Crowdfunding is the practice of funding a project of venture by raising monetary contributions from a large number of people. It typically occurs via the Internet and is aimed at raising funds for a common service, project, product, investment, cause, or experience. Major platforms include Kickstarter Indiegogo and Seedrs among others.
The crowdfunding model involves three types of actors: the project initiator who proposes the idea and/or project to be funded; individuals or groups who support the idea; and a moderating organization or platform that brings the parties together to launch the idea. Crowdfunding platforms serve as “network orchestrators,” creating the necessary organizational systems and conditions for resource integration among other players to take place.
Although crowdfunding is often used to fund startup companies, it’s also used to help fund creative work, such as blogging, journalism, music and independent film.