ABSTRACT
Crowdfunding is a recent practice of funding a business entity by raising funds from a large number of people, normally via the internet. It is a way of raising finance by asking a large number of people for a small amount of funds. Until recently, finance for a new business idea involved asking a few people for large sums of money. Crowdfunding switches this idea around, using the internet to make contact with hundreds of thousands of potential funders. Typically, those seeking funds will set up a profile of their project on a recognised crowdfunding website. Much like traditional forms of finance, there is equity and debt crowdfunding.
