What Are The Different Types of Crowdfunding?

What is crowdfunding?

Crowdfunding is a means of raising money to fund a business or project by using small amounts of money from many individuals (the crowd) rather than large amounts from just a few investors, as was the traditional way.

In my last post How Safe is Peer-to-Peer Lending?, I mentioned that there are different types of crowdfunding. These are often not clearly explained by the media because crowdfunding is a new and fast moving industry, and a result this can lead to some confusion among the public.

The 4 Types of Crowdfunding

There are 4 main types of crowdfunding.

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How safe is peer-to-peer lending?

Is P2P Lending Really Safe?

Since we started crowdfunding in 2012 Crowdahouse have always been on the lookout for media coverage of crowdfunding. The industry has grown exponentially over the last few years and now practically everyone has heard of crowdfunding, whether or not they fully understand it. It’s hard not to have heard of it, as we’re constantly bombarded with multiple TV ads, print ads, giant billboards on London Underground platforms and yet more advertising on tube trains. And that’s not including online coverage.

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Latest Project: Pullman House

10% p.a. for 9 Months Term Fully Secured

Crowdahouse has just relaunched with an exciting business-to-business (B2B) loan project in which the Borrower, an experienced property investor, is looking to raise £500,000 to refinance his freehold block of flats in Darlington, County Durham.

The loan term will be for 9 months and pays 10% per annum interest, fully secured with a first charge over the property. Lenders pay no fees. This is an excellent opportunity for Lenders to try a short term loan with high interest return.

To find out more details about this opportunity, please visit our Make A Loan page.

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Crowdahouse Relaunches

Crowdahouse Relaunches with Secured Lending Model

Our story

Back in 2012 Crowdahouse created the world’s first crowdfunded property fund – the Crowdahouse Pioneer Fund. This was a truly innovative product allowing anyone to join a crowd and own investment property together.

The only problem was that in 2012, despite confirmation from our compliance advisors, the Financial Services Authority (FSA) wouldn’t tell us whether our crowdfunding model was acceptable to them.

For us, this was a serious issue. My co-founder also ran an FSA-authorised firm and we decided the risk of going to market with our Crowdahouse Pioneer Fund was unacceptable. We wanted to protect our Members’ interests as investors, which would have been impossible.

In September 2012, a Sunday Times feature brought us to the attention of a major international investment bank and so, because of the risks of crowdfunding, we continued working with private investors on our own property projects.

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Contact Crowdahouse here