The rise of crowdfunding sites has been a Godsend for many people trying to secure funding for their next project. You no longer need to pitch hundreds of investors or people you meet on the street. Now, all you need to do is upload your project to one of the crowdfunding sites and share it with the world.
If they like the idea you can earn hundreds of thousands or even millions of dollars. Crowdfunding sites are different based on what your goals are, use this list to choose the one that will serve your needs the most.
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Kickstarter is one of the most popular crowdfunding sites and has launched companies like Pebble into the stratosphere. With that being said, it’s only suited to creative projects so if you’re looking to crowdfund a more traditional business then this platform isn’t for you.
Indiegogo is a huge platform present in over 196 different countries and has helped fund over 100,000 projects to date. They have an 8% campaign success rate and you pay fees of 4% to the platform if you’re fully funded. This site caters to artistic projects such as movies, music, and well art. They want to get into the equity crowdfunding space soon which will put them up against some big players in finance.
With RocketHub you can fund anything for any purpose, they really don’t care. Unlike with other sites, you keep all the money your raise even if you don’t get to your goal. They have a unique partnership with the A&E network so that campaigns which meet their requirements can be featured in their magazine. Their fee is 4% if you reach your goal and 8% if you fall short of it, remember, you get paid no matter what.
GoFundMe was created in 2010 and has been fundamental for millions of people looking to raise funds for their projects. It has a leaning towards nonprofits, but can still be used for other projects and causes. It’s another platform that allows you to withdraw funds whether or not you’ve been able to meet your fundraising goals. They only charge a 5% fee for donations and after that they’ll wire the funds directly to your bank account.
If you have a non profit project that you’d like to gt off the ground then Razoo is the perfect crowdsourcing platform for you. Their fees are 4.9% plus credit card transactions for every donation that you amass for your campaign. You can set up tiers in your campaigns to let donators know exactly how much their contribution is impacting your cause.
Crowdrise isn’t actually for business, but you can use it to raise money for ANY cause. If you want to throw the best birthday party in the word then feel free to set up your campaign. With this kind of freedom, the types of campaigns you’ll see vary considerably. The fees vary from 3-5%, but with personal causes such as medical or travel you’ll usually see less than 1% and the fee can be paid by the donor for you.
I think the title of the website says it all, PledgeMusic is a personal crowdfunding site to get your next album funded so you can create and distribute it like a boss. The site is divided into a series of different genres like rock, jazz, and country. The thing is, you don’t have to be making an album, you can also rais funds for tours, promotional materials, and other things like that.
MicroVentures is an equity crowdfunding site that’s been responsible for transactions amounting to over $3 billion since 2009. There’s a vetting process for both the startup and the investor to make sure projects are viable and the investors are real. Only 5% of companies that apply are approved so make sure you go in with you’re a game. It’s an powerful solution for your early stage funding needs.
FundersClub connects you directly with the investors that can help make your dream a reality. They have a group of investor looking to diversify their portfolio with smaller investments that normal ($3,000 as opposed to 10-25,000) at a go. In total, you should be looking to raise 200-500k at a go and they keep 10% as their fees.
CircleUp is another equity crowdfunding website that connects you directly with investors. Their focus is on companies that are targeting consumer markets with their goods and services. Each backer pledges up $1,000 or more and over the course of 60-90 days you can easily raise hundreds of thousands of dollars. CircleUp itself will match the amount pledged to your company. Because it’s equity crowdfunding, you’ll need to go through a vetting process before you’re approved.
Crowdfunder is what you’re probably looking for. It allows early stage startups and more mature businesses that qualify to participate in equity based crowdfunding. It’s not free to join like the other sites on this list, but you can make an unlimited number of fundraisers and pitch them to their network of over 100,000 accredited investors. Because of it’s nature, you need to submit a few legal documents along with your application in order to be approved.
AngelList is a platform that allows you to share your startup with thousands of investors around the world. It works like a social media network in a few ways. It has a feed that shows potential startups to investors and if they like yours it may be a recipe for success. Every now and again, a newsletter is sent out to highlight promising startups for the entire community.
Invested.in is a crowdfunding platform that gives you a lot of options, allows third party integrations, and allows you to choose between all-or-nothing and keep-what-you-raise campaigns. Invested.in is a great platform that gives you freedom to run your campaigns however you choose.
Quirky is a platform for inventors, if you’re an entrepreneur that like inventing things then this may be the best crowdfunding platform for you. They’ve helped companies raise millions of dollars and are still going strong. The vetting process is intense as only 15 or so inventions make it through every week out of a pool of over 2000. If you think yours has what it takes then apply and cross your fingers.