Crowdfunding is an innovative financial model that is independent of the formal financial system because of the way in which it raises funds from the public for project financing. In the early days, crowdfunding was carried out via printed material. With the popularization of the Internet, financing via crowdfunding broke through local geographical restrictions by using new forms of financial technology. Crowdfunding can be divided into four categories of public participation: donation-based, pre-sales or reward-based, debt-based and equity-based. This paper reviews the history of crowdfunding, introduces several representative crowdfunding websites, and looks at problems and risks in the crowdfunding industry. As an innovative financial model, crowdfunding is conducive to guiding non-governmental financing, promoting the formation of a multi-level capital market and contributing to the innovation of national financial and regulatory systems. Thanks to the development of science and technology, distributed production is no longer limited to large enterprises and more innovative start-ups and small and medium-sized enterprises can gain access to capital through crowdfunding platforms. Crowdfunding is also likely to become more specialized and regional over time, and this can promote the development of regional economies and improve local employment environments.
