What is crowdfunding? Is my money safe? How does it work?

Crowdfunding is a way of raising money to finance projects and businesses. It enables fundraisers to collect money from a large number of people via online platforms. Crowdfunding is most often used by startup companies or growing businesses as a way of accessing alternative funds.

Crowdfunding is a way to raise money from a large number of people. Large groups of people pool together small individual investments to provide the capital needed to get a company or project off the ground. Individuals, charities or companies can create a campaign for specific causes and anyone can contribute.

There are different types of crowd funding. Most done by non-profit organizations may offer gifts which may be of lower value than the amount contributed. Maybe crowd funding for an orphanage you get some crafts they make as a thank you. For others you get early bird prices for their merchandise. For some, you get a percentage of the money back as interest over a period of time and the initial contribution back too after that time has ended. e.g 10% for 10 months and the initial contribution after 10th month.