Crowdfunding is asking a lot of people (usually strangers who you do'nt know: a crowd) to help finance your business plans.
Crowdfunding uses social media and crowdfunding websites to bring entrepreneurs and investors together.
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In most countries, there are many crowdfunding websites for different kinds of projects. There are crowdfunding website for art-projects, for start-ups, etc.
Usually, you can add your project to these websites,s for free. Usually, there is a time limit: you must try to raise your capital before a certain date. If you don't succeed, then you don't get any money. Usually, you pay a percentage of the money that you raise or a fixed sum of money to the crowdfunding platform.
Before you choose a platform: read the small print!
Kickstarter is a well-known international crowdfunding platform for creative projects.
Usually, people contribute to your project as an investment: as soon as you start making a profit, you will have to pay them back - often with interest.
Donation-based crowdfunding is different. People don't invest in your product or event, they give you a donation (a gift of money).
In return for their donation, they usually receive some reward: a free ticket to your event, a copy of your book, their photo on your website, a personal meeting with you, etc.
Usually, people who donate more, will get a more interesting (and more expensive) reward.