Initially, it is the cultural world that calls for this type of funding. Now it has become a funding available to project leaders in a variety of fields.
WHAT DOES CROWDFUNDING CONSIST OF?
Project leaders can call on different types of funding such as public and private funding. Via its website www.statutentreprise.com, the company offers online help in finding financing for entrepreneurs. The term usually means crowdfunding. Participatory financing known as crowdfunding is a set of financing tools from which the entrepreneur can benefit. Crowdfunding is a complementary method to obtain financing for the creation of a business or to support its development. It is done through crowdfunding platforms. It consists in collecting funds from different contributors who are free to choose a project they want to finance. A practice that tends to develop thanks to the internet. An alternative to bank financing. Disintermediation is the major advantage of this type of financing.
THE DIFFERENT FORMS OF CROWDFUNDING
Participatory financing comes in many forms. First, the first form is crowdfunding in the form of a donation. It can be offered without consideration or with a symbolic counterpart. This form of financing allows a product to be tested in the market. The called matching donations imply that the contributor will receive a reward in return in the form of gifts or promotional items. Crowdfunding in the form of a loan is also called crowdlending, and is only done via loan platforms. The sums must be repaid within a maximum of 7 years with or without interest or loans in minibon. For interest-free loans, the amount is capped at 5,000 euros, while for interest-bearing loans, the regulation provides for an average rate of 8% and an amount of 2,000 euros. Capital investment is a financing tool enabling contributors to become shareholders in the project. It takes the form of a participation in the company’s capital. The participation can take several forms such as an investment in capital, bonds or royalties. The investor is remunerated in the form of dividends or interest or commissions on turnover.
CHOOSING A CROWDFUNDING PLATFORM
A multitude of crowdfunding platforms are now available online. They connect entrepreneurs and the public who want to support a project. Some platforms have specialized in specific projects such as real estate crowdfunding or renewable energy crowdfunding. Others are generalist. It is advisable to consult the platforms’ directories to make your task easier. However, these platforms must be subject to a specific status provided for by law in order to strengthen the protection of contributors.