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What is crowdfunding?

Crowdfunding is an alternative source of financing that attracts funding to business activities of different sizes and purposes by attracting a large number of investors (the crowd) making moderate investments. The provision of crowdfunding services generally involves three types of actors: the project owner that proposes the project to be funded, investors who fund the proposed project, and a crowdfunding service provider that, without taking on own risk, provides intermediation services that bring together project owners and prospective investors through an online platform.

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