Crowdfunding is exactly as the name suggests. It is where average everyday people use the crowd (the public) to raise money for the purpose of launching a personal or business project.
The difference between Crowdfunding and a plain old donation is that you are offering and supplying some kind of stock, whether it be physical or digital to your backers, something from you and your team in return for their support.
The concept is very simple.
- You post your idea for backing
- Potential investors back if they like it and the rewards
- If you fail to raise the sum needed – project over
- If you raise the sum (or more) than needed project is go!
- You collect the funds
- You produce the product
- You deliver the project
- Everybody happy
This was a snapshot of what Crowdfunding is!