Large numbers of people can each contribute small amounts to fund a project. Crowdfunding is that method of raising capital. Platforms connect creators or entrepreneurs with potential backers who receive rewards, equity, or simply the satisfaction of supporting something they believe in. Campaigns typically set a funding goal and a deadline.

Reward-based crowdfunding offers products or experiences in return for pledges. Equity crowdfunding offers a share of ownership. Donation-based models support charitable or personal causes. Success depends on a compelling story, a clear offer, and the ability to reach an audience that cares. Many campaigns fail to reach their goals; those that succeed can validate demand as well as raise money.

Crowdfunding has lowered barriers to entry for inventors, artists, and social entrepreneurs. It also exposes projects to public scrutiny and to the logistical challenges of delivering on promises at scale. Regulation varies by jurisdiction, especially for equity models. For many ventures it remains a viable alternative or complement to traditional financing.