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Crowdfunding Definition

Crowdfunding is the method of obtaining capital in small amounts from a wide base of people to launch a new project. Through the use of social media and online platforms, businesses have easy access to a wide number of people that are interested in their next venture.

Types of Crowdfunding:

Within this method of raising capital, there are a few different types. These types include the following:

  • Donation
  • Rewards
  • Debt
  • Equity

Learn more about the different types here. 

Crowdfunding Examples:

Additionally, some examples include popular websites like KickStarter and GoFundMe, which were some of the first online platforms. Now that this mechanism of raising funds allows both businesses and individuals to raise funds for their next venture or be the investor, the market continues to see many new ideas come to life.

Of course, you can learn more about how it has changed the game for many industries here.