Crowdfunding is a collective financing scheme also known as micro-patronage.
Crowdfunding collects small investments from many people to finance a specific project such as astart-up. It is a means for individual investors to access markets and opportunities that otherwise would not be available to them.
A classic example of crowdfunding is investing in start-up companies, where crowdfunding investors become shareholders in the company. Thus, instead of looking for large investors or as a sideline, start-ups allow many small investors to join in.