Framework

Four types of crowdfunding

The question it answers

When a small business owner turns to crowdfunding, what should backers receive in return: equity, a reward, nothing (a donation), or interest on a loan?

Origin
UK Crowdfunding Association, n.d.; Zucchella, Hagen and Serapio, 2018
Diagram type
Comparison table
Level of analysis
Firm
Topics
Corporate financeEntrepreneurship & innovation
Stack of clay coins beside a rising glass bar chart, icon for finance

Diagram

Four types of crowdfunding

CriterionBacker receives
EquityA share of the business
RewardProduct or perk
DonationNo material return
LoanInterest, bypassing banks

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. UK Crowdfunding Association (n.d.) What is crowdfunding?No DOIukcfa.org.ukSource page
  2. Zucchella, A., Hagen, B. and Serapio, M.G. (2018) International entrepreneurship. Cheltenham: Edward Elgar Publishing.No DOIe-elgar.comSource page