In equity crowdfunding, a crowdfunding approach is used to raise investment capital, and contributors receive equity in the resulting business. It is a joint effort made between individuals to support the causes of other people or organizations in the form of equity. Contributors may act as investors and receive shares directly, or the crowdfunding service may act as a nominated agent. Equity crowdfunding helps "the 90 percent of businesses that were left out in the cold" by traditional funding methods, which is why it has become such a viable option for business startups. Equity-based funding is illegal in many countries, such as India. In the United States the JOBS Act of 2012 regulated the trend. This "legislation was intended to increase access to capital for the innovative companies" in need of investment capital and allows a pool of small investors to come together. The Regulation was updated in 2021 by the SEC allowing companies to up to $5 million per year from unaccredited investors and allowing investors to invest more. Reward-based crowdfunding This mode, also known as "non-equity" funding, has become increasingly popular, with a 230 percent increase in 2012. Reward-based crowdfunding may fund campaigns supporting the free development of software, the promotion of motion pictures, scientific research, development of inventions, etc. Reward-based funders expect a return from the project. Debt-based crowdfunding This is known as "Peer to Peer", "P2P", "marketplace lending", or "crowdlending". Borrowers set up campaigns to fulfill their financial needs, and lenders contribute toward the goal for an interest. This method of online funding may prove to be "a threat to the traditional banking system in the areas of consumer and business loans, as has already been demonstrated by the rapid success of [these] online lending marketplaces." Litigation crowdfunding A plaintiff requests a monetary donation to fund a court case. If the claimant wins, investors may get more than their initial investment. Donation-based crowdfunding This type of crowdfunding "is part of a trend in which people are relying less on charities to help them fulfill their philanthropic aims". The best example might be raising funds from individuals to support personal or social causes. Variables in online crowdfunding People make donations for different reasons and give to different entities. Donors may give to feel good about themselves or because they believe in a cause. Some donations are made to individuals while others are made to organizations. The same