Crowdfunding refers to the practice of funding a project or venture by raising money from a large number of people who each contribute a relatively small amount, typically via the Internet. The objective for raising such funds could be projects such as business ventures, or public interest causes. Small financial contributions from a number of persons cumulatively may fulfill the fund requirements of the Investee who otherwise lacked access to such funds.
Crowdfunding is predicted to be one of the biggest financial changes in history. Commentators are of the opinion that it would revolutionize the way money is exchanged in India. If regulated appropriately, crowdfunding can provide an excellent funding alternative for early-stage startups and ventures.
Donation crowdfunding denotes solicitation of funds for social, artistic, philanthropic, or another purpose, and not in exchange for anything of tangible value. Donation-based crowdfunding can also be used in an effort to raise funds for charitable causes.
WHAT IS CROWDFUNDING?
In its simplest form, Crowdfunding is a practice of giving monetary funds to overcome specific social, cultural, or economic hurdles individuals face in their daily lives.