Crowd funding is the collective efforts of a community or network (friends, family, colleagues, perfect strangers in the online community) to support a creative or business venture.
Krishna De talks about Ireland’s ‘first’ crowdfunding site www.fundit.ie, and this post is well worth a read.
Belleflamme et al. (2011) give us a more comprehensive definition below.
“In the case of crowdfunding, the objective is to collect money for investment; this is generally done by using social networks, in particular through the Internet (Twitter, Facebook,LinkedIn and different other specialized blogs). In other words, instead of raising the money from a very small group of sophisticated investors, the idea of crowdfunding is to obtain it from a large audience (the “crowd”),where each individual will provide a very small amount”.