What are the different forms of participatory financing?

June 4, 2025

Discover the three main types of participatory financing—crowdfunding, crowdlending, and crowdequity—and learn how LEND LB’s crowdlending model funds impactful renewable energy projects in Lebanon.

Participatory financing—also known as crowdfunding or crowd-based financing—allows individuals or organizations to raise funds from a large group of people, often via an online platform. Think of it like a collective “money pot” for birthday gifts, but on a much larger scale: many contributors each give small amounts to support a common goal, whether that’s launching a business, funding a social project, or financing a renewable energy installation.

There are three main types of participatory financing, each with its own return structure and risk profile:

Type	Description
Crowdfunding	Individuals donate or contribute funds to support a project or business. There is no expectation of repayment, although backers may receive a non‑monetary reward (e.g., a thank‑you gift or early product access).
Crowdlending	Individuals lend money to a project or business, which agrees to repay the loan with interest over time. This approach combines impact investing with a fixed‑income structure.
Crowdequity	Individuals invest money in exchange for shares in the company, becoming partial owners. Returns depend on the company’s growth, profitability, and potential exit events.

LEND LB and Crowdlending

LEND LB operates on a crowdlending model. When you invest through our platform, you are lending money to a renewable energy project in Lebanon. In return, the project developer repays your principal with interest—typically on an annual schedule—once the installation is operational.

Why Participatory Financing Matters

Democratizes Access to Capital: Small contributions from many individuals can fund projects that might otherwise struggle to secure traditional financing.
Engages Communities: Participants become partners in a project’s success, fostering a sense of ownership and shared mission.
Diversifies Risk: By pooling resources, individual contributors spread their exposure across multiple projects rather than shouldering risk alone.
Drives Innovation: Entrepreneurs and social enterprises gain a new avenue to test ideas, scale quickly, and validate market demand.

Ready to Get Involved?

Participatory finance opens up new ways of supporting meaningful projects - and getting a return while doing it. At LEND LB, we connect investors with renewable energy initiatives in Lebanon. Join us to drive change, generate returns and help build a more sustainable future for Lebanon.