Definition
Crowdfunding is the method of raising capital from a large number of people via online platforms. It changes how a round is priced, who owns what, or whether an investor leans in. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
In a Monday review, someone writes Crowdfunding on the board and restates it: “Method of raising capital from a large number of people via online platforms.” The next move is a test, a cut, or a double-down — not another debate about the word.
Common mistake
Using Crowdfunding as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Anti-dilution provision
Clause protecting investors from equity value reduction in future funding rounds.
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Convertible note
A short-term loan that converts into equity at a later priced round.
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Crowdsourced equity funding (CEF)
Form of crowdfunding where investors receive equity in the company.
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Earnings per share (EPS) dilution
Reduction in EPS caused by issuing additional shares of stock.
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