Financing technique, used mainly by start ups, which tap thousands of people via the Internet for funds needed to start up their projects. The unit amounts contributed are small, usually a few hundred euros, but multiplied by thousands or tens of thousands of people, a company is able to get its hands on tens or hundreds of thousands of euros, which will enable it to launch or to test its concept/product/service, and then in a second phase to approach Venture capital firms and/or Business angels. Crowdfunding is a complement to or substitute for financing by an entrepreneur’s friends and family ("Love money")

For more details see Chapter 40 Setting up a company or financing start-ups of the Vernimme

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