Crowdfunding is a financing method that involves funding a project with relatively modest contributions from a large group of individuals, rather than seeking substantial sums from a small number of investors. The funding campaign and transactions are typically conducted online through dedicated crowdfunding sites, often in conjunction with social networking sites

 

 

Step 1. Investment-based Crowdfunding:

You invest in a business and receive a stake in return (normally shares).

 

Step 2. Loan-based Crowdfunding:

You lend money to individuals or companies in return for a set interest rate. It’s also called peer- to-peer or peer-to-business lending (P2P or P2B). You can read more about loan-based crowdfunding in our guide to Peer to peer lending.

 

Step 3.  Donation-based Crowdfunding:

You donate to a person or a charity (you may be promised something in return).

 

Step 4.  Reward-based Crowdfunding:

You give money in return for a reward linked to the project or cause you’re supporting.

 

Crowdfunding Websites in India: