Non-Equity Crowdfunding
Non-Equity Crowdfunding is a crowdfunding approach where backers receive rewards or products instead of equity in the company.
Benefits
Non-equity crowdfunding helps startups raise funds without diluting ownership, engage with early adopters, and validate their product or idea in the market.
Frequently Asked Questions
What is non-equity crowdfunding?
Non-equity crowdfunding is a fundraising method where backers support a project or business in exchange for rewards or products, not ownership shares.
What are four types of crowdfunding?
The four types of crowdfunding are donation-based, reward-based, equity-based, and debt-based crowdfunding.
What are non-equity grants?
Non-equity grants are funds provided to startups or projects without requiring the recipient to give up any ownership or equity in their company.
Key Takeaway
Non-equity crowdfunding is an effective way for startups to secure funding by offering rewards or products to backers, preserving equity while building a supportive community.