Business Pitch Dictionary by pitch.dog
Funding instruments & exemptions · Core

Reward crowdfunding

Also called: rewards-based crowdfunding

ELI5

Supporters pay early and receive a reward rather than shares.

Used in conversation

“Reward crowdfunding can test demand but creates fulfilment obligations.”

Definition

Raising money from supporters in exchange for products, experiences or non-financial rewards.

Here “Reward crowdfunding” means: Raising money from supporters in exchange for products, experiences or non-financial rewards.

Pitch context

You will see “Reward crowdfunding” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches funding instruments & exemptions.

Why it matters: In funding instruments & exemptions, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.