What Is Crowdfunding?
Crowdfunding is a practise of raising money from a large group of people to fund an idea mostly through the internet. Generally, the large group of people are the well wishers and supporters of the project. The project creator, who raise money, choose a certain crowdfunding platform in the internet like Kickstarter, Indiegogo, Grasruts.
In crowdfunding the project is called a Campaign, people who contribute money to a campaign is called a Backer and the money contributed is called Pledge.
Crowdfunding can also be considered as an alternate financing.
There are 4 different types of crowdfunding.
- Reward Based Crowdfunding
- Equity Based Crowdfunding
- Donation Based Crowdfunding
- Debt Based Crowdfunding
The most popular crowdfunding type is the Reward Based Crowdfunding. The second most popular is the Donation Based Crowdfunding. A new and rising in popularity crowdfunding is Equity Based Crowdfunding.
