fact that they have turned out to be a scam.
Get up to date with crowdfunding
Crowdfunding is also present in the media with news updates on the subject, for its dissemination or analysis, and in specialist magazines.