As the name suggests, crowdfunding is the notion of having the public fund your business ventures. Almost like you're pitching to the masses.
A fast way to raise funds without upfront fees or collaterals.
If you were previously shut down by VCs or angel investors, this may be a more unconventional route that has proven itself successfully. You may find your idea well received by the masses.
Serves as an alternative financing option if traditional funding hasn't worked out for your business.
Crowdfunding raises capital from a large number of people — often online — instead of a single bank or investor. It is less a single product than a family of models, each with very different obligations and suited to different goals. For some businesses it is a way to fund a launch and build an audience at the same time; for others it is an alternative when traditional lending has not worked out.
Donation-based crowdfunding asks supporters to give to a cause with nothing expected in return. Reward-based crowdfunding offers backers the product itself or a perk — effectively pre-selling what you are building. Lending-based, or peer-to-peer, crowdfunding is debt: individuals lend you money to be repaid with interest. Equity-based crowdfunding sells shares, giving investors a stake in the business. The right model depends on whether you want to take on debt, give away equity, pre-sell a product, or simply rally a community.
The models are not treated the same under the law. Securities-based and lending-based crowdfunding involve investment and are regulated by the Monetary Authority of Singapore, and the platforms that run them must be licensed. Reward and donation crowdfunding are lighter-touch. That distinction matters, because raising money by offering shares or debt carries disclosure obligations that pre-selling a product does not.
Crowdfunding rewards a compelling story and a product people can rally behind, and it takes real marketing effort — a campaign rarely funds itself. It can also validate demand before you commit to production. But it is public, success is not guaranteed, and the equity and lending routes come with ongoing responsibilities to the people who backed you.
Because crowdfunding sits alongside more conventional financing rather than replacing it, Fundwise can help you weigh it honestly against a loan or facility and point you toward the right channels if it fits. Let's talk through your options.
Guiding you at every step — and back again for your next financing need. It's an ongoing cycle, not a one-off transaction.
Crowdfunding raises money from many individuals, often online, instead of a single lender or investor. It comes in donation, reward, lending (debt) and equity forms, each with different obligations. Fundwise helps you understand which route and platforms suit your venture; we are not a platform or lender ourselves.
Donation-based (supporters give to a cause), reward-based (backers get the product or a perk), lending-based or peer-to-peer (you repay with interest), and equity-based (investors get shares). The right one depends on your business stage and whether you want debt, equity or pre-sales.
Securities-based and lending-based crowdfunding are regulated by MAS, and platforms must be licensed. Reward and donation crowdfunding are lighter-touch. We help you understand the implications before you commit to a route.
It suits businesses with a compelling story or product that can mobilise a community, or those who have found traditional funding hard to secure. It requires marketing effort and, for equity or lending models, proper disclosures.
No. Fundwise is an independent loan advisory and brokerage and does not operate a crowdfunding platform or provide funds. We help you weigh crowdfunding against other financing options and point you to the right channels.
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