With this method of raising money can be projects, products, the implementation of business ideas and many other similar equity or equity funds in Germany usually, in the form feed party Aryan loans or silent partnerships. A so-funded enterprise and their sequence are also referred to as an action. Your investors are a variety of people - usually Internet users, as is called for crowdfunding mostly on the World Wide Web.
VARENA Financial Services distinguishes four types of crowdfunding:
Donation-Based Crowdfunding (Crowd donation)
Reward-based crowdfunding (Crowdsupporting divided into crowdfunding and pre-selling)
Lending-Based Crowdfunding (Crowd Lending)
called equity-based crowdfunding, also equity crowdfunding
Historical crowdfunding can be found in the 19th century. As the base for the construction of the Statue of Liberty for example, was made possible by 160,000 individual donations.
In addition to national platforms, there are also regional crowdfunding initiatives.
These focus primarily on projects for start-ups in the region. VARENA Financial Services works exclusively only for foreign customers.
Crowdfunding is considered more as a model for the financing of niche projects; Equity crowdfunding designate a type of borrowing for businesses or homes.
Here, investments may be acquired in companies. These investments securitize a claim to a share in company profits, and often the sale proceeds and can be sold. When equity crowdfunding the risk is similar to the crowdfunding be distributed to numerous investors in small amounts; with financing from business angels or venture capital, capital is on the other hand usually applied by a few.
Typical sequence of a crowdfunding campaign
An action is characterized by a minimum amount of capital that needs to be leveraged by the mass before the action starts. In relation to the minimum amount of capital each member of the crowd (Crowd Funder) makes only a small financial contribution.
For this performance, the crowd Funder can get something in return, can take various forms (e.g. As rights, money, in kind), which can be then expressed as a monetizable value. In addition, the exchange may have an idealistic or altruistic value z. As supporting humanitarian projects that promise no economic return.
The communication between lenders and borrowers is realized via a platform on the Internet. Usually the borrower published on this platform a largely open tender, which is aimed at all business enabled Internet users; without restriction or exclusion of potential donors.