Crowdfunding

Equity crowdfunding: Contributors invest in a company in exchange for equity shares (stock), which allows them to become co-owners and benefit from future gains if the company performs well.

This involves subscribing to financial securities (equity securities issued by corporations). The investor then becomes a shareholder of the company and is compensated through dividends. They may also realize a capital gain if they sell their shares.

What is the difference between crowdfunding and crowdlending?

• Crowdlending: A loan with repayment and interest (investment model).
• Crowdfunding: A form of participatory financing with or without a reward, but without direct financial repayment in most cases.