Crowdfunding

Crowdfunding is a method of raising small amounts of capital from a large number of individuals, typically via online platforms. It democratizes fundraising by allowing early-stage businesses to access public capital without relying solely on institutional investors.

Types:

• Donation-based: No financial return (e.g., social projects).

• Reward-based: Non-monetary returns (early product access, merchandise).

• Equity-based: Investors receive shares in the business.

• Debt-based (P2P lending): Backers earn interest on loans.

Popular Platforms:

Kickstarter, Indiegogo, Eureeca (MENA-focused), Beehive (UAE P2P lending).