>$50,000

<$50,000

REWARDS OR DEBT (P2P, P2B)

EQUITY

DEBT (P2B) or

EQUITY

$50,000-$500,000

You can raise significantly more funds

You will not have monthly cash outflow (as in debt

model)

You will give up a small % of shares, so will keep the control over the company’s

operations and planning

The most time consuming out of

three types of crowdfunding

Significant upfront costs and

– annual SEC filing expenses EQUITY

Pros & Cons:Lending:

REWARDS

Costs – depend on the amount to be raised.

Portal fees – 7.5%– 10% plus legal and accounting expenses, annual filing costs.

Very time consuming and it takes months to

get the funds

In the case of fixed funding there is a possibility that you

will not get any money

Huge competition for backers’ attention on

popular crowdfunding

portals

Not all types of businesses/products are a good match for

the rewards type

You keep your company’s ownership

You can raise significantly

more than your initial goal

You can use the campaign for customer engagement, marketing

and PR, pre-sales, beta-testing,

crowdsourcing, finding potential partners, distributors and

investorsYou don’t need to file

extensive documentation (as in equity crowdfunding) or to have high credit score

(as in P2P lending) or a profitable business (as in

P2B lending)

Costs – 7%-14% plus perk fulfillment and marketing expenses

YOUR BEST OPTION

Quick access to

cashYou keep your

company’s ownership

Costs:

0 (Kiva Zip) up to 15% for P2B and 7% to 35% for P2P

Must have a good credit score (P2P) or positive cash

flow (P2B)

Monthly cash outflow

AMOUNT

debt (P2B) or equity

Yes

debt (P2P) or rewards or equity

No

<1 month

equityrewards

debt

3-5 months 5-10 months

Month: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |

TIME

STAGErewards

rewards

debt(P2P)

debt(P2B)

equity(?)

equity

Startup Growth

P2P Lending – for startups in need for immediate cash and means to meet payment obligations

P2B Lending – for established businesses with positive cash flow to finance their expansion

REWARDS – for businesses operating in B2C market with reasonably inexpensive and innovative but not too complicated products. Must have social appeal; be able to produce the product within several months after the end of a campaign

EQUITY – for businesses that can’t (don’t want to) borrow money through P2B marketplace, companies in need to raise higher amounts of money. Must have cash upfront to fund the legal and accounting expenses and can wait for 5 to 10 month to receive the funds.

CrowdfundingFund Your Business

What Type of

Crowdfunding to Use to

Fund Your Business

www.CrowdfundProductions.com