Traditional crowdfunding was originally very different from raising money using other investment sources.
It is important to clarify what kind of crowdfunding is being discussed because the term is being applied to diverse types of fundraising.
Defining Crowdfunding for Small Business
While some refer to what Kickstarter does as “donation crowdfunding”, most of the money raised there is actually reward-based.
Backers can make donated pledges without receiving rewards; however, the majority of amounts are pledged to qualify for a specific reward.
