100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Paper on Alternative Forms of Financing $3.23   Add to cart

Other

Paper on Alternative Forms of Financing

 7 views  0 purchase
  • Course
  • Institution

For the professional product in period 2, you must describe and explain a form of financing. This word document explains the topic of Crowdfunding. This was used last year for the professional product. I also obtained the professional product with this.

Preview 1 out of 3  pages

  • October 6, 2022
  • 3
  • 2021/2022
  • Other
  • Unknown
avatar-seller
Paper on Alternative Forms of Financing
Crowdfunding


Short description

Crowdfunding literally means collecting money from a crowd. Crowdfunding is via the internet, so it
is all online. You start at a crowdfunding platform from your liking, then you can create a
crowdfunding campaign for your business. You add a description of your company and a certain
amount of money as target. You promote your company and share the link to find investors.
Through the link they can invest in your company and the investors can choose how much they want
to invest.



Different types of crowdfunding

There are different types of crowdfunding, and they all have a different type of payment. Most of
the time investors want something in return to pay them back. There are four possibilities of
crowdfunding and their payments:

● Equity --> Investors buy stock of your company and get a dividend.

● Loan capital--> Investors provide a loan through crowdfunding. You can choose the
accounting rate of return and term of payment.
● Compensation --> You will give the investors compensation by a product or by a service. For
example, if your business is a clothing company, then you will give them free clothing of your
brand.
● Donation --> Investors can also decide that they want to give your company their money as a
gift and do not want anything in return, however you will have to deal with gift taxes.



Motivated explanation

Mies-and-scène is a small business which wants to have a bigger target audience and needs money
to rent theaters, to buy costumes etc. So, crowdfunding would be a great way to collect money, also
because they're a small business and do not make a lot of profit. If investors choose to invest by
compensation, Mies-en-Scène can offer free theater shows in return.



Expected costs

Each crowdfunding platform will ask administrative costs. The average amount of administrative
costs is about 5% of the total amount of the money that will be collected. The amount of
administrative costs is different for each crowdfunding platform. Most of the crowdfunding
platforms do not have other costs, but this is also different for each platform. Some platforms will
ask a certain percentage of a donation or an amount of money for each transaction etc.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller michvdberg. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $3.23. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

60904 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$3.23
  • (0)
  Add to cart