What are the characteristics of crowdfunding?

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Increasingly democratized, participatory financing, or crowdfunding, allows you to use various patrons in order to raise funds for a personal and/or professional, or even cultural, project. In France, it was the start-ups Kickstarter and KissKissBankBank that helped popularize this very particular type of financing. To date, participatory financing has expanded and is fully integrated into a new economic system.

Here's everything you need to know if you're considering crowdfunding investing.


Crowdfunding, although relatively recent on the economists ' scale , already responds to well-established rules and specificities.

The key mom database characteristics of crowdfunding are:

- Crowdfunding , which is literally the definition of crowdfunding. Indeed, the very principle of this financing is based on the participation of many patrons. Thanks to community involvement, fundraising is faster and more secure. It does not rely on a single donor and the feeling of co-ownership of the project makes it more stable and viable.

- Greater accessibility. With crowdfunding, the possibility of potentially fundable projects and initiatives is expanding. Whether for a novice entrepreneur or even a large company or association, crowdfunding offers a window of action, where banking institutions could have expressed doubts about the financing of a particular project.

- A diversity of donor profiles. In crowdfunding, contributors to the project can come from all walks of life. Thus, we can find family, friends and close social circle, but also interested investors or people who are passionate about your project.

- Flexible funding. The fact that crowdfunding relies on the multiplication of contributors to finance the project allows each donor to promote with a donation according to their desire/need/financing capacity. Crowdfunding breaks down financial barriers and encourages participation from as many people as possible.

- Encourage exchanges with project leaders. Project leaders are no longer obscure inventors. Indeed, crowdfunding creates a space for dialogue where the entrepreneur presents his arguments in favor of his project, talks about its progress and answers questions from contributors.

- Fund and be rewarded. A key feature of crowdfunding is the ability to offer rewards to contributors based on their level of participation. These rewards can be of various types depending on the project leader and are clearly listed when donating.