The process of crowdfunding : Before the process of crowdfunding came into existence, people were allowed to invest through real estate investment trusts or investment companies. They could invest only based on their individual creditworthiness and finances. They could not enter into expensive real estate investments. But with the emergence of real estate crowdfunding, they could directly invest in the business. They could directly seek investments from wealthy investors and gain access to more business ventures. It is something like a shared business. Different Modus Operandi for crowdfunding : There are various crowdfunding processes Reward-based crowdfunding: This is crowdfunding wherein people invest in exchange for rewards. The reward does not manifest in the form of cash and instead is given in the form of things. Donation-based: investors make donations and this is for a charitable cause. Nothing is given to them in return. Debt-based: This is something like a loan. Investors give loans to those who solicit investments from them. It is similar to a mortgage where a certain interest rate is offered. Stake based In this type of crowdfunding, investors will have a share in the profits made through the investments. Their share depends on their equity, i.e. the worth of the money that they have invested.