What is crowdfunding?
Crowdfunding is the process of funding a project or venture by raising money from a large number of people who each contribute a relatively small amount, typically via internet. Hence, the term refers to Internet-mediated registries. Musicians, filmmakers, and artists have successfully raised funds and fostered awareness through crowdfunding. There are more than 600 different crowdfunding platforms that make it easy for entrepreneurs, investors and people to connect. In 2015, over US$34 billion were raised worldwide by crowdfunding. Crowdfunding depends on individuals supporting a cause, business or project.
The modern crowdfunding model is generally based on three types of actors - the project initiator who proposes the idea or project to be funded, individuals or groups who support the idea, and a moderating platform that brings parties together to launch the idea. For personal crowdfunding, people hope that it will fund life-saving medical processes, help them raise money for a charity. Ketto is the first donation-based peer-to-peer crowdfunding platform in India with a network of over 5.5 million donors who have funded around 200,000 online fundraisers. Ketto is responsible for raising over ₹11billion (approximately $80 million) in online transactions since its debut in 2012.
Crowdfunding use has also been criticised for funding quackery, especially costly and fraudulent cancer treatments.