Crowdfunding: The way of raising funds for new projects by asking a large number of people via the Web is called crowdfunding. It is also called crowdfinancing (Turban, Volonino, Wood, 2013). “Crowdfunding is a new Internet-based method of raising capital by accepting small sums of money from individuals” (Valancience, Loreta, jegeleviciute, & sima, 2013). Even though crowdfunding has been around for about 10 years as a digital concept, it didn't have much effect until 2008 (May, Jonathan, 2013). This article covers the types of crowdfunding platforms, how does crowdfunding work? , The state of crowdfunding in the United States and abroad, Strengths and weaknesses of crowdfunding. There are different types of crowdfunding platforms. This article includes the four most used crowdfunding platforms (Colgren, David, 2014). Donation-based crowdfunding, here people donate money to help a cause but get nothing in return. Reward-based crowdfunding, here people receive a reward in exchange for the money they pledge. Credit-based crowdfunding, where people lend money to a business or organization in exchange for an interest rate. Equity-based crowdfunding, here people receive an equal investment in exchange for the money promised. Crowdfunding is not only the way of connecting entrepreneurs and supporters, but also gives a chance to ordinary people to invest a small amount of money and mainly works by using the Internet which is a high priority for most people to interact with the world real (Valanciene, Loreta, Jegeleviciute, Simha, 2013, p 39-48). Crowdfunding works on the basis of collaboration between investors, intermediaries and entrepreneurs. Here, investors are ordinary people who invest for ideas they find promising... middle of paper ......kie,ip,uid&db=buh&AN=95445350&site=ehost-liveMay, Jonathan(2013) Financial Management. Retrieved from: http://www.nwmissouri.edu/Library/IPChecking.asp?http://search.ebscohost.com/login.aspx?direct=true&AuthType=cookie,ip,uid&db=buh&AN=91860809&site=ehost-live Lev-Ram, M.Wagner, Kurt (2013) Luck. Retrieved from: http://www.nwmissouri.edu/Library/IPChecking.asp?http://search.ebscohost.com/login.aspx?direct=true&AuthType=cookie,ip,uid&db=buh&AN=87589663&site=ehost-live Turban, Volonino and Wood (2013) Information Technology for Management: Advancing Sustainable, Profitable Business Growth (Ninth Edition, pp. 86-88) Valanciene, L. Jegeleviciute, Sima (2013) Economics and Management. Retrieved from http://ezproxy.nwmissouri.edu:2067/Library/IPChecking.asp?http://ezproxy.nwmissouri.edu:2057/login.aspx?direct=true&AuthType=cookie,ip,uid&db=buh&AN=95278200&site = ehost-live