What does Crowdfunding mean?

Definitions for Crowdfunding
crowd·fund·ing

This dictionary definitions page includes all the possible meanings, example usage and translations of the word Crowdfunding.

Wiktionary

  1. crowdfundingnoun

    Funding by many individuals pooling their money together for a common goal, usually via the Internet.

Wikidata

  1. Crowdfunding

    Crowdfunding is the collective effort of individuals who network and pool their money, usually via the Internet, to support efforts initiated by other people or organizations. Crowdfunding is used in support of a wide variety of activities, including disaster relief, citizen journalism, support of artists by fans, political campaigns, startup company funding, motion picture promotion, free software development, inventions development, scientific research, and civic projects. Crowdfunding can also refer to the funding of a company by selling small amounts of equity to many investors. This form of crowdfunding has recently received attention from policymakers in the United States with direct mention in the JOBS Act; legislation that allows for a wider pool of small investors with fewer restrictions. While the JOBS Act awaits implementation, hybrid models, such as Mosaic Inc., are using existing securities laws to enable the public in approved states to invest directly in projects as part of a crowd. Crowdfunding has its origins in the concept of crowdsourcing, which is the broader concept of an individual reaching a goal by receiving and leveraging small contributions from many parties. Crowdfunding is the application of this concept to the collection of funds through small contributions from many parties in order to finance a particular project or venture.

Editors Contribution

  1. crowdfunding

    Funding provided by a group of people who put their money together for a common goal.

    Many individuals provided some money together to support the community centre expansion which was demonstrable to improve the lives of all ages.


    Submitted by MaryC on January 1, 2020  

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Numerology

  1. Chaldean Numerology

    The numerical value of Crowdfunding in Chaldean Numerology is: 9

  2. Pythagorean Numerology

    The numerical value of Crowdfunding in Pythagorean Numerology is: 3

Examples of Crowdfunding in a Sentence

  1. Hiral Sanghavi:

    Angel investing is something that I believe you can completely get rid of with crowdfunding, angels come at the seed stage and crowdfunding literally has the ability to kill it. Related : How This Couple Created the All-In-One Travel Jacket That Is Nearing $ 2 Million on Kickstarter While Hiral Sanghavi is a fan of the benefits of crowdfunding, This Couple’s also learned firsthand that This Travel Jacket’s by no means easy. This Travel Jacket requires some serious hustle. This Couple first campaign, a blockbuster success, was stressful. Hiral Sanghavi learned a few things. Here are This Couple top three tips for crowdfunding success : The first BauBax travel jackets shipped four months late. Part of the reason for the delay was because the BauBax team expected to raise only $ 20,000. They raised $ 9.2 million on Kickstarter and another $ 2.3 million on Indiegogo. That meant that BauBax had to manufacture a whole lot more jackets than it had been expecting to sell.

  2. Jeff Annison and Paul Scanlan:

    We don’t expect these companies to experience much success. Equity crowdfunding isn’t easy or inexpensive, and the SEC has important safeguards like bad actor checks and reporting requirements that will eliminate most of the riff-raff, plus, the public is sophisticated these days and has access to enough information to make well-informed decisions.

  3. Swati Chaturvedi:

    One key aspect of the final rules that I think will be beneficial to startups is that there are no required audited financial statements for first time crowdfunding issuers, providing audited financial statements is an expensive and time intensive process – one that many startups cannot afford at their current stage of growth. Allowing reviewed financial statements instead of audited ones lowers the cost for startups who are seeking to raise funding.

  4. Richard Swart:

    Investors in all early stage securities know that bad news always comes before the good, meaning that firms who go out of business tend to do so faster than the firms that have exit events and provide returns to investors, if investors are educated about investing in early stage companies, and have diversified their investments, they can and should ride out the inevitable failure of some firms. However, most investors fear loss more than they appreciate gains and it will take time for the market to learn what the cycle of returns looks like for this form of equity crowdfunding investing.

  5. Richard Swart:

    Corporations are realizing there is a lot of social engagement on crowdfunding platforms that can drive corporate innovation and offer alternatives to focus groups.


Translations for Crowdfunding

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"Crowdfunding." Definitions.net. STANDS4 LLC, 2024. Web. 15 Jun 2024. <https://www.definitions.net/definition/Crowdfunding>.

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