In case of an All-or-Nothing (AoN) model only Campaigns reaching their entire Funding Target are considered successful. If a Campaign does not reach its Funding Target, then it is considered unsuccessful and investors get back the invested amount. From an investor’s point of view, this model is more attractive, because the Campaign Initiator can only spend the investments if he accumulates the entire amount, which is required to realize his business plan. Tokeportal.com applies this model, too. If the accumulated capital on the custodian account on the last day of the Campaign reaches the Minimum Funding Target, then the Campaign is considered successful and investors receive shares. If the Campaign is considered unsuccessful, investors get their investment back within 8 days.
In case of a Keep-it-All (KIA) model, the Campaign Initiator can use the accumulated funds, irrespective of reaching the Funding Target or not, but in this case, too, the Campaign Initiator can use the funds only for the purposes presented in his Campaign. Among these two models, the AoN involves less risk for investors, while the KIA model might be more attractive to Campaign Initiators. In specific cases, if only the number of manufactured products depends on the accumulated capital or the campaign promotes a social mission, then the KIA model does not involve significant risks either, since even a small fraction of the targeted capital may be used in the same way as if the entire targeted capital was accumulated.
The discussion and possibility to raise questions on the portal (crowd diligence) is an essential element of the campaign, during which the investors/backers may change their mind until the end of the campaign and withdraw their decision. The portals facilitate this in various ways, depending on the applied payment method. On those portals, which apply PayPal, the account of backers is debited but the amount will only be withdrawn at the end of the Campaign. In case of crowd investing Campaigns, in compliance with the rules of private placement, investors only declare their commitment to invest and wire their investment at the end of the campaign.