Crowdfunding has transformed the way entrepreneurs raise capital and the way investors get involved in start-up businesses.
Over 12 million backers have flocked to support projects on Kickstarter, a popular crowdfunding website, pledging over $US2 billion in funding for over 100,000 projects, ranging from the Pebble Smartwatch to the movie Veronica Mars.
Platforms like these provide a form of reward crowdfunding, where project owners pre-sell their products to early customers.
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