Also referred to as “crowdsourcing,” crowdfunding is the concept of raising startup money and capital through a series of contributions from supporters, customers, and business and personal networks rather than traditional bank loans and investors. According to Crowdfunding.com, it is: “Financial contributions from online investors, sponsors or donors to fund for-profit or non-profit initiatives or enterprises. Crowdfunding is an approach to raising capital for new projects and businesses by soliciting contributions from a large number of stakeholders.”
Signed by President Barack Obama in April 2012, The JOBS Act – Jump-start Our Business Startups – allows companies to raise up to $1 million a year via crowdfunding without the normal registration requirement for soliciting investors.
Posted From; http://fundingcharleston.com/crowdfunding/