“We WILL help you overcome the struggle.” 

• Rewards-based crowdfunding: In rewards-based crowdfunding, backers contribute typically small amounts of money (typically between $1 and $1,000 but sometimes more) in exchange for a reward. This reward is often, but not always, the item being produced, such as a watch, an album or a film. Kickstarter and Indiegogo are the two most popular rewards-based crowdfunding platforms but there are LOTS of other platforms.
• Donation-based crowdfunding: In donation-based crowdfunding, donors generally donate small amounts (again, typically between $1 and $1,000, but sometimes more). There isn’t always a reward beyond the gratitude of the project creator or beneficiary (and possibly a tax deduction). It is typically used to raise money for a non-profit or a cause, like drilling a well or building a school in Africa or for a personal campaign like an individual’s treatment or medical bills. GoFundMe and Crowdrise are two popular donation-based crowdfunding platforms but there are lots of others.
• Equity crowdfunding: In equity-crowdfunding, investors give larger amounts of money (at least $1,000 and often a lot more). When investors give the money, they don’t get a reward, but instead, a small piece of equity in the company itself. As a result, equity crowdfunding is typically used to raise money to fund the launch or growth of a company, not just initiate a creative project or cause. Often, these companies go on to raise money from angel investors or venture capitalists. AngelList and Crowdfunder are two of the most popular equity-crowdfunding platforms in the United States, but there are lots of others.
• Debt crowdfunding: In debt-crowdfunding, it’s not “backers” or “donors” who give money, but lenders. Unlike other forms of crowdfunding, it’s NOT an exchange for a reward or equity. The investors don’t get a reward and they don’t get a piece of equity in the company, but instead they make a loan with the expectation to get paid back the principal plus interest. So it’s a lot like loan from the bank, but instead of borrowing one larger amount of money from one bank, you borrow smaller amounts of money from multiple people. Debt-crowdfunding can be used to raise money for lots of reasons, like credit card refinancing, debt consolidation, home improvement, a car or other reasons.

With very different terms and requirements, it’s necessary to understand the nuances involved with each branch of crowdfunding so as to choose the path most relevant to your goals and needs.