Crowdfunding sites have become a popular way to raise funds for different causes. There are many options available for charities, specific initiatives, and startups. Here’s how to find the best crowdfunding sites to help you raise funds for your business.
What is Crowdfunding?
Crowdfunding allows you to solicit small donations from large groups of people in order to raise funds. Crowdfunding websites allow individuals and businesses to post campaigns and creative projects online. Visitors can then easily donate.
Crowdfunding Sites: Are They a Good Way to Raise Money?
A crowdfunding campaign can be an effective way for businesses to raise funds. This is a great way to reach a broad audience of potential customers. People will donate more if they can find something unique elsewhere. If you are able to raise the funding goal, it is important that you can keep your promises. Many businesses offer gifts or products to donors, for example. Make sure you carefully review your numbers to ensure it makes sense.
How do You Choose the Best Crowdfunding Platform?
It’s crucial to choose the right crowdfunding platform for your goals once you have decided to start crowdfunding. These are some tips to help you get started:
- Think about your crowdfunding goals: What do you hope to fund through these sites? Some sites have very specific requirements such as funding for charitable projects or specific projects. Some are more general.
- Make financial projections: Calculate all costs, such as platform fees and payment processing fees to determine how much you are looking to raise. What platforms will net you the most money?
- Choose a platform that is popular with your target audience: Crowdfunding platforms don’t just facilitate donations, but also aid in the discovery of campaigns. Choose sites that are well-known among potential donors to increase traffic.
- Decide if you want all or none: There are many crowdfunding sites that allow you to keep any money raised. Some sites offer an all-or-nothing model where you get paid only if your goal has been met. This model might work for you if you are unable to move forward without earning a certain amount.
- Compare features: Other features you should consider are the ability to give gifts, space to add media to explain your startup or project, and integrations to social platforms.
Also read: 15 Finance Companies For Small Business Loans with Bad Credit score
The Best Crowdfunding Sites
Looking for crowdfunding platforms to help you launch your creative business? Here are some great crowdfunding websites to check out.
Kickstarter has been a major player in the crowdfunding market. This is a place for creative projects such as music and comics. To receive funds, you will need to run a successful campaign.
Indiegogo connects small businesses with early adopters. This is ideal for companies and innovative projects that address a specific need. They connect companies with experts in areas such as prototyping or marketing.
GoFundMe ranks among the top crowdfunding websites for individuals. It may also be applicable to businesses, particularly those who are looking for community support. This is the best crowdfunding platform for social causes and charitable initiatives.
Fundable is a crowdfunding platform that’s specifically designed for businesses. Based on your company’s goals, there are many models available. Potential investors love it.
Fundly can be used to raise funds for individuals or nonprofits. It’s not suitable for general business crowdfunding. It may be useful for social initiatives or for business owners who are raising funds for personal causes. Businesses may be able to raise funds for charity and build relationships online. You will need to find another platform to finance startup-related projects.
Kiva provides microloans to developing markets. It also offers a crowdfunding platform with private and public fundraising periods. This is different from other crowdfunding sites in that you are actually funding a loan and not a gift. Your business is approved and you can start a private fundraising campaign to raise funds through your connections and followers. This is a demonstration of your character and belief in your idea. Kiva then shares your loan with the entire lending community during a public period.
Patreon is a platform that allows creative entrepreneurs to raise funds through memberships. A content creator might offer content only to paid subscribers, for example. Although it’s not fundraising, it allows businesses to raise money through multiple donors.
Equity Crowdfunding Websites
Investors can use equity funding sites to fund early startup and project funding in return for a small percentage of the company. This works in the same way as buying stock, but it is for smaller companies that do not trade publicly. These are the best options in this niche.
SeedInvest connects visionary startups and angel investors through equity crowdfunding. This site creates campaigns that appeal to the right investors.
EquityNet provides a platform for private investor deals. They verify users in order to connect companies with accredited investors.
Wefunder offers equity crowdfunding with a low limit for investors. These sites are often targeted at large venture capital companies. You only need $100 to make an investment on Wefunder. This expands the potential donor pool.
Also read: 7 Funding Options to Grow Capital Small Business
Niche Crowdfunding Platform Options
There are also crowdfunding sites that target specific industries or project types. Consider the following options for your fundraising efforts if you are looking to reach niche audiences.
11. Seed & Spark
Seed & Spark is one of the most popular crowdfunding platforms for filmmakers. It is focused on creating new creators and sharing important stories with diverse voices. The platform allows creators to raise capital, and it can help them build an audience.
Experiment is a crowdfunding site for scientific research. The site allows scientists and companies to share their goals and ideas. It focuses on individual funding and not large grants. You can share your progress with other interested parties once projects have been funded. The topics covered range from math and social science to ecology, medicine, and even medicine.
CrowdStreet is a unique platform for crowdfunding property investments. This is not a crowdfunding platform as many businesses think. Instead, you can get money from multiple sources to fund a project. It does however allow real estate investors to join together to purchase the property. This is similar to REIT investing but each party owns a smaller share of specific properties instead of a portfolio.
Unbound allows you to fundraise for books. To attract interested readers, authors can post their projects and a description. Authors can then pre-order titles to raise money as they write. This site hosts a reading group and offers special initiatives to bring attention to innovative projects.
Slated is another crowdfunding campaign focused on the film industry. Filmmakers can start raising funds from accredited investors by posting their projects free of charge. Easy-to-use tools are also available on the platform that can be used to help filmmakers create their projects. They match users with talent and executive producers and even offer support in marketing.
What is the Most Popular Crowdfunding Website?
The most successful online crowdfunding platform for business-related projects is still Kickstarter. GoFundMe and other crowdfunding sites are also very popular. However, they focus more on the individual, non-profit, and community projects than business ventures.
What is the Best Equity Crowdfunding Platform?
Equity crowdfunding sites allow businesses to run fundraising campaigns and offer small shares of their company. SeedInvest, EquityNet, and Wefunder are the top equity crowdfunding websites. Wefunder is the best site for new investors because there is no minimum investment. SeedInvest is a platform that provides access to prescreened investors. It can also help startups gain exposure with venture capitalists. SeedInvest curates startups according to their interests.