Crowdfunding is an alternative form of financing that relies on small donations from a large number of individuals rather than from traditional investors. The document discusses different types of crowdfunding models like community shares, social impact bonds, and loan stock that can be used to raise money for various purposes like dealing with business failure, validation, set-up costs, or working capital. It also considers whether crowdfunding is right for different projects based on factors like the story, reach, offer, and ability to leverage ambassadors. While crowdfunding is widely known, few utilize it currently due to a lack of skills and knowledge in how to implement a successful crowdfunding campaign.