What is crowdfunding? How can I raise funds?

Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people, typically via the internet.

There must have been times when you have had that awesome idea, that eureka moment, an epiphany which had the potential to change the world or a simple idea like a DIY doll but the only thing that stopped you was lack of capital and a platform to tell people about it.

This is where Crystxl-PCP comes in, helping you get funds from people you know or people you haven’t even met for your project. That's the power of Crystxl-PCP.

Crowdfunding can be broadly classified into four categories:

  • Donation Based
  • Reward Based
  • Equity Based
  • Debt Based
  • Donation Based:

Donation Based:

Donation based is the simplest form of crowdfunding, where people can donate money towards a project, cause or company. Under donation cf, contributors receive no money or rewards in return. Rather, contributions are, as the name suggests, a donation.

Reward Based:

In Reward based people receive a reward in return for their contribution. Rewards are non-monetary. For example, you may receive a t-shirt, a discount, or an opportunity to pre-order the product that’s being funded.

Debt Based:

Debt based (or loan based) is the first kind of investment cf, which allows creators or businesses to borrow money from a group of people rather than from a bank. With debt cf, investors lend money to a company and receive interest on their investment. Ideally, businesses are able to get funded at a lower interest rate. Quite simply, debt cf functions as a quick and easy business loan, yet companies pay interest directly to their investors rather than to a bank.

Equity Based:

Equity based (or equity-based),  is the second type of investment crowdfunding, where investors receive equity or company ownership in return for their contribution. With equity cf, the expectation is that investors will receive a dividend or appreciation on their investment. Equity crowdfunding platforms allow businesses to raise capital without undergoing the costly process of an IPO (initial public offering).
 

We are a crowdfunding platform which aims to bring to life innovations across the world.