Crowdfunding is a method that raises funds from people or the public for projects. The small amounts of money are raised by many people for larger projects. These types of funding platforms are common on the Internet.
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Nowadays, small farms and larger farms are struggling to find an investment for their farms. Crowdfunding has become a solution for farmers.
The commonly used crowdfunding structures are the following ;
● Equity.
● Debt.
● Coin.
● Reward.
● Donation: Donations are made by the investor but the investor does not receive anything in return for his investment
There are some crowdfunding platforms for agriculture online; they are AgFunder, Croppital, Symbid, and Harvest Returns.
1. AgFunder
AgFunder started in 2013 in Silicon Valley. It has more than 85000 registered members and subscribers. It has portfolio companies where people can make their investments.
2. Croppital
Croppital provides a platform to small farmers and larger-scale farms. You can invest for farmers in the platform.
Web: https://www.cropital.com/
3. Harvest Returns
This platform allows farmers to raise funds/equity from investors. It seems that it is a good method for farmers rather than getting a loan from a bank with high interest rates.
Web: https://www.harvestreturns.com/
4. InvestmentFarm
Crowdfunding capital also can fill the gap between debt financing and equity investments.
Limited access to equity capital has created more opportunities to take risks and invest in night risk innovations.
Consumers are concerned about where the food comes from how is grown and the quality. Crowdfunding enables consumers and investors to engage in the early stage of the food production cycle. The returns can be paid not only by capital but also as a portion of food production on the farm. This helps to convert consumers, farmers, and food production firms into a single chain.
( Last Updated: 27th August 2023)
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