Learning Objectives:

  • Define crowdfunding and its different forms.

  • Explain token issuance models (ICO, STO, IEO, IDO).

  • Understand how FinTech startups are financed.

6.1 Crowdfunding

The University of Warsaw course includes “crowdfunding and token issuance (ICO, STO, IEO, IDO)” . Crowdfunding platforms allow individuals or businesses to raise capital from a large number of people, typically via online platforms. The Warwick University course covers “P2P Lending, Crowdfunding” as part of platformization . Key models of crowdfunding include [citation:1,11]:

  • Reward-based: Backers receive non-financial rewards (e.g., early access to a product).

  • Equity-based: Backers receive shares in the company.

  • Debt-based (Peer-to-Peer lending): Backers lend money and receive interest payments.

6.2 Token Issuance

Token issuance models are methods for companies to raise funds by issuing digital tokens [citation:1,7]. These models are a key mechanism for crowdfunding in the blockchain ecosystem [citation:1,7]. Key models include:

  • ICO (Initial Coin Offering): A form of crowdfunding using cryptocurrencies, where tokens are sold to investors .

  • STO (Security Token Offering): A regulated token offering where tokens represent ownership in an underlying asset .

  • IEO (Initial Exchange Offering): A token offering conducted on a cryptocurrency exchange platform .

  • IDO (Initial DEX Offering): A token offering conducted on a decentralised exchange (DEX).

6.3 Financial Technology Business Models

A key part of understanding FinTech is understanding how these companies themselves are financed. The University of South Wales module covers “venture capital structures” and “UK start-up ecosystems” as part of its FinTech business strategy module . FinTechs often rely on venture capital funding to fuel growth, requiring a clear understanding of business models and value propositions.

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