Interest in crowdfunding has taken off after President Barack Obama signed the Jumpstart our Business Startups Act (JOBS) a year ago. This act legalized equity crowdfunding, subject to certain new rules still in the works.

Crowdfunding started in the US as a way to raise money for creative projects and it has expanded quickly as an alternative source for financing. Many websites now have ways for small investors to earn interest from lending money to individuals or small businesses.

Worldwide crowdfunding volumes have reached $2.66 billion in 2012. This is up from $1.47 billion in 2011, according to a survey by Massolution. Massolution predicts that $5.1 billion will be raised through crowdfunding platforms in 2013.

One of the most highly watched crowdfunded deals last year happened through Kickstarter when smartwatch maker Pebble Technology raised more than $10 million with Kickstarter. This was 100 times their target!