Rewards-Based Crowdfunding

Funds raised for projects are provided by a community of donors who receive some sort of reward in return for their contribution. In most cases, these rewards are the product or service the entrepreneur plans to create. For example, an entrepreneur may want to create a new video game but doesn’t have the funding. So, he or she asks others to essentially pre-buy the game, thus providing the entrepreneur with the funding needed. Once the game is completed, donors can receive a copy of it. 

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