Top 10 Crowdfunding Platforms

Crowdfunding Platforms

The usage of internet crowdfunding sites has made obtaining money for your business concept, charitable cause, or personal needs easier in the digital age. With simple tools that make it easy for both fundraisers and their supporters, people have raised more than $34 billion to date utilizing these platforms. There is a crowdfunding website for you, no matter why you need to raise money.

We investigated and evaluated the main crowdfunding platforms to assist you in getting started. To help you start, we have here 10 crowdfunding platforms you should try out to start raising some money for your cause. We have the list for you from the least to the best.

10. StartEngine (Perfect For Investing)

A network of more than 760,000 potential investors can be found on StartEngine, another equity crowdfunding website.

StartEngine permits fundraising through Regulation Crowdfunding, an exception to SEC rules that permits businesses to raise $5 million, to make investments available to the general public. Even if this procedure is quicker than more conventional ones for getting money from accredited investors, it has stringent fiscal and legal criteria.

Thankfully, StartEngine offers the financial analysis and legal paperwork required to start a Reg CF campaign. However, compared to other crowdfunding platforms, it has a hefty upfront cost, and for businesses aiming to raise more than $5M, that cost may even be greater.

When you’re ready to invest, just click the “Invest Now” button to get started by entering your contact information and preferred payment method. If you are a startup looking for funding, the platform’s network of more than 760,000 members has assisted 500 startups in raising money.

Pros of StartEngine

• $500 million in revenue
• Kevin O’Leary, a host of “Shark Tank” on ABC, serves as the business’s strategic advisor.

Cons of StartEngine

• It’s relatively for new companies

Fees

Financial assessment and legal documentation for Regulation Crowdfunding costs between $4000 and $10000.

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9. SeedInvest (Good for New Companies)

On the equity crowdfunding website SeedInvest, contributors are treated more like investors than fans. This implies that once investors invest, they become proprietors of your business. The first platform for crowdsourcing to accept investments from common people who don’t meet the criteria for accredited investors is SeedInvest.

Since its launch in 2012, SeedInvest has assisted more than 235 businesses in raising money and has amassed a network of more than 500,000 investors. The majority of profitable ads on the platform are for tech and e-commerce companies.

You must create an account if you wish to raise money on SeedInvest. This entails completing an application and a screening procedure so that the platform can perform its due diligence. If you’re approved, you can build a profile on SeedInvest and start raising money.

Pros of SeedInvest

• Over 620, 000 investors
• Helps venture capital firms and angel investors become more informed
• If your fundraising is unsuccessful, there are no fees due

Cons of SeedInvest

• Not every startup is selected when they apply

Fees

Depending on how much you fund through the platform, includes a 7.5% placement charge and a 5% convertible note or equity fee.

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8. Mightycause (Non-profits)

To assist nonprofit organizations and individuals in generating money online for their causes, Mightycause was established in 2006. Given that it has assisted more than 150,000 charities in generating the funds necessary to achieve their objectives, it has the advantage in this category for groups looking for donations due to its versatility in fundraising.

The website provides a variety of initiatives, including giving days and peer-to-peer fundraising. The processing fee charged by Mightycause is typically 1.2% of the funds you generate through the platform plus 29 cents for every transaction.

Pros of Mightycause

• You can get a demo by requesting one.
• Available social media integrations
• Possibility of setting up annual fundraising events, unique occasions, giving days, and crowdfunding campaign

Cons of Mightycause

• The commercial version of the software includes CRM interfaces

Fees

$59 per month, excluding charges for payment processing.

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7. Crowdcube (Best for the UK and those in Europe)

When compared to the majority of the crowdfunding websites on our list, Crowdcube is a UK-based equity crowdfunding platform.

Although there aren’t many campaigns on Crowdcube, those that are accepted and meet their fundraising targets there can join the company’s Funded Club and receive special privileges from its partner organizations.

You can publicize your proposal to attract investors from your network or the established Crowdcube community.

Pros of Crowdcube

• It makes investment easy
• It’s a good way to help out small businesses
• Crowdcube allows for some tax benefits

Cons of Crowdcube

• Instead of charging fees at the time of exit, Crowdcube charges investors at the time of investment.
• Investing in early-stage companies is inherently hazardous, and returns are not guaranteed.

Fees

Suppose you reach your supposed objective, 7% of the money raised plus a 0.75 to 1.25 per cent completion fee. Processing costs change.

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6. Fundable

One of the leading crowdfunding platforms, Fundable is a component of the Startups.co platform and enables startups (now registered solely in the US) to exchange prizes or ownership for money.

On average, firms that offer rewards generate less money overall (under $50,000) but attract more supporters than those that employ equity crowdfunding, which often raises more money from fewer investors.

However, to be successful with equity crowdfunding, you must have at least as many of the components that accredited investors looking for: a history of expansion, a strong business strategy, and a pitch deck.

Pros of Fundable

• Crowdfunding for incentives and equity are both options.
• Low costs for effective advertising
• It has an excellent client service
• Campaign prescreening is advantageous to backers.

Cons of Fundable

• Unsuccessful campaigners suffer from a flat monthly price.
• If your financing target is not met, you receive no money (just for rewards campaigns)
• Campaigns must be approved after being prescreened.

Fees

During active campaigns, $179 per month as opposed to a proportion of overall money raised (this does not include the fees for payment processing).

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5. GoFundMe (For Personal Funding)

GoFundMe is a free crowdfunding platform created largely to raise money for individuals, charity causes, and community projects, in contrast to the majority of the other crowdfunding sites on our list that are intended to fund creative ideas and early-stage enterprises.

Since anyone may start a campaign on GoFundMe, which is best suited for personal fundraising, backers on the platform typically only support projects that originate from their networks and communities or issues they are already familiar with.

Unlike the other crowdfunding websites on this list, GoFundMe isn’t intended for commercial initiatives. However, you can try using GoFundMe to solicit help from your network if you’re a small business owner who has run into financial trouble or you need to raise money to deal with a personal crisis.

Pros of GoFundMe

• Platform fee: 0%
• Flexibility in organizing fundraisers for oneself, a friend, or a cause
• 24/7 specialized assistance is offered

Cons of GoFundMe

• There are credit and debit transaction fees

Fees

Initiated personal and charitable campaigns in US dollars are exempt from platform fees. Debit and credit card transaction fees are 2.9%, plus $0.30 for donations.

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4. Crowdfunder

With the help of Crowdfunder, you can convert a product page on your website into a crowdfunding page with a progress bar, establishing your goal based on a predetermined minimum amount of merchandise sold or funds raised.

The simplest type of crowdsourcing is made possible by Crowdfunder: taking pre-orders from customers to simultaneously verify an idea and finance production. Additionally, you can choose a monthly price instead of the commissions levied by third-party platforms for a more dependable cost.

It can be used to introduce limited-edition products, test out new product concepts, or raise money for a good cause.

Pros of Crowdfunder

• You don’t need a lot of money to start
• It is possible to earn above-average returns
• The funding with this account is transparent

Cons of Crowdfunder

• Crowdfunding can take a long period

Fees

$24 per month

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3. Patreon (Best for Creative Professionals)

One of the most distinctive crowdfunding platforms on this list is Patreon, which has an emphasis on the new generation of creators, including bloggers, YouTubers, podcasters, cartoonists, etc.

Patreon was designed for creators and internet celebrities with devoted fans to generate recurring money through paid subscriptions, unlike many of the leading crowdfunding platforms that encourage short-term campaigns. Patrons can choose to pay monthly for exclusive community benefits or per creation to encourage you to produce more.

Based on various donation tiers, Patreon producers provide a variety of exclusive benefits, including exclusive content, branded merchandise, sneak peeks, shoutouts, and more. It might be worthwhile to set up a Patreon page if you’re a creative who regularly releases new work and has a sizable online fan base.

Pros of Patreon

• There’s a monthly subscription
• There is software that you can integrate into it like Mailchimp.

Cons of Patreon

• You need to post regularly
• Fees vary

Fees

Depending on your Patreon pricing strategy, between 5% and 12% of your monthly income.

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2. Indiegogo (2nd Best Overall)

A strong platform for crowdfunding, Indiegogo helps charities, startups, and companies. Although it may at first seem similar to Kickstarter, it has its own set of user-friendly features and campaign possibilities.

The choice between a fixed funding goal (all or nothing, like Kickstarter) and a flexible funding goal for your campaign is the most notable distinction. With flexible financing goals, you get your money whether or not you reach your objective by the deadline.

When you can keep your promise to backers even if you don’t raise enough money, such as when you’re introducing a new product line for an existing company, the flexible funding option is extremely helpful.

Additionally, Indiegogo InDemand enables you to continue soliciting funds while in the production phase or preparing to fulfil orders, even after your fundraising campaign has ended. Regardless of whether you conduct your campaign on Indiegogo or another fundraising website, InDemand is available to you.

Pros of Indiegogo

• Good for entrepreneurs and even investors
• It can be used for even large projects

Cons of Indiegogo

• Charges a 3rd-party payment processing fee in addition to a platform fee of 5%

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1. Kickstarter (Best overall/Top Choice)

When it comes to finding funds for creative projects, Kickstarter is by far the most well-known fundraising site. The Kickstarter community has assisted over 200,000 projects in raising $5.9 billion since the site’s introduction in 2009, including those for tangible goods, motion pictures, video games, and more.

Kickstarter is a platform for fundraising with incentives. To encourage support for a project, backers are given perks like t-shirts, shoutouts, or exclusive pre-order pricing. You can also provide incentives in several tiers. The higher incentives that backers unlock depend on how much money they commit.

Since Kickstarter projects are all-or-nothing, you can only access your funds (and pay the platform fee) if you reach your first funding target. If you fall short, your funders keep the entire sum. As a result, Kickstarter projects frequently have a high level of quality and novelty and are frequently sufficiently inventive or imaginative to garner interest from early adopters and media coverage.

Pros of Kickstarter

• Your campaign can generate a lot of attention for free
• It’s free till you can meet your goal
• It has a good interface.

Cons of Kickstarter

• You will pay a fee after your campaign is complete
• Kickstarter has certain needs that you must reach

Fees

If you reach your objective, there will be a 5% platform charge added to the 3%–5% payment transaction fees (US).

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Conclusion

Once you need crowdfunding, these are some websites that you can use to fund yourself or your business. For you to reach your fundraising targets, a little bit of luck and pre-launch marketing strategies are required. Pitch your campaign in the right manner to the appropriate people if you want to raise awareness of your idea and persuade others that it is, in fact, worthwhile supporting.