Crowdfunding is an investment strategy whereby the investee aims to receive investments from a large number of individuals, rather than a smaller group of higher-stake investors.
There are four major types of crowdfunding: equity, rewards, donation and debt; and there are key online platform that facilitate transactions for each respective crowdfunding type.
Crowdfunding is typically conducted through a crowdfunding campaign, where the founder needs to capture the attention (and trust) of a large number of backers and convince them that the company or project is worthy of their investment.
Major crowdfunding platforms are:
Equity crowdfunding:
Donation crowdfunding
Debt crowdfunding
Reward crowdfunding: