Definition of Crowdfunding

Crowdfunding uses social media and the internet to help people to raise funds for their innovative products or business ideas. Crowdfunding brings a pool of investors to invest in common people ideas as compared to traditional business owners, venture capitalists, or relatives/friends. These funds help an individual to overcome financial hardship and achieve his inspiring goals. These funds can also be used for medical treatment or for fulfilling a student’s desire to attending a university and much more.


Crowdfunding platforms allow investors to fund as low as $10 from hundred of projects listed. Crowdfunded websites earn from the decided percentage of the raised funds. Security and Exchange Commission (SEC) regulates crowdfunding ventures in the United States.

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