Types of crowdfunding: donation, reward, loan, bond, equity and royalty, sorted by what you hold
Crowdfunding types sorted by payoff, legal instrument and sector, with ESMA 2024 data, platform tickets and investor safeguards, as of 2 October 2026.
Updated: 2 October 2026
Crowdfunding sorts along three axes: what the contributor receives, the legal instrument behind it, and the sector funded. Contributors can receive nothing, a reward, interest, a share of revenue or a stake. ESMA counted €4.25 billion raised through active providers in 2024 (ESMA, December 2025).
Three axes: payoff, instrument and sector
Payoff covers what comes back to the contributor. Instrument covers the legal claim (a gift, a pre-order, a loan, a bond, a share or a royalty right). Sector covers what the money builds, such as property, music or software. Walliance defines real-estate crowdfunding as crowdinvesting instruments applied to the property sector. Its definition includes equity, lending and debt-security structures (Walliance help, read 2 October 2026). A sector label therefore leaves the claim you would hold undecided.
For small businesses, the European Commission's guide lists the payoff families below. Hybrid models, it notes, combine elements of several (Commission guide, undated PDF, read 2 October 2026).
| Type | Contributor receives | Instrument | Sources |
|---|---|---|---|
| Donation | No financial or material return | Gift | Commission guide; GoFundMe |
| Reward | A non-financial reward expected later | Pledge or pre-order | Commission guide; Kickstarter |
| Loan (P2P, loan-based) | Repayment with interest | Loan contract | Commission guide; FCA |
| Debt security | Interest on a company-issued bond | Transferable security | Commission guide; ESMA report |
| Equity | A stake in the business | Share, or a certificate over shares | Commission guide; Republic Europe; Invesdor |
| Profit or revenue sharing, royalty | A share of future profits or revenues, or payment for use of an asset | Revenue-linked note (Wefunder); fractional shares of royalty streams (SongVest); interest in a royalty revenue stream (Royalty Exchange) | Commission guide; Royalty Exchange; Wefunder |
On its crowdfunding page, updated 10 July 2026, the FCA names loan-based and investment-based crowdfunding as its regulated categories. ESMA separates debt-based crowdfunding from loan-based crowdfunding. Unlike loan-based crowdfunding, ESMA's debt-based category involves a transferable security; equity crowdfunding can also involve transferable securities (ESMA report, 2024 dataset). The four-type diagram of donation, reward, loan and equity hides that line.
ECSPR: the perimeter around business crowdfunding
Regulation (EU) 2020/1503 (ECSPR) covers the intermediation of business funding through loans and eligible investment instruments (Article 2(1)(a), EUR-Lex, adopted 7 October 2020). It excludes services for consumer project owners (Article 1(2)(a)). Crowdfunding offers above €5 million per project owner are also excluded, calculated over 12 months. That total is the sum of the owner's platform offers (securities, admitted instruments, loans) and its prospectus-exempt public offers (Article 1(2)(c)).
Article 1(2)(b) excludes other services related to crowdfunding services as defined in Article 2(1)(a) that are provided in accordance with national law.
ECSPR gives cross-border business crowdfunding a single authorisation, an EU passport, according to the Commission (Commission, read 2 October 2026). MiFID II exempts crowdfunding service providers as defined under ECSPR (Article 2(1)(p), ESMA rulebook). ESMA's market report places donation and reward crowdfunding outside its ECSPR dataset.
In the UK, the FCA says payment services can be regulated where the crowdfunding itself sits outside its perimeter. Regulation may protect a payment, the FCA adds. However, a contributor is unlikely to be protected if the project fails or does not deliver (FCA, 10 July 2026).
Market size: ESMA 2024, Cambridge 2020 and France in H1 2024
| Source | Period | Universe | Figures |
|---|---|---|---|
| ESMA | 2024 | ECSPR-reporting providers in 21 member states; 181 active, 229 authorised at end-2024 | €4.25 billion raised; loan-based 58%, debt-based 23%, equity-based 12% |
| Cambridge CCAF | 2019 and 2020 | Global alternative finance outside China, in US dollars | P2P/marketplace consumer lending $34.7 billion in 2020 (31% of volume) and $33.6 billion in 2019 (37%). Balance-sheet business lending $28 billion in 2020. UK $12.64 billion and Europe excluding UK $10.12 billion in 2020 |
| France Fintech barometer | First half of 2024 | France; donation, loan and investment models | €830 million collected; donations €72.8 million (€46 million without rewards, €26.8 million with); investment €123.7 million (capital €123.2 million, royalties €0.5 million); loans €633.5 million |
Added together, the three ESMA shares reach 93%, and this article leaves the remaining 7% unassigned. Applying the rounded shares to €4.25 billion gives about €2.5 billion loan-based, €1.0 billion debt-based and €0.5 billion equity-based, which are derived estimates. France's loan figure groups interest-bearing loans with bonds, so it cannot be matched to ESMA's narrower loan-based category. Donations, investment and loans add up to the €830 million total.
No growth rate is calculated from Cambridge 2020 to ESMA 2024. Geographies, currencies and models differ between the two, and Cambridge's consumer lending sits outside ECSPR. For the product-level view of loans, see what is crowdlending.
Platforms by type: starting amounts and payment patterns
| Platform | Type | Stated amount | Stated payment or right | Page date |
|---|---|---|---|---|
| GoFundMe | Donation | – | GoFundMe says supporters give without expecting anything in return | read 2 October 2026 |
| Kickstarter | Reward | Creator's reward level, or a pledge without a reward | Charged only if the project meets its funding goal before the deadline; the rules list equity as a prohibited item | published 23 July 2026, updated 13 August 2026; rules read 2 October 2026 |
| Indiegogo | Reward | Set per campaign | Flexible Funding ended for new campaigns on 16 October 2025. Live Flexible Funding campaigns at migration were converted to Fixed Funding, with goals adjusted based on funds already raised | updated 23 January 2026 |
| Ulule | Reward, donation or subscription | Set per campaign | Reward fundraising takes one-off contributions and needs a funding goal; funds transfer after success | read 2 October 2026 |
| Crowdcube | Investment (UK) | From £10 | Most new investments carry a 2.49% fee, minimum £5, some up to 5%. For investments in businesses opened to investment on or after 1 April 2021, a 5% success fee on profit applies at a full company exit. Crowdcube lists a separate 5–7.5% fee for secondary liquidity before a full exit (fees) | read 2 October 2026 |
| Republic Europe | Equity through a nominee | From £20 (community rounds) | Nominee holds legal title; the investor keeps beneficial ownership and the economic interest | read 2 October 2026 |
| Invesdor equity | Equity through STAK certificates | From €250 | A STAK holds the shares; investors receive certificates with economic rights | read 2 October 2026 |
| Invesdor bonds | Debt security | Usually €1,000 | Unsecured debt that generally ranks pari passu with an unsecured loan; annual coupons; maturities of about 4-10 years | read 2 October 2026 |
| Mintos | Loan-backed Notes | €50 per Set (Notes article); loan minimums of €50 primary and €1 secondary on the cited page | Note payments are fully contingent on repayment or buyback of the underlying loans | 17 August 2026; 12 May 2022; Notes article 23 September 2024 |
| PeerBerry | Loans | €10 per loan, manual (page) | Short-term loans pay at closure; long-term and leasing loans pay monthly principal and interest; business and real-estate loans pay monthly interest with principal at closure | read 2 October 2026 |
| Estateguru | Property-backed loans | €50 per loan | The investor chooses each loan manually; loans repay by annuity schedule or as a bullet at maturity and are secured by first-rank mortgages on property | read 2 October 2026 |
| Urbanitae equity | Property equity | From €500 | Development: 18–36 months, profit depends on the sale; rentals: quarterly distributions, 3–5-year horizon | read 2 October 2026 |
| Urbanitae debt | Property debt | From €500, per project conditions | Investor is a lender; interest is fixed by contract; the page names delay, default and possible capital loss | read 2 October 2026 |
| Wefunder | Revenue-share note | – | Promissory note repaid from business revenue, typical repayment cap 1.5–3.0×, annual or quarterly disbursements | read 2 October 2026 |
| SongVest | Royalty shares (US Regulation A+) | $98 per share, no minimum purchase (Queen listing) | SongShares are fractional shares of royalty streams; royalties are paid quarterly, 45 days after quarter end | read 2 October 2026 |
Each row describes the platform's own page on the date shown and is not an independent audit.
Property: one sector, several instruments
Estateguru reported €4.82 million of newly funded property-backed lending in August 2026 across Estonia, Lithuania and Latvia (Estateguru, 16 September 2026). That is credit exposure with property collateral. Urbanitae publishes separate pages for property equity and property debt. Its debt page describes the investor as a lender at an agreed interest rate. However, the equity page says investors become partners and acquire a direct stake in the company executing the project. One sector appears under two instruments, and the instrument page decides the claim.
Mintos describes a Set of Notes as a regulated financial instrument issued by a Mintos group special purpose entity. Each Set is backed by a pool of 6-20 loans.
Nominee and STAK: whose name is on the share register
Republic Europe's guide says the managed nominee of Seedrs Ltd (trading as Republic Europe) acts as nominee shareholder. Legally, the nominee is the shareholder of platform investments, while full beneficial ownership sits with the underlying investor. Its nominee overview adds that nominee investors keep the economic interest in their shares, including dividend and exit entitlements, subject to fees and investment terms. Invesdor describes a Dutch trust-office arrangement in which a STAK holds the shares and investors receive certificates with economic rights.
In both structures the instrument documents show who is registered and who receives the economics.
Published outcomes by crowdfunding type and sample
| Sample | Population and window | Result | What it measures |
|---|---|---|---|
| Mollick study, hosted on Kickstarter | Funded projects, April 2009 to May 2015: 65,326 projects; 456,751 backers surveyed, 47,188 responses (10.3%) | 9% of funded projects failed to deliver rewards; 65% of responding backers agreed the reward arrived on time. About 13% of backers of failed projects reported a refund or other compensation | Delivery of promised rewards; the 13% covers failed projects only |
| Companisto study (Springer) | 88 funded German startups, campaigns ended before 1 May 2019, outcomes to October 2020 | 38 failures (43.2%) and 9 exits (10.2%); modelled median survival 58 months and 63.4% eight-year failure probability; 15 startups remain for the seven-year analysis | Company events with differing follow-up lengths; an exit is not an investor return |
| Hornuf and co-authors (working paper) | 426 successfully crowdfunded German and UK firms on 14 platforms, February 2018 version | Follow-on funding and failure | Cross-country sample of successful campaigns |
| Mintos (statistics) | Loans weighted by outstanding investment, 2022 | Net −1.2%, gross 7.1% | Estimated annual losses deducted; fees and bonuses excluded |
| Estateguru (August 2026 report) | Loans issued from 2023 onward, August 2026 | Estateguru reports 3.6% non-performing, with €10.1 million of the €285.1 million issued classified that way | Status snapshot of that vintage, with the percentage as Estateguru prints it; older issuance excluded |
| Estateguru (August 2026 report) | August 2026 payments to investors | €6.82 million: €4.34 million principal payments, €1.92 million recoveries, €0.56 million earnings | Cash categories; the total is not interest income |
| Estateguru (recoveries update) | First half of 2026, published 22 July 2026 | €6.3 million of principal recovered (€7.5 million in 2025, €70 million cumulative); a further €5.3 million under signed agreements | Recovered principal in euros; no matching defaulted-loan total is given |
A late reward, an insolvent startup, a non-performing loan and a cash recovery are four separate events. None converts into another's rate, and the studies are 2009–2020 samples. For credit risk in loans, see crowdlending risks.
Safeguards by type
ECSPR rules in the table refer to offers within Regulation 2020/1503 and, where stated, to non-sophisticated investors. They do not automatically cover consumer lending, every loan-backed security, donation fundraising or the UK.
| Rule | Applies to | Content | Source |
|---|---|---|---|
| Knowledge assessment and loss simulation (Article 21) | Non-sophisticated investors, ECSPR offers | Simulation of the ability to bear loss at 10% of net worth; an assessment and a simulation, with no investment cap | EUR-Lex |
| Higher-amount checks (Article 21(7)) | Same | Above the higher of €1,000 or 5% of net worth: risk warning, express consent and demonstrated understanding | EUR-Lex |
| Reflection period (Article 22) | Same | Four calendar days; revocation without penalty | EUR-Lex |
| Key investment information sheet risk warning (Article 23) | ECSPR loans and investment instruments | Recitals 49-50 state that crowdfunding investments fall outside deposit guarantee schemes and investor compensation schemes | EUR-Lex recitals 49-50 |
| Mintos compensation | Notes only | Up to €20,000 for failure to provide investment services. Default of a borrower, lending company or issuer, price movements and the lack of a resale market are excluded. Legacy assignment investments are outside the scheme | Mintos help, 2 April 2025 |
| Restricted-investor statement | UK, restricted mass market investments | Investor states they will not invest more than 10% of net assets in aggregate in RMMIs (COBS 4.12A.25G) | FCA Handbook, updated 23 October 2025 |
| Cooling-off | UK, new consumers requesting to view direct offer promotions for restricted mass market investments (RMMIs) | Minimum 24 hours from the request | FCA review, updated 20 May 2024 |
Compensation for a provider's failure to deliver investment services does not insure the underlying borrower or asset.
A €1,000 budget in each crowdfunding type
The €1,000 budget is an editorial device for this comparison; no source reports such a transaction. Sources give payment patterns and consideration, and each offer's own documents supply the price, currency, fees and dates that a euro result needs.
| Type | Source | What the source fixes | Inputs needed from the offer |
|---|---|---|---|
| Donation | GoFundMe | Supporters give without expecting anything in return | None; no return to calculate |
| Reward | Kickstarter | The pledge links to the creator's listed reward | Tier price, shipping, taxes, estimated delivery date |
| Equity through a nominee | Republic Europe | Economic benefits tied to dividends and exit events | Currency, share price, fee, share class, allocation |
| Loan-backed Notes | Mintos | Repayments depend on cash received from the underlying loans | The Set's coupon, underlying schedules, fees, loss terms |
| Loans | PeerBerry | Monthly interest and end-of-term principal for business and real-estate loans | Loan rate, term, dates |
| Property equity | Urbanitae | Quarterly distributions on rentals, then a later sale, over a stated 3–5 years | Project stake, distribution assumptions, costs, exit waterfall |
| Revenue share | Wefunder | Repayment from a specified revenue base and percentage | Gross or net definition, percentage, deferrals, cap |
| Royalty | SongVest | Income tied to the listing's royalty stream and term | Dollar share price, euro conversion date, stream fraction, remaining term, distribution schedule |
Returns on loans are covered in crowdlending returns and yield, tax in crowdlending taxation, and the practical steps in how to invest in crowdfunding.
FAQ on crowdfunding types
Can a Kickstarter pledge buy shares in a project?
No. Kickstarter's rules list equity among prohibited items, and backers can pledge with or without selecting a reward (Kickstarter rules, read 2 October 2026). The pledge is collected when the goal is reached by the deadline, and delivery of the reward is a separate event.
What separates a crowdfunding loan from a debt security?
ESMA's 2025 report lists them as separate categories, with transferable securities found among the debt-based instruments. A Mintos Set of Notes is a regulated financial instrument issued by a Mintos group special purpose entity. A pool of 6-20 loans backs the Set, and the Set's payments depend on the repayment or buyback of those loans.
Who is the registered shareholder when investing through Republic Europe?
The managed nominee of Seedrs Ltd (trading as Republic Europe) acts as nominee shareholder. It is the legal shareholder of platform investments, while full beneficial ownership sits with the underlying investor (Republic Europe guide, read 2 October 2026).
How many days can a non-sophisticated investor reconsider an ECSPR offer?
Four calendar days from the offer or expression of interest, with revocation without penalty (Article 22). The FCA's 24-hour minimum cooling-off is a separate UK process. It is written for new consumers requesting direct offer promotions for restricted mass market investments (FCA review, updated 20 May 2024).
Is property crowdfunding equity or lending?
Both exist. Urbanitae splits its offers. The debt page calls the investor a lender (prestamista) paid contractual interest. Investors become partners with a direct stake in the company executing the project, the equity page says. Each page lists investments from €500 (equity, debt, read 2 October 2026).