Contribution vs. Securities-based Crowdfunding

Fundraising Instruments: Which one is right?
It is important to understand the differences between the various Business Crowdfunding instruments we make available to you, and decide which is best for your company based on your business goals and needs.

The 2  top level categories are Contribution and Securities-based crowdfunding.

Contribution is non-investment funding. This model fits companies who have products or services that supporters and contributors are willing to pre-purchase, contribute to, or support for personal reasons.

Securities-based funding gives ownership, or a promise of future revenue to investors in equity or debt.

If you’re considering Securities-based funding, one of the first top level considerations to ask yourself is, which model fits your business best? Are you in a high risk innovation-oriented company, that has potential for exponential growth if successful? Or, is your business a more traditional service, like a brick and mortar business, that will have a consistent revenue model, but less potential for explosive growth and scaling?

Read more at The Crowd Funding Times