> For the complete documentation index, see [llms.txt](https://jolders.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://jolders.gitbook.io/docs/background/crowdfunding.md).

# Crowdfunding

Over the last decade, crowdfunding has emerged as a powerful tool for enabling collective financial participation in creative, social, and entrepreneurial projects. By leveraging online platforms and network effects, crowdfunding has helped **connect early-stage projects with communities willing to support them**, often in exchange for products, perks, or equity.

#### 🏗️ Four Primary Models of Crowdfunding:

| Type               | Description                                                                        | Example Platforms           |
| ------------------ | ---------------------------------------------------------------------------------- | --------------------------- |
| **Reward-based**   | Participants receive exclusive products or perks in return for contributions.      | Kickstarter, Indiegogo      |
| **Donation-based** | Contributions are made without financial return — typically for charitable causes. | GoFundMe                    |
| **Lending-based**  | Backers lend capital to projects and receive repayments with interest.             | LendingClub                 |
| **Equity-based**   | Participants receive ownership or profit rights in startups they support.          | Seedrs, Republic, Crowdcube |

According to **Statista**, more than **$16.2B** was raised globally via crowdfunding in 2020, with projections estimating the market to surpass **$28.8B by 2025**. In the U.S., **Republic** has facilitated participation in over **250 startups**, and **Seedrs** in the UK has enabled the deployment of over **£293M** into early-stage ventures.

***

#### ⚖️ Key Limitations of Traditional Crowdfunding

While successful, traditional crowdfunding models also carry notable limitations:

* **Limited financial upside** for contributors (especially in reward/donation-based models)
* **Restricted liquidity** — contributions are often locked without any way to exit
* **Fragmented access** — eligibility often varies based on jurisdiction, income, or accreditation
* **Minimal investor governance** — few platforms offer participants voting rights or influence over the project’s development

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### 🔁 Crowdfunding vs. Jolders: A New Model of Participation

While both models leverage distributed participation, **Jolders introduces a next-generation framework** using blockchain infrastructure, tokenized participation, and smart contract-based governance.

| Feature              | Traditional Crowdfunding             | **Jolders**                                   |
| -------------------- | ------------------------------------ | --------------------------------------------- |
| **Ownership Model**  | Perks or non-transferable equity     | On-chain participation via NFTs               |
| **Liquidity**        | None or very limited                 | Optional secondary market access              |
| **Geographic Reach** | Often regional or jurisdiction-bound | Global by default (compliance permitting)     |
| **Investor Rights**  | Minimal influence or control         | Governance rights and access to reports       |
| **Transparency**     | Limited disclosure from projects     | On-chain record of all participation activity |
| **Revenue Sharing**  | Rare                                 | Possible royalty/loyalty revenue sharing      |

***

### 🔍 Why This Matters

Jolders bridges the best of both worlds — **the accessibility of crowdfunding** and **the structural rigor of private market participation**. Through tokenized models, participants can access curated opportunities with flexible entry points, transparent performance tracking, and optional liquidity.

This model offers a stronger alignment between projects and participants while maintaining trust and flexibility through blockchain infrastructure.