What Is Crowdfunding and How Does It Work?

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Crowdfunding raises money through small contributions from many people. Click to learn how it works and why creators use it to launch big ideas.

Crowdfunding is the process of raising money from a crowd — typically online — to support a product, project, or cause. Supporters can contribute as little or as much as they want, often in exchange for perks, rewards, or early access.

It is widely used by creators, entrepreneurs, and nonprofits to fund everything from tech gadgets and books to social causes and community initiatives. Platforms like Kickstarter, GoFundMe, and Indiegogo are commonly used for these campaigns.

To explore more, visit trusted sources like Wikipedia’s guide to crowdfunding, GoFundMe, and Business.gov.au for regional insights.