Crowdfunding

Crowdfunding, also sometimes known as Crowdsourced Funding, is a type of fund-raising in which a business or individual raises money by collecting small amounts of money from a large group of people over the internet, usually through an online platform. Through crowdfunding, entrepreneurs can raise money from people who believe in their project or product and want to be involved in helping them to succeed.

Crowdfunding involves raising funds from a large number of individuals who believe in the entrepreneur's project or product and want to help fund it and make it a reality. It is an effective way for people to support causes or businesses that are important to them. There are various online platforms where people can make their crowdfunding campaigns. Individuals can donate money and/or services and goods in return for rewards, or can just donate to the cause. Rewards could be anything from a special thank you letter, to dinner with the founders, or even a free product from the company.

The crowdfunding trend has been growing since its inception in the late 2000's. It has been used for many different purposes from political campaigns to personal projects to fundraising events. It has been especially helpful in launching a new business as it reduces the risk for entrepreneurs and makes startup costs more attainable.

For example, let’s say a group of entrepreneurs have an idea for a new product, but need to raise funds to get it off the ground. They can create an online crowdfunding campaign and solicit donations from friends, family, and other interested individuals. Then, they can offer special rewards to the supporters - such as a sticker or t-shirt with their logo - in return for larger donations. This way, it can help to create a buzz around their product and make it more likely that it will succeed.