Crowdfunding allows groups of people to contribute to your project in return for a reward or an ownership piece of the project. Depending on the site, your project, and the amount of money involved, this can range from a public thank you on the project’s website to a percentage interest in the business.
Crowdfunding internet sites allow you to pitch your project or invention to site members and based on your pitch, members may pledge various amounts of money to fund you. It can be a way to get start up cash and create buzz on the web at the same time.
Different sites cater to different needs: Profounder is one of the larger investor focused business crowdfunding sites and Kickstarter tends to attract artists and inventors looking to fund creative projects.
Check out these and other sites if you’re looking for funding, but read the small print on the site agreement so you know what you’re agreeing to do in return for the funds. This is especially true if you are soliciting investors for a business venture because there are tons of SEC and other regulations about that…so be sure you understand the legal issues before beginning.