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How does crowdfunding work?

2 July 2014 Last updated at 20:55 BST

New figures from the Bank of England show it can still be a struggle for small businesses to get money from the banks.

This is why many are turning to what is called - crowdfunding - asking people to invest money in businesses or projects.

More than nine million investments and donations were made last year in this way.

Emma Simpson reports.

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