Crowdfunding lexicon

Learning and understanding the vocabulary and expressions of crowdfunding. This is the object and focus of this crowdfunding lexicon - always respecting our hubokee leitmotif of a "Crowdfunding made easy".

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Start by choosing the first letter of expression you would like to look up or simply scroll through the listing. Enjoy your reading.

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    consent

    A consent is any freely given, specific, informed, and unambiguous indication of your wishes by which you, by a statement or by a clear affirmative action, signify agreement to the processing of personal data relating to you.

    crowd donation

    Crowd donation is a type of crowdfunding representing the financial support of crowdfunding projects through donations.

    Two options of crowd donation are existing:

    • donation-based crowdfunding, where contributors make a donation to companies, organisation and projects with no reward.
    • reward-based crowdfunding, where contributors make donations in return for a reward, service or product

    + info: crowdfunding/collaborative finance
    keywords: crowdfunding; donation; donation-based ; reward-based; contributor

    crowdequity

    Crowdequity is a type of crowdfunding allowing persons, institutions or companies to invest in companies (in general SMEs or start-ups) in exchange of shares.

    The investors are becoming shareholders who are holding parts in form of shares of the company they are investing in.

    Crowdequity is the consolidation of the word "crowd", the general public, consumers, and the word "equity".

    + info: crowdfunding/collaborative finance
    keywords: crowdfunding; crowdequity; shares

    crowdfunding

    Crowdfunding, also called collaborative finance, describes the participation of a large number of people (contributors) to a crowdfunding project with their investment, loan or donation.

    A contributor can participate in crowdfunding through different forms of financial engagement such as investment (in equity, also crowdequity, royalties or securities), lending, also called crowdlending or donation, including rewards-based donation.

    Crowdfunding is the consolidation of the word "crowd", the general public, consumers, and the word "funding", the financial support through consumers.

    + info: crowdfunding/collaborative finance
    keywords: crowdfunding; contributor; crowdequity; royalties; securities; crowdlending; donation

    crowdlending

    Crowdlending is a type of crowdfunding that allows contributors to finance a crowdfunding project by a person or company through a loan. The contributor is giving a loan to the project owner and receives the repayment of lent capital with or without a interest rate over time.

    Two options of crowdlending are existing:

    • P2P (peer-to-peer) lending. It is a loan given by a private person to another person.
    • P2B (peer-to-business) lending. The loan is given by private persons to a company.

    +info: crowdfunding/collaborative finance
    keywords: crowdfunding; crowdlending; P2P lending; peer-to-peer lending; P2B lending; peer-to-business lending; loan; contributor, project owner; interest rate

    crowd royalties

    Crowd royalties (also called royalty-based crowdfunding or royalty crowdfunding) is a type of crowdfunding that allows contributors to invest in companies (in general SMEs and start-ups) in return of a portion of a future sale (royalty) by the company in terms of gross revenues (not profits) as soon as the sale occurs.

    + info: crowdfunding/collaborative finance
    keywords: royalty crowdfunding; royalty-based; crowd royalties; crowdfunding; contibutor; 

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    data breach

    A data breach is a breach of security leading to accidental or unlawful destruction, loss, alteratin, unauthorized disclosure of, or access to personal data transmitted, stored, or owtherwise processed.

    data processing

    Data processing is any operation of set of operations that are performed on personal data, whether or not by automated means, such as collection, recording, organization, structuring, storage, adaptation, alteration, retrieval, consultation, use, disclosure (by transmission, dissemination, or otherwise making available), alignment, combination, restriction, erasure, or destruction.

    data protection authority (DPA)

    A Data Protection Authority (DPA) is a national and independent administrative regulatory body whose mission is to ensure that data privacy law principles are applied to any processing of personal data, within its territory. Each authority has powers of investigation, intervention, sanction, and engagement in legal proceedings.

    data protection impact assessment (DPIA)

    The Data Protection Impact Assessment (DPIA) enables to work out the risks that are inherent in data processing activities before those activities commence, in order to address and mitigate the risks before the processing begins. It is a systematic process that identifies and evaluates, from the perspective of all stakeholders (consumers, business partners, and authorities), the potential effects on a privacy of information and that includes a search for ways to avoid or mitigate negative impacts on privacy.

    data protection officer (DPO)

    The Data Protection Officer (DPO) is a person who is formally tasked with ensuring that an organization is aware of and complies with its data protection responsibilities.

    donation-based crowdfunding

    Donation-based crowdfunding is a type of crowdfunding representing the financial support of crowdfunding projects through donations.

    Contributors (donors) expect and receive no reward for their donation.

    + info: crowdfunding/collaborative finance
    keywords: crowdfunding; donation; donation-based; contributor

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    equity crowdfunding

    Equity crowdfunding, also named crowdequity is a type of crowdfunding allowing persons, institutions or companies to invest in companies (in general SMEs or start-ups) in exchange of shares.

    The investors are becoming shareholders who are holding parts in form of shares of the company they are investing in.

    Crowdequity is the consolidation of the word "crowd", the general public, consumers, and the word "equity".

    + info: crowdfunding/collaborative finance
    keywords: crowdfunding; crowdequity; shares

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    lending

    Lending money in crowdfunding describes crowdlending, a type of crowdfunding that allows contributors to finance a crowdfunding project by a person or company through lending money. The contributor is giving a loan to the project owner and receives the repayment of lent capital with or without a interest rate over time.

    Two options of crowdlending are existing:

    • P2P (peer-to-peer) lending. It is a loan given by a private person to another person.
    • P2B (peer-to-business) lending. The loan is given by private persons to a company.

    +info: crowdfunding/collaborative finance
    keywords: crowdfunding; crowdlending; P2P lending; peer-to-peer lending; P2B lending; peer-to-business lending; loan; contributor, project owner; interest rate

    loan

    A loan in crowdfunding is given to the project owner. It is described as crowdlending, a type of crowdfunding that allows contributors to finance a crowdfunding project by a person or company throug a loan. The contributor is giving a loan to the project owner and receives the repayment of lent capital with or without a interest rate over time.

    Two options of crowdlending are existing:

    • P2P (peer-to-peer) lending. It is a loan given by a private person to another person.
    • P2B (peer-to-business) lending. The loan is given by private persons to a company.

    +info: crowdfunding/collaborative finance
    keywords: crowdfunding; crowdlending; P2P lending; peer-to-peer lending; P2B lending; peer-to-business lending; loan; contributor, project owner; interest rate

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    opt in

    The term "Opt In" expresses consent by a consumer to the processing of personal data for a stated purpose (such as for the purpose of sending him or her electronic marketing communications, for example notifications per e-mail).

    opt out

    The term "Opt Out" expresses the consent by a consumer that may be implicit or may be obtained in the form of acceptance of a negative sentence, such as "I do not object to the processing...".

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    P2P lending

    P2P lending, also peer-to-peer lending or crowdlending is a type of crowdfunding that allows contributors to finance a crowdfunding project by a person through a loan.

    The contributor is lending his money to the project owner and receives the repayment of lent capital with or without an interest rate over time.

    +info: crowdfunding/collaborative finance
    keywords: crowdfunding; crowdlending; P2P lending; peer-to-peer lending; loan; contributor, project owner; interest rate

    P2B lending

    P2B lending, also peer-to-business lending or crowdlending is a type of crowdfunding that allows contributors to finance a crowdfunding project by a company through a loan.

    The contributor is lending his money to the project owner  and receives the repayment of lent capital with or without a interest rate over time.

    +info: crowdfunding/collaborative finance
    keywords: crowdfunding; crowdlending; P2B lending; peer-to-business lending; loan; contributor, project owner; interest rate

    peer-to-business lending

    Peer-to-business lending, also P2B lending or crowdlending is a type of crowdfunding that allows contributors to finance a crowdfunding project by a company through a loan.

    The contributor is lending his money to the project owner and receives the repayment of lent capital with or without a interest rate over time.

    +info: crowdfunding/collaborative finance
    keywords: crowdfunding; crowdlending; P2B lending; peer-to-business lending; loan; contributor, project owner; interest rate

    peer-to-peer lending

    Peer-to-peer lending, also P2P lending or crowdlending is a type of crowdfunding that allows contributors to finance a crowdfunding project by a person through a loan.

    The contributor is lending his money to the project owner and receives the repayment of lent capital with or without a interest rate over time.

    +info: crowdfunding/collaborative finance
    keywords: crowdfunding; crowdlending; P2P lending; peer-to-peer lending; loan; contributor, project owner; interest rate

    personal data

    Personal data is any information relating to an identified or identifiable natural person (consumer). An identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier - such as a name, an identification number, location data, - or to one or more factors specific to the economic or social identity of that natural person.

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    reward-based crowdfunding

    Reward-based crowdfunding is a type of crowdfunding representing the financial support of crowdfunding projects through donations.

    Contributors (donors) make donations in return for a reward, service or product.

    + info: crowdfunding/collaborative finance
    keywords: crowdfunding; donation; reward-based; contributor

    royalty crowdfunding

    Royalty crowdfunding (also called royalty-based crowdfunding or crowd royalties) is a type of crowdfunding that allows contributors to invest in companies (in general SMEs and start-ups) in return of a portion of a future sale (royalty) by the company in terms of gross revenues (not profits) as soon as the sale occurs.

    An example of this approach is a mobile application where backers are supporting an app before it's fully developed or launched. They share in the revenue once the company starts generating capital with this app by selling it to the public.

    Read more at: https://www.equitynet.com/crowdfunding-terminology/royalty-crowdfunding

    + info: crowdfunding/collaborative finance
    keywords: royalty crowdfunding; royalty-based; crowd royalties; crowdfunding; contibutor; 

    s
    shares

    Shares are units of ownership interest of a person, the shareholder, in a company which is distributing them. Shares come with voting rights in the company during general meetings, giving shareholders more control over the business and the right of information. Shareholders may benefit through dividends. Shares can be exchanged/traded by mutual agreement (also called OTC - over-the-counter) directly between two parties or on the stock exchange where they are listed.

    The owner of shares is referred to as shareholder and the shareholders together constitute the company.

    keywords: shareholder; dividends; general meeting

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