microfundering
Microfundering is a funding model that aggregates small contributions from a large number of individual backers to finance projects, ventures, or causes. It is typically carried out through online platforms that connect creators, researchers, entrepreneurs, and community initiatives with supporters. Contributions are usually modest and can range from a few euros or dollars to several hundred, depending on the project and the rewards or expectations offered.
Platforms supporting microfunding offer several funding models. In rewards-based schemes, backers receive a product, service, or
Microfunding emerged alongside the broader crowdfunding movement in the early 21st century, expanding access to capital
Benefits include democratizing access to capital, enabling rapid validation of demand, and enabling niche or local
Typical use cases include independent filmmaking, early-stage research, community improvement projects, open-source software, and disaster relief
See also: crowdfunding, microfinance, philanthropy, impact investing, crowd economy.