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New Zealand beach crowdfunding bid accepted
A crowdfunding campaign to buy a New Zealand beach has had its bid accepted after reaching its funding target.
Nearly 40,000 people donated almost NZ$2.3m (£1m, $1.5m) to buy the Awaroa beach in the Abel Tasman National Park, on the north coast of South Island, which went on sale last year. Campaigners said the government and another major donor also contributed.
The project was launched after a group of friends vowed to secure the beach for public use.
The current owner - businessman Michael Spackman - agreed to sell them the beach following four days of negotiations after the crowdfunding campaign reached its target in just over three weeks, local website Stuff reported.
Crowdfunding is a way of raising finance by asking a large number of people each for a small amount of money. Until recently, financing a business, project or venture involved asking a few people for large sums of money. Crowdfunding switches this idea around, using the internet to talk to thousands – if not millions – of potential funders. There are three different types of crowdfunding: donation, debt and equity.
We have practical experience of working with debt crowd funding or peer-to-peer (p2p) lending as it is also called. Investors receive their money back with interest and it allows for the lending of money while bypassing traditional banks. Returns are financial, but investors also have the benefit of having contributed to the success of an idea they believe in.