Crowdfunding finances a project through contributions from a group of people, usually via an online platform. Receiving donations, pre-selling a product, borrowing and issuing equity are four different transactions. Their costs and commitments differ too.
For a Swiss business, a good campaign starts before its page goes live: choose the model, calculate the net amount needed, prepare a community and organise delivery. This guide supports those decisions with a worked budget and launch method.
At a glance
- Donations, pre-sales, loans and equity create different obligations: choose the model before the platform.
- Gross proceeds must cover fees, rewards and the project’s actual funding need.
- Prepare the community, cash plan and delivery before making the campaign public.
The four crowdfunding models
The word crowdfunding describes how money is raised, not its legal nature. That depends on what is promised to contributors and how the transaction is documented.
| Model | What the contributor receives | Project owner’s main commitment |
|---|---|---|
| Donations, or crowddonating | No agreed economic consideration | Use the funds consistently with the commitments made |
| Rewards, or crowdsupporting | A product, service, access or reward | Provide what was promised under the campaign terms |
| Loans, or crowdlending | A debt claim, usually bearing interest | Repay under the contract and bear financing costs |
| Equity, or crowdinvesting | Specified securities or economic rights | Respect the rights granted and investment arrangements |
A pre-sale is not a donation
A business offering a future backpack for CHF 150 is economically arranging a sale or reward transaction, even if the page calls it “support”. Exact obligations depend on the agreement. Production risk does not automatically remove commitments to buyers.
Conversely, a donation without consideration does not automatically entitle the contributor to a product, repayment or profit share. Make the distinction clear. A symbolic thank-you and a marketable service do not necessarily receive the same treatment.
Crowdfunding does not always remove intermediaries
The platform, payment provider and sometimes an entity grouping investors participate in the transaction. Check who collects and temporarily holds the money and who contracts with contributors. This affects the procedure if the project fails, refunds are needed or disputes arise.
For equity funding, also read our guide to finding investors in Switzerland. Crowdfunding does not remove questions of valuation, dilution or governance.
Is your project suited to crowdfunding?
Crowdfunding works better when the project is easy to explain and appeals to an identifiable audience. A local community, existing customers or people sharing a specific interest provide a starting point. A platform does not automatically create that audience.
Ask five questions before choosing this route:
- Who has a concrete reason to contribute now?
- What result can we present, demonstrate or test?
- Which audience members can we contact with the necessary permissions?
- How many contributions are needed to finance the project?
- Can we deliver the promise if the campaign succeeds?
A specialised B2B business may secure a few pilot orders faster than it can organise a public campaign. An urgent cash need without a new offer or community is also a poor starting point: preparation and payout may take longer than the time available.
What the campaign can actually validate
Paid pre-orders demonstrate demand for a particular offer at a particular price. Alone, they do not prove repeat purchasing at the normal price, profitable production or compliance with every technical requirement.
Separate customers interested in the product from friends supporting the founders. Both help funding but provide different market signals. Measure sales beyond the founders’ immediate circle and the reasons for buying.
Choose the platform and understand its terms
Start with eligibility. Some platforms accept commercial reward projects; others focus on public benefit, culture, sport or a region. Lending and investment platforms use different criteria again.
For example, the terms of heroslocaux.ch, Raiffeisen’s platform, provide for public-benefit projects and exclude purely commercial purposes. Being local therefore does not make every business eligible. This illustrates why terms should be read before preparing an application.
| What to compare | Information needed before launch |
|---|---|
| Eligibility | Accepted models, countries, project owners and categories |
| Fundraising | All-or-nothing or flexible funding, minimum threshold and duration |
| Total cost | Commission, payment fees, taxes on fees and any paid services |
| Payout | Timing, preliminary checks, holdbacks and failed-payment treatment |
| Contributor relationship | Access to necessary information, messaging and export options |
| Failure or dispute | Cancellation, refunds, challenges and responsibilities |
| Delivery | Restrictions on rewards, shipping and project changes |
“No commission” does not necessarily mean no transaction fees. Compare net proceeds using likely payment methods. For loans, compare total borrowing cost; for equity, examine rights and administration fees too.
All-or-nothing or flexible funding?
Under an all-or-nothing model, the platform’s terms make success and payout conditional on reaching a threshold. Flexible funding may let the owner receive funds below target, subject to the agreed conditions.
Choose according to the project’s economics. If an essential machine costs CHF 25,000 and no other financing exists, raising CHF 8,000 will not fulfil the promise. Flexible funding better suits a genuinely divisible project whose scope can change without misleading contributors.
Calculate gross funding needed, not just the project budget
The public counter shows gross pledges. It does not show fees, rewards to fulfil or cash left for development. Calculate these before choosing the target.
Example of a pre-order campaign
A business wants to fund a launch and offers a CHF 150 reward. Full variable cost per contribution is estimated at CHF 60, including manufacturing, packaging and planned shipping. For the simulation, proportional fees are assumed to be 8% of proceeds.
Fixed preparation and launch costs are CHF 12,000, with a CHF 6,000 reserve for cost variances and starting operations. The example assumes the business is not VAT-registered and costs include non-recoverable VAT. The fee percentage is an assumption, not a platform tariff.
| Calculation per contribution | Amount |
|---|---|
| Contribution received | CHF 150 |
| Variable reward cost | −CHF 60 |
| Assumed fees: 8% × CHF 150 | −CHF 12 |
| Available for fixed costs and the reserve | CHF 78 |
The requirement is therefore 18,000 / 78 = 230.77, rounded up to at least 231 contributions. Gross proceeds must therefore reach CHF 34,650.
| Budget at 231 contributions | Amount |
|---|---|
| Gross proceeds | CHF 34,650 |
| Proportional fees | −CHF 2,772 |
| Manufacturing, packaging and shipping | −CHF 13,860 |
| Fixed costs | −CHF 12,000 |
| Balance before any unbudgeted items | CHF 6,018 |
A CHF 18,000 target would have been insufficient: it would confuse the amount needed after rewards with gross funding. This is common when targets are based on a supplier invoice without costing the sales needed to finance it.
Test volumes and unexpected costs
If variable cost rises from CHF 60 to CHF 70, the available contribution falls to CHF 68. The requirement becomes 18,000 / 68, rounded up to 265 contributions, or CHF 39,750 in proceeds. A small cost difference materially changes the viable threshold.
With several rewards, calculate contribution per tier and a realistic sales mix. Do not assume everyone chooses the most profitable tier. Add fixed payment fees, international shipping, returns and acquisition costs where relevant.
Finally, check whether expected growth creates a VAT registration obligation. Do not retain the simplified example’s treatment if the actual tax position changes.
Design rewards you can deliver
A good reward is attractive, understandable and financially controlled. Contributors should know what they receive, the quantity, estimated delivery and any extra charges.
Prepare an internal sheet for every tier: price, costs, handling time, maximum quantity, supplier dependence and shipping details required. A personalised meeting may cost little in purchases but much in staff time. A hundred such rewards can disrupt weeks of work.
Limit colours, sizes and customisation where they make minimum orders difficult. Attractive variety can create leftover inventory and fulfilment errors. The number of product variants matters alongside contributor numbers.
Plan stretch goals
An additional target should finance an addition whose costs have been recalculated. Offering a free improvement to all backers can consume much of the extra funding.
Suppose 300 people have already ordered. An improvement costing CHF 10 per product immediately adds CHF 3,000 of expenses before new orders. Check that additional proceeds cover this cost, fees and further commitments.
Prepare the launch with an identifiable community
Start the timetable before publication. Preparation should gather feedback, clarify misunderstandings and identify people ready to support or share the project.
| Indicative period | Work required | Expected result |
|---|---|---|
| Six to four weeks before | Prototype, quotations, budget and platform choice | Deliverable offer and viable threshold |
| Four to two weeks before | Customer tests, content and permitted contact collection | Clear message and initial supporters identified |
| Two weeks before | Page, video or demonstration, FAQs and logistics | Campaign ready and reviewed |
| During the campaign | Communication, responses, contribution and spending monitoring | Decisions based on results |
| After closing | Reconcile funds, orders, progress and delivery | Promises fulfilled and accounts reconciled |
This is a working method, not a timetable imposed by platforms. Regulated or industrial products may require much longer preparation.
Your page should show the problem, solution, team, actual progress, budget and timetable. Clearly distinguish the prototype from the final product. A polished video cannot replace an identified supplier or production quotation.
Manage the campaign without spending the proceeds twice
Track contributions, average order value, selected tiers, secured payments and supporter sources. Connect these with communication spending. A campaign can hit its target and still lose money if acquisition cost exceeds the available contribution.
In the CHF 150 example, CHF 78 remains after reward costs and fees, before fixed expenses. Spending CHF 80 in advertising to obtain each contribution makes that channel loss-making before financing the launch. A rising counter alone does not justify spending.
Do not treat every displayed pledge as immediately available cash. Payment timing, platform checks, failed payments and possible refunds belong in your cash-flow plan.
If results are weak, identify the cause: insufficient audience, unclear offer, price, lack of evidence or timing. Adding a complex reward or cutting prices heavily may worsen the project’s economics. Address the identified problem first.
Contracts, tax and regulation: classify each flow
Your relationship with contributors
Explain the project owner’s identity, success conditions, promised deliverables, delivery arrangements and consequences of failure. Platform terms and your commitments must be consistent. Prepare suitable general terms and conditions for sales or services.
A public campaign also reveals information to everyone. A non-disclosure agreement with a partner does not protect details you subsequently publish. Resolve intellectual property strategy before revealing an innovation whose protection depends on novelty.
VAT and accounting
Treatment follows the substance of the transaction. A genuine gift without consideration differs from a pre-sale. A payment entitling someone to a product or service may be consideration or an advance payment subject to applicable VAT rules. Calling a button “donate” does not settle the issue.
Likewise, a loan received is not revenue, and an equity contribution is not a sale. Record commercial rewards according to their nature and progress; do not simply treat the platform’s net transfer as total sales. Gross proceeds, fees, refunds and money received must be reconcilable.
A donation is not automatically tax-deductible for the contributor. That depends, among other things, on the recipient and applicable tax conditions. Do not promise tax relief simply because funding comes from a crowd.
Loans, equity and FINMA’s role
There is no general “crowdfunding” regulatory exemption. Obligations depend on matters such as receipt of funds, intermediation and the instruments offered. A securities offer may also create specific documentation duties, subject to relevant conditions and exemptions.
Before raising loans or investments, establish with the platform who performs each function and on what legal basis. A campaign appearing online does not mean FINMA guarantees the business, return or repayment. Use FINMA’s official FinTech information to assess the arrangement.
After fundraising: finance, deliver and report
A successful campaign turns a public promise into operational work. Reconcile payments, confirm necessary contributor details and reserve the money needed for rewards before funding other expenditure.
Track production with owners, deadlines and checkpoints. If delays arise, explain what changes, what remains and when the next update will come. Regular communication does not replace delivery, but avoids leaving contributors to discover a prolonged silence.
If a campaign misses its threshold, apply the announced and platform conditions. Then analyse who contributed, which messages worked and which assumption was wrong. Preparation costs still need financing even if contributions are refunded or never charged.
Respect the purposes for which data was collected. An address obtained to ship a product does not automatically authorise every future marketing use. Separate order updates from marketing subscriptions.
A successful campaign finances a promise you can keep
The right target is not the most impressive figure on the page. It covers real costs, fees and commitments and can be supported by the community. Choose the funding type first, then the platform and commercial process.
Before publication, you should be able to show three simple documents: the net budget, cash timetable and delivery plan. If one is missing, the project is not yet ready to receive money from the public.
Frequently asked questions
Can crowdfunding finance a commercial business?
Yes, depending on the model and platform conditions. Pre-sales, loans and equity meet different needs. Some platforms are reserved for public-benefit or other specified projects.
Must contributors be repaid?
It depends on the contract. A loan provides for repayment. Equity carries a risk of loss and is not a debt repayable on a fixed date. For reward campaigns or unsuccessful fundraising, obligations follow from the commitments and applicable conditions.
How much does a campaign cost?
Add platform and payment fees, content, advertising, rewards, logistics and team time. Then calculate what remains for the project. Commission is only one part of total cost.
Can I launch without a community?
You can prepare a project without an existing audience, but must then build and assess that audience before relying on contributions. Publication alone is not an acquisition plan.
Is crowdfunding subject to VAT?
There is no single treatment. It depends on the payment’s nature, rewards and the project owner’s VAT status. Pre-sales differ from loans or genuine donations without consideration.
What if the campaign raises much more than planned?
Recalculate production capacity, lead times, purchases and cash needs. Exceeding the target can require more resources and increase obligations. Add promises only after costing them.
Sources and references
- SME portal — Different crowdfunding models (French)
- FINMA — Questions about FinTech and crypto offers (French)
- Héros locaux — Terms and project eligibility (French)
- Federal Tax Administration — VAT
- Swiss Federal Institute of Intellectual Property — Collaboration and confidentiality (French)
Campaign figures are fictional and explain the calculation method; they are neither platform tariffs nor forecasts of success.
Romain Prieur is a Swiss-qualified chartered accountant and founder of Entreprendre.ch. With more than ten years of experience in audit and supporting Swiss businesses, he advises entrepreneurs on company formation, accounting and taxation.
