Crowdfunding is a way of raising money by collecting small amounts from a large number of people, usually via the internet. It’s commonly used to fund:

• Startups or small businesses

• Creative projects (like films, books, music)

• Product launches

• Personal causes (like medical expenses or emergencies)

• Nonprofit or social campaigns

How it works:

1. You create a campaign on a crowdfunding platform (like Kickstarter, GoFundMe, or Indiegogo).

2. You tell your story — explain what you're raising money for, set a goal, and sometimes offer rewards or incentives.

3. People donate or invest — friends, strangers, or followers contribute what they can.

4. You reach your goal (hopefully) and use the funds for your project.

There are different types:

• Reward-based: Backers get something in return (e.g., a product or service).

• Donation-based: People give without expecting anything back.

• Equity-based: Investors get a share in the business.

• Debt-based: Money is loaned with the expectation it will be paid back.