Although similar concepts can also be executed through mail-order subscriptions, benefit events, and other methods, the term crowdfunding refers to Internet-mediated registries.[4] This modern crowdfunding model is generally based on three types of actors - the project initiator who proposes the idea or project to be funded, individuals or groups who support the idea, and a moderating organization (the "platform" that brings the parties together to launch the idea.[5]

Crowdfunding has been used to fund a wide range of for-profit, entrepreneurial ventures such as artistic and creative projects,[6] medical expenses,