crowdfunding

American  

[kroud-fuhn-ding] / ˈkraʊdˌfʌn dɪŋ /

Or crowd-funding

noun

1. the activity or process of raising money from a large number of people, typically through a website, as for a project or small business.

---

Other Word Forms

• crowdfund
  verb (used with or without object)
• crowdfunded
  adjective

Etymology

Origin of crowdfunding

First recorded in 2005–10; crowd ¹ + fund + -ing ¹

Explanation

Crowdfunding is raising money online for a business or project. Most successful crowdfunding ventures get donations from a large number of people. If you've always wanted to open a bookstore but don't have the money to buy books and rent a space, you could try crowdfunding. Online platforms allow would-be entrepreneurs to describe their business ideas and invite people to donate. Crowdfunding is used to raise money for art projects, travel, and medical expenses that aren't covered by insurance. The term dates from around 2010, coined from crowd, "large group of people," and fund, "supply with money."

Example Sentences

"Crowdfunding does expand access to the market, but it's just not as democratic as it seems," Maciel said.

From Science Daily • Oct. 24, 2023

Crowdfunding among the faith community has become a specialty for Angel Studios and a way to reach target audiences most likely to support new releases and buy tickets for a finished product.

From Washington Times • Aug. 16, 2023

Image: Mobile Pixels A note on crowdfunding: Crowdfunding is a chaotic field by nature: companies looking for funding tend to make big promises.

From The Verge • Aug. 16, 2022

Crowdfunding war is not new to Ukraine, which used private donors to pay for military equipment after Russia seized Crimea in 2014.

From Washington Post • Mar. 3, 2022

Crowdfunding platforms are becoming more proactive in working with fundraisers to verify their identities and their intentions for money that they receive.

From Seattle Times • Nov. 8, 2021