as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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explain how entrepreneurs utilize crowdfunding.
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entrepreneurs utilize crowdfunding by using online platforms to raise money for their projects or businesses. they create campaigns on crowdfunding sites such as kickstarter or indiegogo to promote their ideas, share their stories, and collect pledges from investors. crowdfunding campaigns are typically open-ended, meaning they may continue to raise funds until they reach their goal or their deadline. once a crowdfunding campaign is successful, rewards or equity can be offered as a way of thanking the investors. in many cases, the funds raised via crowdfunding can also be used to launch and promote the entrepreneur’s product or service.
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