admin Aug 11, 2017
Some time ago we reported on the peer-to-peer Crowdlending model.
But there are other peer-to-peer financing models. What is the difference between the different models?
Crowdfunding is the English term for swarm financing. This means that a project is financed by a large number of people. Crowdfunding still distinguishes between many subcategories, but these are often simply summarized under the term "Crowdfunding". The borders are sometimes rather fluid.There are four categories of crowdfunding:
Crowdlending (peer-to-peer lending)
Crowdlending focuses on credit. This creates a loan agreement between the borrower and the borrower through the Crowdlending platform, whereby the loan with interest usually has to be repaid in regular installments.
Crowdsupporting (colloquially crowdfunding)
At Crowdsupporting a consideration for the financing of the project is promised. In this case, the financier finances the request of the applicant and receives a graded by the amount a specific for the project consideration, e.g. signed album at a certain amount financed in an album production. The amount does not have to be repaid.
Crowd Investing
The investor invests in shares of start-ups, which then promise a dividend or a higher company value in the future. This investment is accounted as equity by the companies and is not normally repaid. Since these are mostly young companies, the risk is usually correspondingly high that the company has no success and the investment must be written off.
Crowd donating
This refers to the classic operation of a donation. The donor receives no direct countervalue.
In Switzerland, Crowdsupporting is the best known and, in contrast to the other business models, already has a certain maturity. Numerous platforms vie for the favor of the crowd in various forms (art, sport etc.). The other two models are rather small, but grow fast. Crowdlending is currently the growth leader with growth of 579% in 2016 and we believe it will continue to grow this year. Here we feel a growing public awareness and an increasing demand for this exciting product.
