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Crowd Funding Software

Crowdfunding, as its name suggests, is a funding method where common people like you and me, henceforth the crowd, fund your personal or business project with their own money. Thereís a term that we commonly use to describe this money-giving action; itís called a donation.

Crowdfunding is the process of raising money to fund what is typically a project or business venture through many donors using an online platform, such as Kickstarter, Indiegogo and Crowdfunder. The fundraising window is usually finite -- 90 days, for instance -- and the fees and rules vary across platforms.

How to: Crowdfunding is typically done through an online platform that allows the fundraiser to set up a public campaign for accepting donations. The campaign will advertise details such as the nature of the project or venture, the amount of money the company is hoping to raise and the campaignís fundraising deadline. People can donate a specified amount through the fundraising campaignís website and often receive some sort of acknowledgement or reward in return for their donation.

Applications of crowdfunding: This can range from charitable and educational projects to creative projects -- like funding films -- as well as supporting scalable businesses. Crowdfunding platforms each tend to cater to specific categories, such as Kickstarter which focuses on creative projects or Crowdfunder, an equity-based platform which is used for businesses looking to raise investment capital.

In 2013, the crowdfunding industry raised over $5.1 billion worldwide.

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