4 Types of Crowdfunding: A Complete Guide from Reward-Based to Equity-Based
4 Types of Crowdfunding
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- Crowdfunding is classified into four types: compensation type, donation type, loan type, and securities type.
- In Korea, Wadiz is leading the compensation market.
- In the reward-type crowdfunding Wadiz, you can check the market reaction relatively without burdening inventory.
1. Four types of crowdfunding are completely organized
Last Modified: 2026-05-14
Crowdfunding is a method of raising funds from the public,
Depending on the type of compensation, it is classified into four types: compensation type, donation type, loan type, and securities type.
In Korea, Wadiz is leading the compensation market, surpassing 90,000 cumulative projects and 1.5 trillion won in transactions.
4 types of crowdfunding at a glance
| kind | a key feature |
Participant compensation (equity) type
|
Goal
|
| Compensation type | Receiving products and services after pre-ordering | Product or Service (Rewards) | New Product Market Validation and Initial Financing |
| Donation type | Pure donation and social value realization | an emotional reward | social contribution and public interest projects |
| loan type | Lending principal and receiving interest | Principal and Interest | individual and corporate financing |
| Securities type | Investment in shares and bonds by new and unlisted companies | Equity and dividends | Start-up investment and initial business financing |
1) Reward crowdfunding
The compensation type is a pre-order concept and is a structure in which products and services are received later.
Unlike general e-commerce, the project is completed only when the target amount is achieved, so the biggest feature is that the market reaction can be checked first without any burden of inventory.
3 Key Benefits of Compensation
- Securing initial funding: Before production, you can pay for the initial production with the funding amount.
- Low inventory risk: Production based on real demand can reduce excess inventory risk.
- Market Verification: The supporters' responses can help you to see how competitive your ideas are.
Wadiz is the representative platform of domestic reward-type crowdfunding,
New products in various fields such as IT, home appliances, fashion, beauty, and food are becoming the first channels to be released on the market.
With more than 90,000 cumulative projects and 1.5 trillion won in cumulative transactions, it is the starting point for many manufacturers to verify the market and grow their brands for the first time.
2) Donated crowdfunding
Donation is a method of funding without financial or physical compensation for social contributions or public interest projects.
Participants participate for the purpose of achieving emotional satisfaction and social honor.
3) Loan-type crowdfunding
A loan type is a method of lending funds to an individual or a company and receiving promised interest. Representatively, we have P2P finance.
Investors can expect higher returns than bank deposits, and individuals or companies in need of funds can raise funds at a relatively low threshold.
4) Securities-type crowdfunding
The securities type is a method of receiving shares or dividends by investing in stocks and bonds of new or unlisted companies.
It is mainly used as a means of financing businesses for early companies, and investors can expect capital gain and dividend income from corporate growth.
From a company's point of view, it has the advantage of being able to secure initial funds from a large number of investors without venture capital (VC) or bank loans.
2. Frequently Asked Questions (FAQ)
Q. What kind of crowdfunding does Wadiz do?
A. Wadiz is Korea's representative reward crowdfunding platform.
If the maker reveals the product or service first, it will be pre-ordered with supporters participating in funding.
New products in various fields such as IT, home appliances, fashion, beauty, and food are being released on the market for the first time through Wadiz.
Q. What is different about Wadiz funding from regular commerce?
A. The biggest difference is the 'pre-order and manufacture' structure.
It is not a method of mass production first like regular commerce, but it is possible to produce after checking the actual order demand, so the inventory burden is low.
In addition, marketability can be verified in advance through customer reactions, comments, and notification application data during the funding process.
Waidz, the representative platform of crowdfunding
Start funding today on Wadiz, the representative platform for rewarded crowdfunding in Korea!
If it's your first funding, we'll even give you a 30% discount on the commission.
Get a discount on your first funding fee
