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CrowdFunding Information - - CFP

posted Apr 3, 2013, 3:01 PM by Andrew Manzo   [ updated Apr 5, 2013, 4:25 PM by David Khorram ]

CrowdFunding is when an entrepreneur appeals to a group of people, usually over the Internet, and asks them to pool their money by making pledges to support his or her business. Crowdfunding is similar to peer-to-peer lending, but doesn't require that the loans be paid back with interest.

With small business loans becoming more and more difficult to acquire, and sites like Kickstarter making crowdfunding easier, this is becoming one popular way for small business owners to raise capital and start a business, launch a new product or service, or fund other company projects.

This infographic, created by Intuit, explains crowdfunding in more detail so you can determine if it could be an effective way to raise funds for your small business.