Crowdfunding is an atypical finance system which has emerged as the newest and highly effective financing platform for entrepreneurs looking to raise capital for their startup or small business.
Crowdfunding in simpler terms is getting monetary sponsors for your new startup through funding campaigns. The Most common and known way of crowdfunding is through several crowdfunding websites but it can be done in many other ways, such as simply reaching out to family, friends, and colleagues.
A crowdfunding campaign has three main parties involved, You! Of course, the campaign initiator, the sponsors or donators that make the monetary contributions, and the mediator, which in most cases is the crowdfunding website. With crowdfunding, you have two options for raising funds: