- The concept, also referred to as equity crowd- funding is a collective effort by individuals who network and pool their resources, usually via the Internet to support efforts initiated by other people or organisations.
- Crowd funding is used in support of a variety of activities, including philanthropic activities, political campaigns and scientific research.
- Thousands of East Africans participate in crowd fundraising drives every day to pay for everything from weddings to school fees to community rehabilitation. It is only recently that mobile technologies have been used to reduce costs and automate manual processes.
- Crowd funding also refer to the funding of a company by selling small amounts of equity to many investors.
- Kickstarter, a New York City–based website founded to support creative ventures, has become a force in financing technology startups.
- If crowd funding sites start offering equity shares, it will make a few dozen Venture Capital firms disappear.
- Many crowd funding companies will allow startups to raise between $1,000 and $1,000,000 for their projects, while also publicising their ideas across multiple web platforms.
- The new crowdfunding were started because inventors were tired of looking for an investor for their projects.