CrowdFunding (Peer to Peer Lending)

 

Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people, or a smaller number of High Net Worth investors.

Crowd funding can take various forms

  • Debt based loans to successful applicants with the rates determined by the subscriptions from the Crowd
  • Equity - through the provision of finance in the form of equity
  • Reward - used for a wide range of purposes, including motion picture promotion, free software development, inventions development, scientific research, and civic projects
  • Litigation - allows individuals to invest in legal disputes, globally, allowing those in need of litigation funding anywhere in the world to obtain it from their peers
  • Charity - is the collective effort of individuals to help charitable causes

There are many options and it is vital for a successful application, to know what needs to be included and exclude in the proposal.