Crowdfunding – a model for targeted market expansion and investment capital growth
Crowdfunding has become a model for acquiring investment capital for innovative farmers and food producers in Denmark – yet its use is still limited due to lack of knowledge.
One model of crowdfunding developed by the co-operative retail company COOP Denmark was presented in May 2018 at the REFRAME conference in Denmark. There is a need to finance an increase in production among small innovative food SME's.
With crowdfunding, an increase in consumer loyalty is developed among the “investor crowd” by buying-in to a product or to the production values of a producer.
The COOP crowdfunding program has two versions: the 'Reward version' and the 'Loan version'