Crowdfunding is a well-known startup financing mode where money is procured from large number of people usually through the internet. Here, the promoter presents his business to large number of interested financiers. The investors are offered with opportunity to make investment in the proposed venture.
Crowdfunding is essentially the opposite of the mainstream approach to business. Here, it’s much easier for the promoter to provide the opportunity in front of more interested parties and give them more ways to invest in the business in return for equity or debt.
