Tailwind Crowd Blog

Reward and Lending Models in the World of Crowdfunding

Posted by Tailwind Crowd Team on May 5, 2015 10:55:05 AM
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Become part of this fast-paced investment community and get involved with cutting-edge business ideas in return for great rewards, recognition and monetary gain! Crowdfunding is on the rise worldwide as investors and other entrepreneurial spirits team up and collectively support start-up companies on their journey to success. In fact, the predicted global value of crowdfunding in 2015 is a whopping $34 Billion! Bringing innovative new business plans to life by assisting with their start-up costs or lending to a company that you feel has great potential is what it’s all about.

In the Netherlands alone, crowdfunding doubled in 2014 going from €32 million to €63 million! Moreover, the total Dutch Alternative Finance Market has an average growth rate of 459%. Alongside getting funded, project owners know that the free marketing benefits that come with crowdfunding are imperative for early-stage feedback and project development.


Benefits of Reward-based Crowdfunding:

 

  1.     Reward Crowdfunding Allows  for a Global Reach

Contributors who are partaking in reward-based crowdfunding are not restricted to individual countries and they are also exempt from being governed by security laws.

  1. Become Part of a Supportive Team and Reap the Rewards

Crowdfunding is fuelled by passionate business minds so when you make that decision to join a team of supporters who are all in favour of collectively contributing the requested funds for a particular start-up company, the impact on motivation is phenomenal. The combined assets from a large range of people are pulled together and you are welcomed to back the company by providing them with advice and guidance.

  1. You Decide on Your Rewards

Each campaign will present you with a minimum of 3 package options detailing what you can get in return for the amount you are willing to invest. You can decide which level you wish to go in at.

Did you know?

Since 2012, European reward-based crowdfunding has increased from €24.0m to €120.3m in 2014 at an average growth rate of 127%. This is excluding the UK. In the Dutch market, the average growth rate for this type of crowdfunding is 211%.

Contributors who partake in Reward-Based Crowdfunding are often referred to as ‘supporters’. Find out how you can become a supporter in a few simple steps.

Lending Crowdfunding is a fantastic way to make an investment in a project you have an interest in or that you think has great potential. Invest a sum of money along with a few others who feel the same and help it achieve a successful launch.

 

Benefits of Lending in Crowdfunding:

 

  1.     Earn High Returns on your Investment

We love to watch start-up companies flourish and grow as a result of keen investors. Whether it be a little or large amount you wish to invest, crowdfunding is about pulling together and making it happen!

  1.     Safe and Secure Environment to Invest in Innovative Business Concepts                                                                 

Investing in worthy businesses or business ideas through platforms such as Tailwind Crowd is becoming more common! A lending agreement is signed and will be available for both parties to view at any time, via the platform. Here at Tailwind Crowd, we like to operate in an open book fashion. We make certain that you, the potential investor, is made aware of the risks involved with every project by providing you with a Risk Profile Score and, moreover, our Loan Calculator will consider third party risk assessment making sure you get a fair interest.

  1.     Combine your Investments with Rewards-Based Projects

In between lending, you can combine your investments and get involved with some reward-based projects too!

  1.     Reduce Risk by Diversifying your Investment

By separating your investment sum into smaller amounts and investing in multiple different projects, this decreases the level of risk involved.

Did you know?

Since 2012, European lending-based crowdfunding has increased from €7.8m to €93.1m in 2014 at an average Growth Rate of 272%. This is excluding the UK. In the Dutch market, average growth rate for this type of crowdfunding is 257%.

 

Become an investor today and start browsing through a variety of projects until you really find some that tickle your fancy.

 

Thank you for taking the time to read this and I hope it has been informative. Please feel free to comment and any questions asked will be responded to within 24 hours.



 

Topics: Supporters, Dutch Crowdfunding, Global Crowdfunding, Reward Project, Investors, Lending Project