BizSugar.com › Raising Capital › The Crowdfunding Breakdown!

Crowdfunding is a social media driven marketing mechanism that uses the collective efforts of people to market and fund projects or businesses by creating an online community of people that combine their resources to support and grow projects and businesses. This concept was embodied in the 2012 re-election campaign of President Obama. The campaign was a pure crowdfunding play where about half of the President’s $1 billion in donations came from crowdfunding. This demonstrates the power of how small amounts of funding from large groups of people can translate into substantial amounts of funding.