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What is crowdfunding & how does it work?

What Is Crowdfunding? What Is Crowdfunding? Crowdfunding is a method of raising funds for a business venture from a large number of backers through online platforms. Learn about the types, pros, and cons.

Is crowdfunding a business loan?

Unlike a business loan, crowdfunding doesn’t involve raising funds for your business through debt financing. With crowdfunding, there is no loan obligation or a need to pay back the funds. » MORE: How to get startup funding

What is equity based crowdfunding?

Equity-based crowdfunding: Equity-based crowdfunding allows small businesses and startups to give away a portion of their business in exchange for funding. These donations are a type of investment; participants receive shares in the business based on how much money they contribute. Most crowdfunding platforms have specific rules.

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