Word of the Week:
Crowdfunding

Definition: Crowdfunding is a way for people or businesses to raise money online from donors around the world. There are four types—donations, loans, equity, and rewards—each of which has its own pros and cons. Some businesses prefer crowdfunding over traditional loans or investments because it can make raising money easier, may pose less risk, and could give the company more room to innovate.

Key Takeaway: Crowdfunding can be used to solicit charitable donations or funds to get a new business off the ground.

Fun Fact: Female-led crowdfunding campaigns tend to raise more money than those backed by men, possibly because women are seen as more trustworthy.