Among the many things that the internet has made possible is what experts call “many-to-many” communication – that is, sites where a large number of individuals can individually and collectively communicate directly with a large number of other individuals. This innovation is what underlies the idea of crowdfunding.

For those of you who aren’t aware of it, crowdfunding is a sexy idea that has gained prominence and popularity over the last few years. In its original form, crowdfunding involves sites where seekers of funding – micro-businesses, charities, or individual artists and writers with a project in mind – post descriptions of and information about their projects/plans/business models. People with money to invest or donate browse these posts, and pick ones that they find appealing to fund, usually with relatively small amounts of money. The idea is that by aggregating lots of small contributions, big sums can be raised to fund worthy ventures.

To read the original article: Crowdfunding: Hot or not? - The Burning Question | Moneyweb