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What is crowdfunding?

Christina Hernandez Sherwood, eMed Editor, MedCity News

What is crowdfunding?

Crowdfunding lets entrepreneurs present their ideas to a large number of potential investors who can help startups reach their funding goals. The idea is for crowds to throw their support behind a particular project, driving consensus. Since a provision in the JOBS Act allows startups to raise up to $1 million through crowdfunding, the technique is attractive to entrepreneurs.

Kickstarter is perhaps the best known crowdfunding platform. Others include Innovocracy, Experiment, RocketHub, and RockThePost.

Photo by LendingMemo

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