Crowdfunding platforms or websites help business owners (entrepreneurs), individuals, creatives, and non-profits or community activists to raise funds for any type of project through accessing a huge number of prospective backers. There are various types of crowdfunding platforms, such as donation crowdfunding, rewards crowdfunding, equity crowdfunding, debt crowdfunding, and flexible or fixed crowdfunding. Other remarkable developments in crowdfunding, include: mobile solutions, group-based approaches, localization (funding of participants in particular cities and neighborhoods), and investment crowdfunding (owning shares in a company).
Many people tend to use popular crowdfunding platforms which have loyal backers. However, these well-known platforms have a fierce competition for views. For those seeking support, it is advisable to analyze the differences between websites in order to choose the platform that connects them with backers interested in their projects for a stronger level of support. It is important to consider factors like restrictions, ease of use, social media integration, fees, administrative work, and reputation of the site
Here are the top 10 crowdfunding sites:
Kickstarter is a crowdfunding site for artists, product related businesses, and designers venturing in creative projects across different categories like food, games, music and dance. So far, Kickstarter has enabled campaign owners to raise about $2 billion for funding over 92,000 projects.
Kickstarter has grown in popularity since its inception in 2009 for its famous policy of funding, a all or nothing”. This philosophy minimizes donor risks and encourages donations. The platform was only available for US citizens, but it has continued to expand globally. As from 2015, Kickstarter has become a Public Benefit Corporation.
Indiegogo was started in 2008, becoming the first crowd funding website to hit the internet. The platform has spread its global reach enabling people in over 224 countries to create campaigns. This fundraising platform is suitable for individuals with personal needs, social impact campaigners, businesses and creative types looking for funds to finance their projects.
Potential donors select from categories that include animals, comic, politics, writing, and small business. Indiegogo is well-known for its integrated data, marketing tools and flexible billing options available for its users.
Giggrabbers is an innovative platform that helps users start and develop businesses through crowdfunding, outsourcing, and equity lending. It’s a great tool for entrepreneurial and venture projects. The platform allows users to visualize tasks needed to start or develop a business, outsource those tasks to freelancers, and raise funds to pay for those tasks through a crowdfunding campaign. Giggrabbers utilizes users’ personal networks to build traction and momentum for fundraising campaigns, and users hire freelancers from mobile app developers to intellectual property professionals while raising capital to pay them.
Once a project is created, a crowdfunding campaign is automatically created based on the overall budget of the jobs. Backers can interact with project and can fund the entire project or a specific job within it.
Fundable was created specifically to help entrepreneurs get funds to launch new business. Started in May 2012, Fundable has been a great platform for most types of small businesses, and especially for those who need support in finding the right investors.
The company can offer equity to project backers rather than the usual rewards associated with most crowd sourced projects. With offices based in California, Ohio, Santa Monica and Columbus, Fundable has a friendly business model for those seeking equity campaigns and rewards, allowing campaign creators to raise funds from customers, friends, and investors.
Crowdfunder.com is the largest and fastest growing website for raising investment for investors. It has its headquarters in Los Angeles and was launched in 2011. Crowdfunder is renowned as the equity crowdfunding leader for funding and sourcing high-growth ventures.
This platform has a VC Index Fund used to provide free access to private VC-backed startups in the early stage for free. The company also plays an important role in policy making matters and is actively engaged in government activities through the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA). Crowdfunder is best for accredited investors, startups and entrepreneurs at all stages.
Crowdrise allows individuals to raise money for personal needs and established charities. Since its launch in May 2010, Crowdrise has offered a fun and light way to raise funds, inspiring creativity in prospective fundraisers and putting donors in a charitable spirit.
This crowd funding site is great for groups or individuals who want to have fun and do good at the same time. The company emphasizes on the social media influence and global citizenship. Crowdrise does not require any minimum goals or campaign deadlines.
Founded in 2009, MicroVentures Company based in Austin and San Francisco offers a platform to connect non-accredited and accredited investors to start equity-based crowdfunding companies.
MicroVentures, is renowned as one of the first financial industry organization to merge venture capital industry with crowdfunding. For instance, Facebook raised money through MicroVentures. This website funds startups, particularly those in healthcare, entertainment, media, technology industries, and consumer services and products.
GoFundMe is a crowdfunding platform which enables users to raise funds for professional and personal projects. Users collect about $4 million daily in different categories like medical, emergencies, volunteer and education.
Since its launch in May 2010, the site has raised over $2 billion. This is probably the most successful crowd funding site after Indiegogo and Kickstarter. GoFundMe is great for non-profits, entrepreneurs and individuals who need choices between responsive customer support and campaign types. The site takes 5% of every donation, but is free to users and can sync easily with social media.
CircleUp is a crowdfunding platform that is equity-based. It focuses on retail companies and early-stage consumer product. Since it was founded in 2011, CircleUp has been offering two main types of funds, Mixed and Circle Funds.
The site selects companies using a data-driven approach and offers entrepreneurs with sophisticated tools to raise and manage capitals, and support innovative and emerging consumer brands. CircleUp works great for businesses producing tangible products and looking for help from funding partners.
RocketHub is a popular crowdfunding website to boost your project launch. The platform has a simple process for your project upload. Furthermore, it offers an easy way to track the status and progress of the projects.
RocketHub is well-known for its features, including FuelPad and LaunchPad. LaunchPAd, RocketHub’s winning feature, helps members, companies and marketers raise public interest and get more potential opportunities to fuel their projects. RocketHub works great for creatives like musicians, photographers, and artists seeking publicity and rare opportunities.