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Different ways to raise funds … the crowd and P2P

Crowd funding, equity crowd funding and P2P lending – What’s the difference?

 Both crowdfunding and equity crowdfunding are different ways to raise money from a group of people for a specific task e.g. to fund a new product, grow a business or finance an endeavour.

Individuals who donate to crowd funding campaigns typically receive a reward, goods or some other form of acknowledgement but they don’t have any shares or equity in the project or venture.

Equity crowd funding is a structured way for a business to raise capital from a large group of people.  Contributors receive equity and have an ownership stake in the business with the potential for a financial return.  Want to know more?

Peer to peer (P2P) lending is also via an online platform and matches private investors with people seeking loans.  It is typically a managed fund and fees are charged to both parties.  The borrower repays the loan with interest, at an agreed rate, and the investor typically gets a higher rate of return than banks etc.  Find out more. 

Need help with grants or other funding raising options?  Contact INNOVIC on (03) 8060 3504.

What does INNOVIC do?  We are a non for profit organisation.  We help get viable new ideas for products, services and technologies to market.  Our commercialisation services are independent, practical, affordable and available nation-wide.  We can help with idea evaluation, IP, prototyping, design, grants, licensing, manufacturing and more.

Have a query?  Email us at



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