CrowdFunding occurs when many ordinary people put small amounts of money (typically $10 to $200) into projects that they believe in. For example, a designer needs to raise $30,000 to place an initial order for a watch that he/she has designed. If 430 people put up an average of $70 each, then the project can be funded, and the watch can become a reality.
The foundation of the Statue of Liberty was paid for by CrowdFunding, promoted then by a New York Newspaper. They raised over $100,000, and the average person put in one dollar.
Posted from; http://start.ac/what-is-crowd-funding