Crowd Funding

  • ① Companies that have creative ideas or business plans
  • ② use “collective intelligence” on the online portal of brokerage
  • ③ and procure funds from many finance suppliers
  • ㆍCrowd funding is a compound term of English word ‘crowd’ that means mass of people and ‘funding’ that means financing. It refers to an act of creative    entrepreneurs or fund demanders raising funds from many and unspecified small investors through crowd funding brokerages who intermediate financing    from online such as the internet.
  • ㆍUnlike indirect finance through financial intermediaries (e.g. banks), crowd funding is based on the development of IT technology in which finance suppliers    connected via online such as the Internet have direct transactions through crowd funding platforms as a form of P2P (peer to peer) finance.

Types of Crowd Funding

ㆍCrowd funding can be divided into donation/sponsorship type, loan type, and securities type (investment type) according to the fundraising and    compensation method.

  • 01 Fundraising Method
    ㆍPayment of donations & contributions
    ㆍParticipation in loan contract
    ㆍInvestment in securities
       (such as stocks, etc.)
  • 02 Compensation Method
    ㆍFree or nonmonetary reward
    ㆍMonetary reward (interests)
    ㆍMonetary reward
       (shares, dividend, etc.)
  • 03 Major Examples
    ㆍPrototype sales in the field of culture,
       art, & welfare
    ㆍIndividuals and business owners who
       need emergency funding, etc.
    ㆍStartups in the initial stage
  • Loan type is sometimes viewed as an investment contract securities.
  • Donation type is used when there is no reward for finance suppliers or nonmonetary rewards (thank you cards, gifts, etc.) that are not directly associated with the provided fund is given. It is usually common in the fields of culture, art, and welfare.
  • Sponsorship type is similar to donation type but is for when nonmonetary benefits that are directly associated with the purpose of fundraising are provided to finance suppliers asrewards.
  • Loan type is used when interests are provided as benefits in return for financing. Individuals or business owners who cannot easily use financial companies such as banks raise funds through this.
  • Securities type is used to allocate the profits gained from business by receiving securities and stocks as benefits in return for financing. Seed or startup companies usually become the demanders of funds.
  • CrowdNet
    In CrowdNet, which was built by the Korea Securities Depository as part of the support policy to develop the crowd funding market, the issuer and investor can view the issue and investment limits, and those interested in crowd funding can check related information and statistical data.
    Click to go to Website
  • OpenTrade
    OpenTrade is No.1 investment type crowd funding platform. It provides various services and networks besides financing such as mentoring, recruiting, and promotional marketing needed for startups. Please watch the growth of your company and invest in its future at OpenTrade!
    Click to go to Website
  • Wadiz
    By going beyond the existing method of traditional financial institutions’ financial support based on high credit rating and profit rate, Wadiz Is sponsors the projects of individuals, companies, and groups that save people, warm the regions, clean the world, and create a society for mutual growth.
    Click to go to Website
  • Ucanstart
    Ucanstart leads a hybrid-type crowd funding that induces a positive cycle of ideas and investment. Through SNS, ucanstart connects investors to the various idea providers who engage in creation activities such as games, performances, art, photography, and sports in the fields of art and culture.
    Click to go to Website

한양대학교

Center for Global Entrepreneurship, HANYANG UNIVERSITY
HIT #504, 222 Wangsimni-ro, Seongdong-gu, Seoul, 133-791, Korea
Tel: +82-2-2220-2861 Fax: +82-2220-2869 Email: startup@hanyang.ac.kr

© 2016. Center for Global Entrepreneurship. All rights reserved.