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Crowdfunding is a way to raise capital for a company or a project. It usually happens through services such as Kickstarter or FundedByMe. There are primarily two types of Crowdfunding: 1. Rewards or 2. Equity based.
The latter means that a company can obtain equity or that loans can be given to a business. The former refers to receiving a reward for financing. For example, testing the product before others do, meeting entrepreneurs or the like.
