Crowdfunding is the practice of raising funds through the mutual effort of friends, family, investors, and clients. This method, which usually takes place online, channels a larger pool of supporters by capitalizing on a business’ network and reach to get funded. There are currently three main types of crowdfunding.
| Donation Model | Reward Model | Equity Model |
| This model allows supporters to donate funds to individuals with no return. | Rewards based crowdfunding exchanges funds for a prepaid item, product, or service. | Allows supporters to receive partial ownership in the form of equity shares as compensation. |