Translation

Reward-based Crowdfunding = reward-based crowdfunding
Also known as Pre-order Crowdfunding = pre-order crowdfunding.

Simple definition

It is a funding model in which a project owner raises money from a large number of people to fund a product or idea. In return, backers receive a non-financial reward, such as the product itself, an exclusive version, or access to it before it is released on the market.

How does it work?

The project owner presents the idea on a crowdfunding platform and sets the required amount and the corresponding rewards for different support levels. People contribute an amount that suits them, then receive the agreed-upon reward when the project is completed.

A real-world example

The company Pebble launched a campaign on Kickstarter to fund production of its smartwatch, Pebble Time. The goal was to raise $500,000, but the campaign raised more than $20 million from over 78,000 backers. Backers received the watch and various benefits depending on their support level.

What does this mean for you?

It means you can support a new idea or product before it reaches the market and receive a product or exclusive benefit in return, without necessarily owning a stake in the company.

Frequently asked question: What happens if the project does not succeed after raising the funds?

It depends on the terms of the crowdfunding platform and the campaign. The money may be returned to backers if the funding goal is not met, while in some cases the project continues using the funds while remaining committed to providing the rewards. Therefore, it is important to read the campaign terms before participating, especially those concerning delivery and refunds.