What is crowdfunding?
Crowdfunding is an alternative and innovative financing tool that allows companies to finance themselves without going through traditional financing channels, especially banks. Companies collect funds directly from Internet users (the crowd) in order to finance their project. Funds are collected from the public via participatory financing platforms.
Crowdfunding: how does it work?
There are three types of participatory financing:
- donation: with or without non-financial counterparts
- the loan: which makes it possible to finance projects via free or interest-bearing loans
The investment in shares that allows the company to finance its project through a capital increase or by issuing bonds. In the case of financing by shares, the investor is remunerated in the form of dividends or capital gains realised on the resale of its shares.