What is Crowdfunding?

What is Crowdfunding?

Crowdfunding is the raising of funds through the collection of small contributions from the general public (known as the crowd) using the Internet and social media. Crowdfunding has its origins in the concept of crowdsourcing, which is the broader concept of an individual reaching a goal by receiving and leveraging small contributions from many parties.

The key to crowdfunding in the present context is its inextricable link to online social networking and its ability to harness the power of online communities in order to extend a project’s promotion and financing opportunities. The non-profit sector was the first to  successfully employ crowdfunding in its present online form.

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Crowdfunding

Crowdfunding

Raising funds for your business can be a challenge. Crowdfunding — collecting financial contributions from many strangers not usually connected to the financial sector — represents an alternative to traditional forms of financing your business dream.

Crowdfunding is usually done over the Internet, for a fee, through crowdfunding platforms and funding portals. Participating in online communities dedicated to this type of fundraising can help you collect donations, offer rewards and take pre-orders. Equity crowdfunding is being considered by some provincial and territorial securities regulators, and could become an option in some regions. Stay informed about what you can and can't do.

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