What is the concept of “crowd funding” in finance?

Crowdfunding is a method of raising capital from a large number of people, typically via the internet, to fund a project, startup, or venture. Entrepreneurs or project creators present their ideas on crowdfunding platforms like Kickstarter, GoFundMe, or Indiegogo, offering various incentives or rewards for backers who contribute funds. Crowdfunding allows individuals or small businesses to raise money without relying on traditional financial institutions or investors. It is especially useful for creative projects, social causes, and new product ideas. While crowdfunding offers opportunities for entrepreneurs, it also carries risks, as there is no guarantee of success or return on investment.