As we have noted before, crowdfunding has become a major online investment source for entrepreneurs and start-up companies.

Reporting for Fortune, Michal Lev-Ram and Kurt Wagner note that: “Welcome to the new world of fundraising, in which so-called crowdfunding Web sites like Indiegogo and Kickstarter let just about anyone with an idea try his or her hand at bankrolling a dream. Proponents of crowdfunding believe it has the potential to upend traditional financing models, such as loans and venture capital, and unleash a tidal wave of capital for entrepreneurs, creative types, and, yes, cheesemongers. Reliable estimates of the industry’s size are hard to come by, but one research outlet, Massolution, predicts some $5 billion will be raised through crowdfunding this year, up from $2.7 billion in 2012.”

Click the image to read a lot more from Lev-Ram and Wagner. And click here for a video.


Illustration by Alex Nabaum


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