Crowdfunding sites have become popular with those looking to raise money for various causes. There are options for charitable giving, specific initiatives, and startups. If you want to raise money for your business, here’s a guide to finding the best crowdfunding sites for your needs.
What is Crowdfunding?
Crowdfunding is a way to raise funds by soliciting small donations from a large crowd of people. Crowdfunding sites allow businesses and individuals to post their campaigns and creative projects online, where visitors can easily donate.
- READ MORE: What is Crowdfunding?
Is a Crowdfunding Site a Good Way to Raise Money?
A crowdfunding campaign can be a powerful way for certain businesses to raise money. It’s ideal for those who provide value to a wide base of potential customers. If you provide something people can’t get anywhere else, they’ll be more likely to donate. It’s also important to make sure you can deliver on promises made on your crowdfunding platform if you raise the funding goal. For example, many businesses promise products or gifts to donors. So go over your numbers carefully to make sure it makes sense.
How Do You Choose the Best Crowdfunding Platform?
Once you’ve decided to try crowdfunding, it’s important to consider what fundraising platform best suits your goals. These tips can help:
- Consider your crowdfunding goals: What are you hoping to fund with these sites? Some have specific requirements, like funding for specific projects or charitable initiatives. Others are more general.
- Create financial projections: Consider how much you want to raise, and calculate all relevant costs like platform fees and payment processing fees to see what platforms will net you the most money.
- Find a platform that’s popular with your target audience: Crowdfunding sites don’t just facilitate donations; some also help campaigns get discovered. Increase traffic by choosing sites that are popular with likely donors.
- Determine if you want to go all or nothing: Many sites in the crowdfunding space allow you to keep whatever money is raised. Others have an all-or-nothing model, where you only get paid if your goal is met. If you cannot move forward without a specific amount earned, this model may work for you.
- Compare features: Other features to consider include the ability to offer gifts, space for adding media to explain your project or startup, and integrations with social platforms.
- READ MORE: What is Go Fund Me?
Best Crowdfunding Sites
If you’re looking for crowdfunding platforms to launch your business or creative projects, here are some of the best crowdfunding sites to consider.
Kickstarter is one of the biggest names in the crowdfunding space. It’s mainly for creative projects, from comics to music. And you must run a successful campaign to receive funds.
Indiegogo connects small businesses with early adopters. It’s ideal for innovative projects and companies that solve a specific need. In addition to crowdfunding, they also connect companies with experts for things like prototyping and marketing.
GoFundMe is among the best crowdfunding sites for individuals. But it may also apply to businesses, especially those looking for general community support. This may be the best crowdfunding site for charitable initiatives or social causes.
Fundable offers a crowdfunding platform specifically for businesses. There are several models to choose from based on your company’s goals. It’s also popular with potential investors.
Fundly is a fundraising page for individuals and nonprofits. So it’s not ideal for general business crowdfunding. However, it may be relevant for certain initiatives with a social angle, or business owners raising money for personal causes. Raising funds for charity may also help businesses build a community and gain interaction online. However, you’ll need to find a separate platform to fund startup-related projects.
Kiva is a microloans provider focused on developing markets. But it also provides a crowdfunding site with both private and public fundraising periods. This differs from other crowdfunding websites in that you’re actually funding a loan rather than a gift. If approved, your business goes through a private fundraising campaign where you raise funds from your own connections and followers. This proves your character and general belief in your idea. Then there’s a public period where Kiva shares your loan with their entire lending community.
Patreon is a platform that allows creative business owners to raise money through memberships. For example, a content creator may offer exclusive content just for paid subscribers. It’s not strictly fundraising but does allow businesses to raise money from multiple donors.
Equity Crowdfunding Websites
Equity funding sites let investors provide funding for early startups and projects in exchange for a small share of the company. This is like buying stocks, but for smaller companies that are not publicly traded. Here are the top options in this niche.
SeedInvest is an equity crowdfunding site that connects visionary startups with angel investors. The site curates campaigns to appeal to relevant investors.
EquityNet is a marketplace for private investor deals. They screen users to connect businesses with accredited investors.
Wefunder is an equity fundraising site with a low investor limit. Many of these sites target large venture capital firms. But you only need $100 to invest on Wefunder, expanding the range of potential donors.
Niche Crowdfunding Platform Options
There are also crowdfunding websites that cater to specific industries or project types. If you want to reach niche audiences, consider the options below for your fundraising efforts.
11. Seed & Spark
Seed & Spark is one of the best crowdfunding platforms for filmmakers and storytellers. It focuses on new creators, important stories, and diverse voices. Not only does the platform allow creators to raise capital for projects, but it can also help you build an audience of interested viewers.
Experiment is a crowdfunding page for scientific research. Labs and companies in the science field can share their ideas and goals on the site and focus on raising funds from individuals rather than large grants. Once projects are funded, you can also share your progress and results with interested parties on the site. Topics range from mathematics and social science to ecology and medicine.
CrowdStreet offers a unique model for crowdfunding property investments. It’s not a crowdfunding platform in the sense many businesses are used to, where you simply get money from many sources for a project. However, it does allow real estate investors to come together to purchase properties. It’s a similar concept to REIT investing, but where all parties own a larger share of specific properties, instead of a whole portfolio of investments.
Unbound is a crowdfunding site for books. Authors can easily post their projects along with a description to entice interested readers. Then they basically pre-order titles to allow authors to start raising money while they write. The site also hosts a reading club and has special initiatives to call attention to new and unique projects.
Slated is another crowdfunding campaign that focuses on the film industry. Filmmakers can post their projects for free and begin raising money from accredited investors. The platform also features easy-to-use tools that help filmmakers successfully create their projects. For example, they match users with executive producers and talent and even provide support with marketing.
What Is the Most Popular Crowdfunding Website?
Kickstarter is still the online fundraising platform that has successfully funded the most business-related projects. Other crowdfunding sites like GoFundMe are also quite popular, though many focus on individuals, nonprofits, and community projects more than business ventures.
What is the Best Equity Crowdfunding Platform?
If you’re interested in investing in early-stage startups, equity crowdfunding sites let businesses run fundraising campaigns by offering small shares in their company. Top equity crowdfunding sites include SeedInvest, EquityNet, and Wefunder. Wefunder is best for new investors since there is a low threshold for investing. For startups, SeedInvest offers access to screened investors and can help your initiatives gain traction with venture capitalists by curating startups for their interests.
Image: Envato Elements