Crowdfunding is the practice of raising small amounts of money from many backers online. It comes in four main types: donation-based, reward-based, equity, and debt (also called lending or peer-to-peer crowdfunding), each with different platforms, audiences, regulatory rules, and obligations to the people contributing money. The right type for a startup depends entirely on what the company can offer in exchange.
Donation-based crowdfunding (GoFundMe, Fundly, Mightycause): backers contribute money to a person, cause, or project and receive nothing tangible in return. Best for nonprofits, social-impact ventures, and personal causes; rarely the right fit for for-profit startups. Reward-based crowdfunding (Kickstarter, Ind...
Private investors are non-public sources of capital that invest in private companies. They include angel investors, venture capital firms, family offices, corporate venture arms, and high-net-worth individuals, most of whom must qualify as "accredited investors" under SEC rules to participate in startup financings. They are distinct from public market investors (who buy publicly traded stocks) and from institutional debt providers (banks, lenders).
The four main categories of private investors at the startup stage are angel investors (individuals investing personal capital, typically $10,000 to $250,000 per deal), venture capital firms (institutional funds investing pooled limited-partner capital, typically $250,000 to $25...
Indiegogo is a reward and flexible-funding crowdfunding platform launched in January 2008, predating Kickstarter by over a year. It is distinct from Kickstarter by offering both fixed-goal campaigns (all-or-nothing, similar to Kickstarter) and flexible-funding campaigns (where creators keep what they raise even if the goal isn't met), with significantly stronger international reach and a broader category mix that includes social causes and non-product projects Kickstarter rejects. Indiegogo has facilitated billions of dollars in funding across millions of campaigns since launch, though it lags Kickstarter in total funded volume and brand recognition for major product launches.
The structural distinctions from Kickstarter:
Reward-based crowdfunding is the model where backers receive a product, perk, or experience in exchange for their pledge rather than equity. It is distinct from equity crowdfunding (the model used by Wefunder and Republic under Reg CF, where backers receive shares) and donation-based crowdfunding (where backers receive nothing). It is exemplified by Kickstarter and Indiegogo and most commonly used for consumer products, creative projects, tabletop games, books, and other tangible-deliverable categories. The model functions structurally as a pre-order with bonus tiers and community marketing wrapped together.
The mechanic: project creator sets reward tiers at various pledge amounts. A $25 pledge might get the basic ...
A business grant is non-dilutive funding awarded to a company by a government agency, foundation, or corporation that does not have to be repaid. It does not require the recipient to give up equity, and is typically tied to specific eligibility requirements, use-of-funds restrictions, and reporting obligations. It is one of the few funding sources where the founders keep 100 percent of the company.
The three main sources of business grants for startups are federal government programs (SBIR and STTR grants from agencies like the National Science Foundation, NIH, Department of Defense, and Department of Energy, with phased awards typically $50,000 to $250,000 in Phase I and $750,000 to $2 million in Phase II for tech and resear...
Everything about raising capital, from the first SAFE to the IPO. This cluster covers every named stage (pre-seed through Series E+), the investor types (VC, CVC, angels, family offices, crossover funds, strategic vs financial), the fund mechanics that drive investor behavior (LPs, GPs, fund life, carried interest), the crowdfunding regulations and platforms, the round structures (up, down, flat, bridge, extension), and the closing mechanics that make deals real. 97 entries.
This is the most thoroughly covered cluster in the lexicon because fundraising decisions compound for years.
Regulation D (Reg D) is the SEC framework that exempts most private securities offerings from public-registration requirements under the Securities Act of 1933. Codified in Rules 504, 506(b), and 506(c), the regulation covers essentially all venture financing rounds in the US through Rule 506(b) and Rule 506(c), allowing companies to raise unlimited capital from accredited investors without registering the offering with the SEC. It is the regulatory backbone that makes private startup financing possible, and one of the few SEC frameworks every startup founder needs at least passing familiarity with.
The three rules in Regulation D:
Donation based crowdfunding is a fundraising model in which many small contributors give money to a person, cause, or project without expecting return. Contributions are typically processed online through platforms like GoFundMe, Fundly, or Mightycause, with no equity, repayment, or material rewards offered to backers. It is distinct from reward-based crowdfunding (Kickstarter, Indiegogo, where backers receive a product or perk), equity crowdfunding (Republic, Wefunder, where backers receive shares), and debt or lending-based crowdfunding (where backers are repaid with interest).
The model is dominated by charitable, personal-emergency, and community use cases, not startup financing. GoFundMe, the largest donatio...
Republic is an equity crowdfunding platform founded in 2016 by AngelList alumni that operates across multiple SEC frameworks (Regulation Crowdfunding, Regulation A+, Regulation D). Its broad asset-class portfolio includes traditional startups, cryptocurrency token offerings, video games (Game.fi and game-studio funding), real estate, and music-rights deals. It is distinguished from Wefunder and StartEngine by its diversification across asset categories beyond traditional equity startup crowdfunding. Republic has facilitated hundreds of millions of dollars in capital across its various offerings since launch.
The platform's product lines:
Wefunder is the largest equity crowdfunding platform operating under Regulation Crowdfunding (Reg CF) by total raise volume. It has facilitated approximately $700 million in capital across thousands of startup offerings since founding in 2012 (predating the formal Reg CF rollout in 2016), with a portfolio that has included many Y Combinator alumni, B Corp companies, mission-aligned ventures, and consumer brands with passionate customer bases. Wefunder is itself structured as a public benefit corporation, reflecting the platform's emphasis on democratizing startup investment access.
The structural characteristics: Reg CF focus (most offerings are Reg CF; Wefunder also supports Reg A+ for larger raises). Standard offering size typica...