EU FUNDING OPPORTUNITIES AND PROJECT MANAGEMENT TIPS

The aim of the Pilot Project is to identify, analyse and publicise the best practice in Europe's crowdfunding market in relation to the cultural and creative sectors (CCS), including inter alia architecture, archives, libraries and museums, artistic crafts, audiovisual (including film, television, video games and multimedia), tangible and intangible cultural heritage, design, festivals, music, literature, performing arts, publishing, radio and visual arts.

The project is expected to provide an overview of the different crowdfunding models currently operating in Europe and which can be used to finance projects in the field of the cultural and creative sectors. The purpose of the study on crowdfunding for the CCS - which is the main element of the pilot project - is to collect and analyse data in order to support the European Commission in the implementation of its political objectives regarding access to alternative sources of finance for the SMEs in the CCS and to provide case studies of good practice.

Deadline: 28/08/2015

Crowdfunding is a way of raising money to finance projects and businesses. It enables fundraisers to collect money from a large number of people via online platforms.

Main types of crowdfunding

Peer-to-peer lending

The crowd lends money to a company with the understanding that the money will be repaid with interest. It is very similar to traditional borrowing from a bank, except that you borrow from lots of investors.

Equity crowdfunding

Sale of a stake in a business to a number of investors in return for investment. The idea is similar to how common stock is bought or sold on a stock exchange, or to a venture capital. Rewards-based crowdfunding

Individuals donate to a project or business with expectations of receiving in return a non-financial reward, such as goods or services, at a later stage in exchange of their contribution.

Donation-based crowdfunding

Individuals donate small amounts to meet the larger funding aim of a specific charitable project while receiving no financial or material return.

Profit-sharing / revenue-sharing

Businesses can share future profits or revenues with the crowd in return for funding now.

Debt-securities crowdfunding

Individuals invest in a debt security issued by the company, such as a bond.

Hybrid models

Offer businesses the opportunity to combine elements of more than one crowdfunding type