Crowdfunding is a form of alternative finance, which has emerged outside of the traditional financial system. It is a way of raising finance by asking a large number of people each for a small amount of money. Crowdfunding is useful for a variety of opportunities, whether fundraising for disaster-relief, creative projects, creating a salable product, or creating a start-up. Crowdfunding model is based on three types of actors: the project initiator who proposes the idea and/or project to be funded; individuals or groups who support the idea; and a moderating organization that brings the parties together to launch the idea.
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