Knowledge base | Grouphunt

Crowdfunding 101

Crowdfunding is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.

Crowdfunding projects on Grouphunt mostly take the form of rewards-based crowdfunding, which involves individuals contributing to a business in exchange for a “reward”, typically a form of the product or service the company offers. This framework has been made a popular approach through crowdfunding platforms like Kickstarter and Indiegogo.

When we Grouphunt a Crowdfunding project, we help the community place a group pledge in support towards the project. This often results in everyone being able to pledge less for the same reward, hence saving everyone some money as opposed to if one were to pledge individually.