In 2017 almost 130 billion euro has been raised by using different types of crowdfunding in the Netherlands. From this amount, only 0.75% is coming from equity crowdfunding campaigns, which is funding in exchange for shares. Chris Thomas, co-founder of the international equity crowdfunding platform Eureeca explains why more entrepreneurs should consider this form of crowdfunding and tackles the two most significant misconceptions.
Different crowdfunding forms
Crowdfunding is a form of public funding where the money for a project or company is collected from the crowd. It is an alternative form of financing of which four types exist in the Netherlands. Besides the most popular form of crowdfunding based on donations, the forms based on rewards and loans are doing very well this year. Equity crowdfunding is the less common form of crowdfunding. Here are the differences between the crowdfunding forms.