Crowdfunding or micromecenazgo, is a type of collective financing in which a group of people finances initiatives of other people, organizations or companies.

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In crowdfunding, capital contributions are usually small amounts but in large numbers. Hence the name crowdfunding which comes from the term “crowd” (multitude) and funding (financing).

The process that crowdfunding follows is simple:

1. It starts with a project that a certain person or organization proposes.
2. It continues with some small investors who finance it
3. It ends when the project becomes a reality and small investors can benefit from it.

The possibility of creating crowdfunding platforms on the Internet has greatly facilitated the emergence of this type of financing that without the Internet was practically impossible.

Online payment technologies and social networks have also greatly helped its diffusion and viability.

We hope this information is very useful to you.