Nature of Crowdfunding

What is securities based crowdfunding?

"The third type is securities-based crowdfunding, which is further divided into lending-based crowdfunding and equity-based crowdfunding."

"Lending-based crowdfunding is when individuals lend money to a company and the company commits to repay the loan at pre-determined intervals and interest rate."

"Equity-based crowdfunding is when individuals invest in shares sold by a company and receive a share of the profits in the form of a dividend or distribution."

Source: Rivkin