Crowdfunding is a way for new and small businesses to raise funds by asking a large number of people (the ‘crowd’) for relatively small amounts of money.
Traditionally, if you wanted to finance a business, project or venture you'd have to ask a small number of people for large sums of money - often called 'angel investors'.
Crowdfunding has turned the tables on this traditional method and allows you to use the internet to engage with millions of potential funders.
Usually, those seeking funds will set up a profile about their business, project or venture on a crowdfunding website - which is sometimes referred to as a crowdfuding platform.