You make a pitch to a community of people who have capital. Those who take a vested interest in your project agree to loan you a set amount of money. You then agree to repay their money, plus interest, in time. The beauty of crowdfunding is the income and funding potential is enormous. Someone, somewhere will have an interest in your project and will help you fund it.
The explosion of the Internet as a viable medium for business gave birth to this new phenomenon. According to Howard Orloff , owner of http://www.crowdfunding-website-reviews.com, the opportunities keep coming in, “What was an initial explosion of crowd funding has become something just short of a Big Bang. Money, ideas, funding and people are continually coming together under this umbrella of crowdfunding. It is still growing, and it does not look like it will level out any time soon.”
Founded in 2010, the industry website, Crowdsourcing.org, is a neutral organization dedicated solely
to crowdsourcing and crowdfunding. As one of the most influential and credible authorities in the crowdsourcing space,
Crowdsourcing.org is recognized worldwide for its intellectual capital, crowdsourcing and crowdfunding
practice expertise and unbiased thought leadership.