Crowdfunding model includes three actors or key things. These are Founder or Initiator, Crowd Funders, Crowdfunding platform.
Donation Crowdfunding: Donation or charity crowdfunding is for supporting a cause. Investors do not expect any return from it. They are supporting the cause for which the fund is raising. Fund raising for expense of medical treatment of critical illness or any other social causes are examples donation crowdfunding or charity crowdfunding.
Debt Crowdfunding: Here project founder or project initiator are bypassing traditional banking services and raises funds through small lenders. Sometime it is called as “peer to peer” or P2P lending.
Reward Crowdfunding: Here funds raised for promoting motion pictures, any scientific research, software development project that will help to make our lives better.