Social media is changing more than the way we market and communicate; it is changing the way we raise capital.
Crowdfunding websites are popping up and connecting entrepreneurs with investors, producers with patrons, and causes with contributors.
According to www.socialmediaexaminer.com, crowdfunding builds upon the idea of crowdsourcing: “the act of outsourcing tasks, traditionally performed by an employee or contractor, to an undefined, large group of people or community (a “crowd”), through an open call.”
Crowdfunding pulls together a community – tightly knit or disparate – to fund a project, business or cause, usually via the Internet.
How crowdfunding works
Although the rules differ from site to site, generally, people (or businesses or charities) pitch an idea, set a fundraising goal and set a deadline for raising funds.
Potential patrons can review the pitches and…
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