# Crowdfunding: what it is and how it works · Zorraquino
> Crowdfunding finances an initiative through contributions from multiple people, usually organised through a platform.
URL: https://www.zorraquino.com/en/dictionary/internet/crowdfunding.html

# Crowdfunding

Crowdfunding finances an initiative through contributions from multiple people, usually organised through a platform. It can take the form of donations, rewards, loans or equity participation

What it means, how it is used and where it comes up, with its related concepts.

[The whole glossary](https://www.zorraquino.com/en/dictionary)

## What it is and how it works

A campaign provides evidence of interest under particular conditions, but does not establish general demand or the initiative's viability on its own. Obligations differ by model: delivering a reward and repaying a loan are different commitments. Clear communication about the project includes explaining what contributors receive and what uncertainties remain.

Also known as

crowd financing

Topics

[Technology and data](https://www.zorraquino.com/en/dictionary/category/tecnologia-y-datos)

## Related concepts

- [Equity crowdfunding](https://www.zorraquino.com/en/dictionary/digital-marketing/crowdequity.html)
- [Crowdsourcing](https://www.zorraquino.com/en/dictionary/digital-marketing/crowdsourcing.html)
- [Start-up](https://www.zorraquino.com/en/dictionary/internet/startup.html)