Introduction:
Crowdfunding is a way to raise capital by collecting small amounts of money from a large number of people, typically via an online platform.

Definition:
In crowdfunding, entrepreneurs present their business idea or product to a community online, and supporters pledge money in exchange for early access, rewards, or equity.

How It Works / Examples:
Platforms like Kickstarter and Indiegogo allow new businesses to launch products without traditional financing. For example, an entrepreneur might crowdfund the production of a new gadget by offering backers the product at a discounted rate.
Learn more on Wikipedia: Crowdfunding.

Why It Matters:
Crowdfunding reduces reliance on banks and investors while providing validation for a product idea. It can also build an early customer base and generate buzz before a full-scale launch.

Additional Resources:

• Read success stories on leading crowdfunding platforms for practical insights.