Togetherise specializes in revenue-sharing crowdfunding, a model where businesses raise capital by offering investors a share of their revenues over time. This approach enables businesses to secure funding without giving up ownership or equity, while investors participate in the businesses’ financial performance.
Unlike donation-based or reward-based crowdfunding platforms like Kickstarter or GoFundMe, revenue-sharing crowdfunding focuses on generating financial returns for investors. It also differs from equity crowdfunding, where investors receive direct ownership in the company.
In revenue-sharing crowdfunding, businesses issue Convertible Revenue-Linked Promissory Notes, which outline the terms of repayment. Investors are repaid through a percentage of the business’s revenues until a predetermined total repayment amount is met.
