Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the internet. It allows creators, entrepreneurs, and causes to bypass traditional financing.

Models include rewards-based (backers receive a product or perk), equity-based (backers receive shares), debt-based (peer-to-peer lending), and donation-based. Platforms include Kickstarter, Indiegogo, and GoFundMe. Success depends on a compelling pitch, a clear goal, and effective promotion.

Key points

• Raising small amounts from many people
• Typically online
• Rewards, equity, debt, or donation models
• Requires strong pitch and promotion