What is Crowdfunding?

A definition of Crowdfunding

“Crowdfunding is a method where individuals or businesses fund a project or venture by raising small amounts of money from a large number of people, typically via the internet.”

Crowdfunding in Business Glossary - What is Crowdfunding?

Business Glossary > What is Crowdfunding?


Examples of Crowdfunding in a Sentence:

Crowdfunding can help entrepreneurs raise money for their ideas.

Many creative projects have been launched through crowdfunding platforms.

Using crowdfunding, a startup can gauge interest in its product.

Why is Crowdfunding Important in Business?

Crowdfunding allows entrepreneurs to access capital, test the market for their ideas, and build a community around their products or services. It democratizes funding and decreases reliance on traditional financial institutions.

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Associated Terms

Here are some associated business terms and synonyms for “Crowdfunding”:

  • Peer-to-peer funding
  • Collaborative financing
  • Collective fundraising

Kickstarter Crowdfunding

Kickstarter is a leading crowdfunding platform that has helped projects in various industries, including film, technology, and music, secure funding from backers around the world. It allows creators to reach a wide audience and gain financial support for their initiatives.

Final Notes on Crowdfunding

Crowdfunding can be a viable option for financing, but it’s crucial to have a strong pitch and marketing strategy. Understanding the platform’s rules and nurturing relationships with backers can enhance the chances of success.


This has been a definition of Crowdfunding meaning.

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