Crowdfunding - funding a venture or project by raising monetary contributions from a large number of people.
There are 2 primary types of crowdfunding:
- Rewards Crowdfunding - this is where an inventor, designer, entrepreneur presells a service or product without incurring any debt or sacrificing equity
- Equity Crowdfunding - backers receive shares in the company in exchange for money pledged
Source: "Crowdfunding" from Wikipedia