Crowdfunding is an alternative to traditional small-business financing that provides the means to transform a promising idea into profitable reality — without having to pay back a penny. Rewards-based crowdfunding is the most popular type of crowdfunding. What is rewards-based crowdfunding? Rewards-based, or seed, crowdfunding is a type of small-business financing in which entrepreneurs solicit financial donations... Jackie Zimmermann is a writer at NerdWallet.