Participatory Financing

Participatory financing is a method where a group of investors collectively fund a project or business, sharing both the risks and rewards. Instead of traditional loans or sales, participants contribute capital upfront, and in return, they receive ownership rights, revenue shares, or other benefits proportional to their investment. This approach fosters collaboration and democratizes investment opportunities, often used in social, cultural, or community initiatives. It aligns the interests of investors and project organizers, encouraging mutual support and shared responsibility for success.