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What is Crowdfunding?

A simple explanation of Crowdfunding

The Crowdfunding is a financing technique that let you create and publish a project on PROPOSIZIONE.COM and to ask for financing it internet users.

The English word Crowdfunding means "financing from the crowd". A similar word is "Crowdsourcing", that is when a company share its knowledge and employers with other companies or people to achieve a result that, otherwise, would have been too difficult to achieve.

Crowdfunding collects many small donations from a large number of people, to make a project become reality.

Crowdfunding was born in Australia, but it soon became widespread in the USA, England and many other countries.

Crowdfunding is divided into 4 categories (or models):

Reward based: based on reward. Donors that decide to donate a sum of money to a project, receive a reward. For example, if you donate to a project for an art exhibition, as reward you can get free tickets, or autographed posters, or a signed work of art and so on.

Lending based: based on micro lending between individuals. Donors that believe in a project and lend money for its implementation. Money will be returned when the project get to life.

Donation based: based on philanthropic donation or sponsorship.

Equity based: based on the idea that donos receive equity interests. If you "invest" in a project then you will receive the company shares.

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