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Crowdfunding is raising money from many people, typically through the internet. It works by having people pledge money to a project or venture, usually in return for rewards or perks.
Crowdfunding has become popular in recent years as a way for people to raise money for all sorts of projects and ventures, from business startups to charitable causes.
Crowdfunding has revolutionized the way businesses can acquire capital to execute projects and turn their vision into reality. It is a method of fundraising for a cause or project through small monetary donations that are collected from a large number of people in either one single payment or installments. It utilizes online platforms to connect the crowdfunding seekers with the crowdfunding contributors on one platform allowing startups, individuals and organizations to raise capital for their projects without going through traditional financial channels, such as banks and venture capitalists. Such democratization of investment and financing has made crowdfunding an efficient, accessible and fast method of raising funds.
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