INDUSTRY FOCUS alternative financing models crowdfunding
INDUSTRY FOCUS alternative financing models crowdfunding
Crowdfunding is a win-win for everyone .
Developers have an alternative funding source and can market themselves to an international community . Investors have access to investment opportunities with good returns that would otherwise not be available .
Realty Africa is a services company in the sub-Saharan region . Their dream is to empower local landowners , developers and architects in sub-Saharan Africa by developing new services and seeking partnerships with other companies . They want to create a total service portfolio that supports local real estate professionals and enables their businesses .
Realty Africa offer a unique platform where property developers can source funding for their real estate projects by marketing them to local as well as international investors : crowdfunding . They strongly believe in the future of the African real estate market and the impact that these developments have on the local community . At the same time , these projects will make excellent investment opportunities .
Africa has a long history of crowdfunding . Whole communities have been known to pool funds to create a building . This approach to financing not only facilitates the funding , but also creates a feeling of mutual ownership and care for the longer term . Realty Africa is enabling the African community to take this concept to the next level by moving the process onto the Internet , with its much wider reach , and thus allowing a national and international investor community the opportunity to participate in projects that would otherwise not be available .
Crowdfunding is a win-win for everyone . Developers have an alternative funding source and can market themselves to the local and international community . Investors have access to investment opportunities with good returns that would otherwise not be available previously .
WHAT IS CROWDFUNDING ?
Four different crowdfunding models exist today .
The original concept was donation-based crowdfunding , a way in which people could donate without receiving anything in return . This typically applies to charity causes of different kinds .
The second model to evolve was rewardbased crowdfunding , with platforms such as Indiegogo and Kickstarter . This helps companies collect small contributions from people to develop a product or service . Backers donate to projects that they believe in , developed by companies they want to encourage . In return , they receive a reward in the form of a product or service that has been developed with the funds committed . These rewards are typically called perks , and a company usually offers different kinds of perks at different contribution levels . These platforms are also ideal as a market research tool , as the backers will let you know immediately which perks they like and which they don ’ t .
The next model to appear was debt crowdlending , basically a peer-to-peer