The practice of funding a project, new idea or venture by raising many small amounts of money from a large number of people, typically via the Internet.

Principles of crowdfunding

Individuals, groups and organisations use a crowdfunding platform to post a project and a target sum of money that would enable the project to be carried out. As the crowdfunding sector has developed and become increasingly popular, variations on the concept have emerged. The three most common types are Donation-based crowdfunding (for projects which are charitable or philanthropic), Rewards crowdfunding (prospective funders are offered an incentive in return for their contribution) and Equity based (funders become investors).

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