Absolutely true. Crowdfunding is but one platform for this purpose. There is also Kickstarter and IndieGoGo. To date, Kickstarter alone has raised more than $350 million on 30,000 projects.
The entire process is legal. Has been set up under the JOBS Act as an exemption under the Securities Act of 1933. There are rules for investors whose annual income is less than $100,000, and for those above either $100,000 in annual income or a net worth in excess of $100,000, they can invest up to 10%.
To abandon these funding rules, an investment of $2000, or less, requires that no net worth or annual income information be filed.
A Funding Portal is required to raise the money. These are independent gatekeepers for crowd funding offerings, who are act as an independent gate keeper for these offerings. There is other research and investigative work that the funding portal must do to approve the offering.
Should you wish to go forward it is recommended that you obtain the services of a law specialist specializing in securities work.
If you are an investor, you are required to conduct your own independent investigation concerning the integrity of the players and the soundness of their business.
If you are a raising the capital, you should furnish solid business information, including total background of the primary parties in the company, together with a budget as to the ways and means money raised will be used.
-JS
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