Business Pitch Dictionary by pitch.dog
Funding instruments & exemptions · Core

Crowdfunding

Also called: crowd funding

ELI5

Many people each contribute or invest a smaller amount.

Used in conversation

“Specify whether the crowdfunding is reward, debt or equity based.”

Definition

Raising money from many people, through donations, rewards, debt or equity depending on the structure.

Here “Crowdfunding” means: Raising money from many people, through donations, rewards, debt or equity depending on the structure.

Pitch context

You will see “Crowdfunding” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches funding instruments & exemptions.

Why it matters: In funding instruments & exemptions, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.