What does "crowdfunding" typically involve?

Crowdfunding typically involves gathering small amounts of money from a large number of people, usually through online platforms. This method democratizes fundraising by enabling individuals or organizations to promote their projects or ideas to a broad audience, allowing anyone to contribute financially, regardless of their wealth. Crowdfunding campaigns are often structured around specific goals, where backers can receive rewards or incentives for their contributions, fostering a sense of community and investment in the success of the project.

This approach contrasts with other fundraising methods where funds may come from fewer, larger donations or institutional sources. Crowdfunding harnesses the power of social media and networks to reach potential backers globally, enabling creators to validate their ideas and engage with supporters directly.