In this video, Jacqueline explains what crowdfunding is and for which entrepreneur it is suitable. Crowdfunding (also called public funding) is an alternative way of financing a project. Crowdfunding is a form of financing that is increasingly used by both start-ups and existing companies. With crowdfunding, you as an entrepreneur ask the crowd of potential investors to invest in your plan.
There are various forms of crowdfunding. This can be crowdfunding for equity and debt to grow your business. When participating in equity, an investor offers one or more shares in equity. Loan capital involves crowdfunding via a loan. In that case, the money seeker asks for a loan for a certain amount. You can also hold a crowdfunding for sponsorship. When sponsoring, the capital seeker offers a certain consideration instead of the usual repayment. Finally, you can request donations for a good cause. With donations, the money seeker asks the crowd if they want to invest money in the realization of a charity.
Crowdfunding has only recently been known in the Netherlands and is originally from America. In crowdfunding, the money seeker (usually) uses an online platform. Crowdfund platforms are available for all specific sectors. Bee douw & choirs you will find everything you need to know about crowdfunding. They also advise which platform is best for you.