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.