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Definition:

Crowdfunding, otherwise know as reward-based Crowdfunding is a financing form independent from financial institutions, location of the campaign creator or investor. Reward-based Crowdfunding campaigns can be initiated for a wide range of different purposes such as product launches, art-, music- and film-financing, software development, scientifc research etc. Usually there is a financing goal defined by funding volume and time to reach this goal for every campaign. The campaign creator publishes engaging content (e.g. photos, videos, text) that explain the goal and motivation of the fundraising. Almost everyone can participate in reward-based Crowdfunding campaigns as an investor. The only prerequisite is a valid payment account.

Additional Information:

Keyplayers in the reward-based Crowdfunding campaigns are Kickstarter and Indiegogo.