Crowdfunding: meaning, definitions and examples
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crowdfunding
[ ˈkraʊdˌfʌndɪŋ ]
fundraising method
Crowdfunding is a method of raising capital through the collective efforts of a large number of people, typically via the internet. It allows individuals or organizations to secure financing by appealing directly to a wide audience, often through online platforms. This fundraising technique is increasingly popular with startups and creative projects, enabling them to reach their funding goals without relying on traditional investors. Crowdfunding can take various forms, including donation-based, reward-based, equity crowdfunding, and debt crowdfunding.
Synonyms
collective funding, crowdsourcing, public funding.
Examples of usage
- The startup successfully financed its new product through crowdfunding.
- Many artists use crowdfunding to fund their creative projects.
- Crowdfunding has revolutionized how entrepreneurs seek startup capital.
Translations
Translations of the word "crowdfunding" in other languages:
🇵🇹 financiamento coletivo
🇮🇳 क्राउडफंडिंग
🇩🇪 Crowdfunding
🇮🇩 crowdfunding
🇺🇦 краудфандинг
🇵🇱 crowdfunding
🇯🇵 クラウドファンディング
🇫🇷 financement participatif
🇪🇸 financiación colectiva
🇹🇷 kitle fonlaması
🇰🇷 크라우드펀딩
🇸🇦 تمويل جماعي
🇨🇿 crowdfunding
🇸🇰 crowdfunding
🇨🇳 众筹
🇸🇮 crowdfunding
🇮🇸 fjármögnun í gegnum fjöldann
🇰🇿 краудфандинг
🇬🇪 კრაუდფანდინგი
🇦🇿 kütləvi maliyyələşdirmə
🇲🇽 financiación colectiva
Etymology
The term 'crowdfunding' emerged in the early 2000s, combining 'crowd', referring to a large group of people, and 'funding', the act of providing financial resources. It gained prominence around the mid-2000s with the rise of platforms like Kickstarter and Indiegogo that facilitated this approach. Initially used to describe fundraising for creative projects and startups, the concept expanded to include various forms of fundraising, such as donation-based and equity crowdfunding. The success stories of crowdfunded projects helped to popularize the model, leading to further innovations and regulations in the industry. By the 2010s, crowdfunding had become a significant part of the entrepreneurial ecosystem, allowing creators and businesses to validate their ideas and gain financial support from the public. Today, crowdfunding continues to evolve, integrating with social media and online marketing strategies, and is recognized as a powerful tool for democratizing finance.