Crowdfund Meaning: Definition, Examples, and Translations
๐ฐ
crowdfund
[kraสd fสnd ]
Definition
fundraising project
To crowdfund means to raise money for a project or venture by collecting small amounts of money from a large number of people, typically via the internet. This method allows individuals or organizations to finance creative ideas, businesses, or causes by appealing directly to potential supporters. It has become increasingly popular due to the rise of online platforms that simplify the fundraising process and allow for a wide reach. Crowdfunding can take various forms, such as reward-based, equity-based, or donation-based crowdfunding.
Synonyms
collect contributions, finance, raise funds, solicit donations.
Examples of usage
- Many artists choose to crowdfund their projects.
- The startup decided to crowdfund their new app.
- She successfully crowdfunded her documentary.
- They crowdfunded the community center renovation.
- It's common to crowdfund for charitable causes.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Technology
- The online crowdfunding model uses social media and digital platforms to reach potential backers.
- Platforms like Kickstarter and Indiegogo revolutionized how creators gather funds, allowing anyone with an idea to seek financial support.
- Crowdfunding technology often includes tools for tracking funding progress in real-time, engaging more supporters.
Economics
- Crowdfunding allows entrepreneurs to bypass traditional funding routes, reducing reliance on banks or investors.
- It stimulates micro-investment, where many people contribute small amounts, making it accessible.
- This model can democratize funding by allowing supporters to have a say in which projects move forward.
Cultural Impact
- Crowdfunding has empowered creators, allowing diverse projects and ideas that may not fit conventional funding models.
- It has influenced pop culture; for example, many independent films have been made possible through popular campaigns.
- It has changed how people view entrepreneurship and creativity, promoting a sense of community and shared success.
Social Psychology
- Crowdfunding taps into the psychology of collective action, as people feel motivated to contribute to community projects.
- Individual backers often feel invested and connected to successful projects, enhancing their emotional engagement.
- Successful campaigns can create a sense of belonging and shared purpose among supporters, leading to stronger community ties.
Origin of 'crowdfund'
Main points about word origin
- The term combines 'crowd' meaning a large group of people and 'fund' which refers to money collected for a particular purpose.
- It first gained popularity in the early 2000s with the rise of internet-based funding platforms.
- The concept itself, of pooling resources, has existed for centuries, but the specific term emerged with crowdfunding websites.
The term 'crowdfund' emerged in the early 2000s, combining the words 'crowd' and 'fund.' The word 'crowd' refers to a large group of people, while 'fund' indicates the act of providing financial resources. The rise of the internet and social media facilitated the development of crowdfunding platforms such as Kickstarter and Indiegogo, allowing individuals and entrepreneurs to solicit financial support easily from a global audience. This method of funding gained popularity during the 2008 financial crisis when traditional financing sources became scarce. It represents a shift in how creatives and businesses access capital, making it more democratic and accessible for those who may not qualify for conventional loans or investments. Crowdfunding has continued to evolve, giving rise to various models and strategies, affirming the growing importance of collective financial support.