How Crowdfunding Works In Simple Ways

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Crowdfunding is the technique of raising small amounts of money from a large number of individuals to fund a project or endeavour, most commonly over the Internet in modern times. Crowdfunding is a type of alternative finance and crowdsourcing.

Crowdfunding uses social media and crowdfunding platforms to connect investors and entrepreneurs, with the potential to encourage entrepreneurship by broadening the pool of investors beyond the typical circle of owners, family, and venture capitalists.

Hundreds of projects are available to choose from, and investors or supporters of a project can contribute as little as $5. Crowdfunding sites make money by taking a cut of the funds raised.

Crowdfunding sites make money by taking a cut of the funds raised. The most popular crowdfunding platforms are Kickstarter, Indiegogo, and GoFundMe.

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