Glossary
Crowdfunding
Crowdfunding: Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and crowdfunding platforms—and leverages their networks for greater reach and exposure.
Crowdfunding can be used to finance a variety of projects, including the development of a new product, a creative project, the start of a company, or even the support of a community cause. Participants in crowdfunding typically contribute small amounts of money to the project or cause, which cumulatively can lead to substantial sums that can make a significant impact.
Types of Crowdfunding:
Crowdfunding has revolutionized how projects and startups get off the ground and how nonprofits and philanthropic causes find support. It has democratized funding, reducing barriers and connecting creators with their audiences in ways that were not previously possible.