Raise funds through crowdfunding

In search of loans, investments or donations for entrepreneurial projects? Numerous online crowdfunding platforms enable Swiss SMEs to obtain financing directly from individuals, bypassing traditional players.

Crowdfunding denotes an alternative method of financing calling on a large number of sponsors. Each sponsor provides only a small part of the total amount necessary to launch a wide variety of projects.

Sponsors are usually mobilized via internet platforms which put entrepreneurs in touch with financial backers who are usually individuals. Unlike other forms of financing, crowdfunding takes place without any intermediaries. For SMEs, this represents a good way of raising funds whilst bypassing traditional sponsors, like banks. 

Increase in sums raised 

In Switzerland, according to the report Crowdfunding Monitoring Schweiz 2016 by the Lucerne University of Applied Sciences and Arts, sums raised in 2015 for 1,342 campaigns totaled CHF 27.3 million. I.e. an increase of 73% compared to the 2014 financial year. Between 2011 and 2015, amounts allocated to projects or businesses increased ninefold. 

No fewer than 90,000 people living in Switzerland donated or lent money via a crowdfunding platform in 2015. The number of these crowdfunding sites has risen significantly in recent years. There were 14 active sites in Switzerland in 2013, twice that amount in 2014 and around forty in April 2016. 

The different types of crowdfunding 

There are four types of crowdfunding. They are differentiated mainly by the nature of the consideration received by contributors. This consideration may be monetary or not. 

Crowddonating 

Contributors donate money without expecting anything in return: 

Crowdsupporting 

Contributors donate money and receive a non-financial consideration in exchange for funds invested, such as the financed product before it is released to the public:

Crowdlending 

Contributors lend money and expect to be paid back and to receive interest in the form of appropriate compensation: 

Crowdinvesting 

This form of crowdfunding is aimed at financing companies. Contributors invest money and in return, receive a share of the business or profits: 


Information

Last modification 15.08.2018

Top of page

https://www.kmu.admin.ch/content/kmu/en/home/concrete-know-how/finances/financing/equity-financing/crowdfunding.html