What is Crowdfunding?
Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large pool of people via the internet. Crowdfunding is a form of alternative finance. It’s a source of capital outside the traditional financial system of banks, stocks, and bonds. An entity or individual raising funds through crowdfunding typically seeks small individual contributions or investments from as many people as possible. Crowdfunding has turned out to be a game-changer, creating a wave of disruption across all industries and transforming access to capital.
Crowdfunders share information about a project, cause, idea or business with the public who uses’s the information to decide to fund or invest in the campaign. Crowdfunding is an example of the concept of the "wisdom of the crowd" – which shows large and inclusive groups of people who back, pledge or invest in your crowdfunding campaign are more valuable long term than having the same money come from an elite few.
We focus on three types of crowdfunding marketing:
Reward-based – Non-financial rewards, e.g., products below list price
Equity-based – Equity returns, e.g., shares and, dividends
- Donation-based – No rewards, e.g., connection, support, help, altruism, good will