GigaStar’s crowdfunding portal (GigaStar Market) is a revenue-sharing crowdfunding model. Revenue sharing or royalty-based crowdfunding is typically used by creators in creative industries, such as music or film, to fund their projects. GigaStar Market is dedicated to bringing YouTube Creators and Investors together as partners through SEC-registered offerings under Regulation Crowdfunding (RegCF).
Common Crowdfunding Types & Examples:
| Equity Crowdfunding | Rewards Crowdfunding | Revenue Sharing Crowdfunding | Donation Crowdfunding | Lending Crowdfunding |
| In equity crowdfunding, investors purchase an ownership interest in the entity, whether it’s shares in a startup corporation or membership interests in a limited liability company (or partnership) owning real estate. Equity interests can be senior or subordinate to the other ownership interests, and are subordinate to the rights of the entity’s creditors. | Rewards-based crowdfunding is the most common type of crowdfunding option available. This type of crowdfunding involves setting varying levels of rewards that correspond to pledge amounts. | Revenue-sharing crowdfunding involves offering investors a percentage of the revenue generated by a project or product. This means that investors receive a portion of the profits generated by the project, but do not have any ownership stake or voting rights in the company. | Donation crowdfunding is exactly what it sounds like - the campaigns amass donations without being required to provide anything of value in return. This type of campaign serves social causes and charities best. | Lending-based crowdfunding allows entrepreneurs to raise funds in the form of loans they will pay back to the lenders over a pre-determined timeline with a set interest rate. |
| e.g. StartEngine | e.g. Kickstarter | e.g. GigaStar | e.g. Patreon | e.g. Kiva |
Investors should read and fully understand offering materials, as there are material differences in the features, terms, and risks of securities types, including equities and revenue-sharing securities. Investment offerings are speculative, illiquid, and involve a high degree of risk, including the risk of loss of your entire investment. Past performance is not a guarantee of future results.