Crowdfunding 15 Years Later: The Evolution of Collective Financing

Crowdfunding was once considered an alternative for financing ideas and projects, often viewed as a resource solely for artists or innovators short of traditional options. Fifteen years after its popularization, this model has radically transformed the financial landscape, allowing not only support for creative ideas but also investment a wide range of financial products. As crowdfunding evolved, various modes emerged, each with specific objectives and targets.

Types of Crowdfunding

‍Donation-Based Crowdfunding: This is the most altruistic type of crowdfunding, where people donate to charitable causes, artistic projects, or social initiatives without expecting a financial return. Exemplary for humanitarian or community support campaigns, it shows how crowdfunding can serve as a tool for social solidarity.

‍Equity Crowdfunding: Suitable for startups or SMEs seeking capitalization, this model allows investors to purchase shares of a company. Investors become shareholders and their profit depends on the success of the business. This type of crowdfunding is becoming increasingly popular as it directly connects investors with innovative businesses.

‍Lending-Based Crowdfunding (or Crowdlending): In this scenario, investors lend money to businesses or individuals through the platform, which must be repaid with interest. The interest rate is generally higher than bank rates, making it an attractive (but risky) option for lenders seeking higher returns.

‍Reward-Based Crowdfunding: This type of crowdfunding is ideal for products or services about to be launched. Investors receive rewards or project-related products in return for their investments, proportional to the amount of their investment. It is a popular choice for startups wanting to test a new product on the market and build a loyal customer base.

New Products in Crowdfunding

The crowdfunding field has seen the introduction of new financial products that broaden opportunities for investors and fundraisers:

Royalties: In this model, investors receive a percentage of the revenue generated by the funded product or service. It is particularly interesting for the music or publishing industry. In the music royalties market, OG Music is a bright example of how EvenFi revolutionized the approach to funding. Offering a platform where artists can directly connect with investors, OG Music allows investors to buy a share of the musicians' future royalties. With the assistance of EvenFi, OG Music has implemented an online platform in compliance with stringent EU regulations, ensuring security and ease of use, speeding up launch and allowing a focus on core business.

Buy-to-Rent: This form of real estate investment allows investors to buy a property to rent it out. It's a straightforward way to invest in the estate market and this can yield a steady stream of passive income. An excellent example in real estate crowdfunding is UnicornItalia, created by Angelo Abate in collaboration with EvenFi. Providing advanced technological tools and leveraging Angelo's deep knowledge of the real estate market, UnicornItalia offers investors an innovative entry into the real estate market. The platform ensures maximum transparency and efficiency in investment processes, positioning itself as a leader in the sector.

Rent to Rent: In this model, investors rent a property and sublet it to others. It is a strategy that can generate higher income streams than simply renting, but requires active management.

Solar Development: An innovative product that merges collective financing and sustainability. Investors finance solar development projects, often receiving a return from the energy savings generated or from the sale of electricity.

In addition to these emerging models, there is peer-to-peer crowdlending, similar to traditional lending but carried out through a platform that directly connects those in need of financing with investors. An example of a platform offering such a service is EvenFi, which allows investors to lend money to selected SMEs, with regulation ensuring transparency and security.

The diversification of available crowdfunding products today allows investors to explore new investment opportunities, tailoring their portfolios to various needs and interests, from charity to renewable energy, from music projects to real estate. With platforms like EvenFi enabling these investments, the future of crowdfunding seems increasingly rich in possibilities.

To explore further details or participate in crowdfunding projects, visit the https://web.evenfi.com/it