Crowdfunding is a finance option for startups to raise money for an idea or a product or for the entire business that is emerging and promising. It is an accepted process in which entrepreneurs ask for crowdfunding if they think that the idea is substantial and has a definitive future. Crowdfunding can be a standalone financial option or it can be coupled with traditional forms of financing like venture capital bank loans and investing. There are different types of crowdfunding available in the market for entrepreneurs to choose from. Each type has a few advantages and disadvantages and it is important that all the entrepreneurs choose the right type of crowdfunding for their businesses.