Crowdfunding is a way of raising money to finance projects and businesses. It allows fundraisers to collect money from a large number of people through online platforms. Crowdfunding is mostly used by start-ups or expanding businesses as a way of accessing finance alternative. It is an innovative way to find funding for new projects, businesses or ideas. It can also be a way to rally a community around your offering. Thanks to the strength of the online community you can also gain useful market knowledge and reach new customers. Crowdfunding platforms are websites that allow interaction between fundraisers and a wide audience. Through the crowdfunding platform it is possible to express and collect financial commitments. Many platforms operate according to a maximalist (all or nothing) model. This means that if you reach yours goal you receive the money, otherwise everyone gets their money back, without worries and without financial losses. There are different types of crowdfunding which we will explain in the following text. This text gives you unbiased advice to help you understand how the most common types of crowdfunding used by SMEs and for-profit start-ups work.