9.8 : Crowdfunding

Crowdfunding is a method of raising money from many people, usually via online platforms. It allows individuals, startups, or organizations to collect small contributions from many backers to support a project, business idea, or cause. This modern approach to fundraising has gained popularity due to its accessibility and efficiency.

There are different types of crowdfunding: donation-based, where people give money without expecting anything in return; reward-based, where backers receive perks or products in exchange for their contributions; equity crowdfunding, which allows investors to gain shares in a company; and debt crowd which is peer-to-peer lending, where contributors lend money with an expectation of repayment with interest.

Popular crowdfunding platforms include Kickstarter, Indiegogo, GoFundMe, and Patreon. These platforms help creators and entrepreneurs reach a wider audience, validate their ideas, and secure funding without relying on traditional investors or banks.

However, crowdfunding also has risks like project failures, scams, and unmet expectations. This means that both fundraisers and backers should conduct proper research before participating.

Crowdfunding has revolutionized fundraising, making it more democratic and accessible worldwide to innovators, artists, and social causes.