It also allows investors to purchase a stake in a claim they have funded, which may allow them to get back more than their investment if the case succeeds (the reward is based on the compensation received by the litigant at the end of his or her case, known as a contingent fee in the United States, a success fee in the United Kingdom, or a pactum de quota litis in many civil law systems).The inputs of the individuals in the crowd trigger the crowdfunding process and influence the ultimate value of the offerings or outcomes of the process.The book would be written and published if enough subscribers signaled their readiness to buy the book once it was out.
Books have been crowdfunded for centuries: authors and publishers would advertise book projects in praenumeration or subscription schemes.
The distance between creators and investors on Sellaband was about 3,000 miles when the platform introduced royalty sharing.
The funding for these projects is distributed unevenly, with a few projects accounting for the majority of overall funding.
The creator must not only produce the product for which they are raising capital, but also create equity through the construction of a company.
Equity crowdfunding, unlike donation and rewards-based crowdfunding, involves the offer of securities which include the potential for a return on investment.