What is crowdfunding?
Crowdfunding is a means of raising money to fund a business or project by using small amounts of money from many individuals (the crowd) rather than large amounts from just a few investors, as was the traditional way.
In my last post How Safe is Peer-to-Peer Lending?, I mentioned that there are different types of crowdfunding. These are often not clearly explained by the media because crowdfunding is a new and fast moving industry, and a result this can lead to some confusion among the public.
The 4 Types of Crowdfunding
There are 4 main types of crowdfunding.