CrowdFunding refers to the practice of funding a business or project by raising multiple small amounts of capital from multiple people via the internet and social media.

There are a variety of crowdfunding types, including Reward-based, Equity-based, and Debt/Loan-based.

Reward-based crowdfunding means that the new or early-stage business is funded by obtaining financial support from multiple funders who receive a reward in exchange for early-stage funding. These rewards may include merchandise, early access to products, VIP treatment, etc.

Equity-based crowdfunding involves funding a business by offering shares in the company in exchange for funding from multiple funders. These funders receive ownership in the business, and can also provide valuable expertise and access to networks.

Debt/Loan-based crowdfunding means that a business is funded by obtaining smaller loans from multiple lenders in exchange for the business paying interest. These lenders are entitled to an interest for the duration of the loan.

IMPORTANT NOTICE: CFIC is not a registered broker-dealer. CFIC does not offer funding advice, advise on the fundings for businesses listed by the entrepreneurs on the site, or recommend or otherwise suggest that any funder participate in a particular company, or that any company offer listed businesses to a particular funder. CFIC takes no part in the negotiation or execution of transactions for funding of any of the listings on the CFIC site. CFIC facilitates the website that Businesses and Funders can use to introduce each other. CFIC does not control or endorse messages or any businesses or funders and disclaims any responsibility with regard thereto. CFIC has no obligation to review, monitor, or maintain any user messaging.

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