What Is Crowdfunding?

By Catherine Brock – Updated Feb 26, 2025 at 2:44 PM

Key Points

Crowdfunding platforms like Kickstarter allow project funding via public pledges.
Projects must meet set goals to receive funds; fees apply, such as Indiegogo's 5%.
Glowforge raised $27.9M through crowdfunding, surpassing its $100K target.

Crowdfunding is the practice of raising a large amount of capital via small pledges from many backers. This method of fundraising is used by individuals in need, content creators, and businesses.

Loading paragraph...

Green paper cut-outs of people holding hands around a pile of money. — Image source: Getty Images.

Loading paragraph...

Positive Feedback Loop

In business, a positive feedback loop is when companies listen and respond to input from employees.

Loading paragraph...

Private Equity vs. Venture Capital: What’s the Difference?

Curious about the relationship between private equity and venture capital? You've come to the right place. Let's take a look.

Top 8 Artificial Intelligence Start-Ups to Watch in 2025

Learn about AI start-ups and how they're impacting the rapidly evolving artificial intelligence industry.

Loading paragraph...

About the Author

Catherine grew up in Southern California wearing a lot of black and trying to perfect the art of sarcasm. Prior to joining The Fool as a contract writer, Catherine was climbing the corporate ladder in marketing roles and dabbling in too many side hustles. When she's not writing, she can be found riding a horse in the country or shopping online for clothes.

XMFCatherineJB

@catherinejbrock

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Catherine Brock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.