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Crowdfunding

The term crowdfunding is a combination of the two words crowd and funding.

Underlying principle

Crowdfunding is a financing model in which company founders, artists and organisers call on small investors to provide financial support for their business ideas via the internet. On a website or special crowdfunding platforms, the respective project is presented, as well as the necessary capital and the expected shares of the project yield.

Related Terms

Similar to crowdfunding, there is another possibility of support for small businesses, the so-called crowdsourcing.