So what is crowdfunding?
The short answer
“The practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.”
The longer answer
“Crowdfunding is a way to interact with individuals, communities and organisations for sourcing a fixed amount of loan or donation or investment money within a set timeframe via internet and digital social networks. Crowdfunding can be initiated for providing a necessary support to business and social welfare projects or ideas. Participants or sponsors of these types of initiatives may pledge a set minimum amount and may receive some reward in return (if any) based on their contribution. Funds are returned to the relevant parties if the crowdfunding initiative fails to raise the desired target money within a set timeframe.”
1. How does it work?
Video on crowdfunding as a form of crowdsourcing from crowdsourcing.org