Crowdfunding is like when you want to do something really cool, but you don't have all the money you need to do it. So you ask a bunch of people to give you a little bit of money each, and when you add up all that money, you have enough to do the cool thing you wanted to do!
For example, let's say you want to make a new toy. You don't have enough money to make it all by yourself, so you ask your friends and family to give you some money to help make the toy. People can give as little or as much as they want, and in return, you might promise to give them the toy when it's ready or give them some other special prize.
Crowdfunding is a way for regular people like you and me to help each other make things happen. Sometimes people use crowdfunding to make movies, make music albums, or even to start their own businesses. And lots of times, people who give money to crowdfunded projects get to be a part of something really cool and exciting that they helped make happen!