Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people. Crowdfunding is a form of crowdsourcing and of alternative finance. In 2015, it was estimated that worldwide over US$34 billion was raised this way.
Although the concept can also be executed through mail-order subscriptions, benefit events, and other methods, it is now often performed via Internet-mediated registries. This modern crowdfunding model is generally based on three types of actors: the project initiator who proposes the idea and/or project to be funded, individuals or groups who support the idea, and a moderating organization (the “platform”) that brings the parties together to launch the idea.
Crowdfunding has been used to fund a wide range for-profit entrepreneurial ventures such as artistic and creative projects, medical expenses, travel, or community-oriented social entrepreneurship projects.
1.”Cambridge Judge Business School: Cambridge Centre for Alternative Finance”. Jbs.cam.ac.uk. Retrieved 2015-07-24.
2.Barnett, Chance (June 9, 2015). “Trends Show Crowdfunding To Surpass VC In 2016″. Forbes. Retrieved June 29, 2016.
3.”Oxford Dictionary Definition of Crowdfunding”. Retrieved July 23, 2014.; The Merriam Webster Dictionary defines crowdfunding as “the practice of soliciting financial contributions from a large number of people especially from the online community” “Merriam Webster Dictionary Definition of Crowdfunding”. Retrieved July 23, 2014.
4.”Crowdfunding: Transforming Customers Into Investors Through Innovative Service Platforms”. Retrieved February 7, 2013.