Are you wondering which crowdfunding platform is best for your project, startup, or fundraiser?
In this article, we’re discussing which crowdfunding site could best meet your needs, along with giving you some other suggestions as to other platforms you should consider for raising money online.
Keep in mind that every crowdfunding website is different, so it’s hard to definitively crown a leader. It’s like comparing a hammer and wrench — different tools are used for different jobs.
Nevertheless, we’re working to narrow down your search.
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For now, let’s investigate the best crowdfunding options out there for you.
How to Choose Your Crowdfunding Platform
The best platform for your particular venture is highly dependent upon what it is that you’re raising money for.
There is a big difference between crowdfunding for a product launch as compared to raising money for a charitable cause. Or maybe you’re looking to raise funds for a real estate development or new software tool.
It also depends on the type of offering that will work best for your business. The most popular crowdfunding offerings are as follows:
- Traditional crowdfunding: You raise funds from the crowd in exchange for a reward or perk. The most popular crowdfunding sites for this type of offering are Kickstarter and Indiegogo.
- Equity crowdfunding: You raise funds from both accredited and non-accredited investors in exchange for future equity in your company. The most popular crowdfunding sites for this type of offering are Wefunder, StartEngine, and Republic, to name a few.
- Nonprofit crowdfunding: You raise funds for a charity organization, personal expenses, or a cause in exchange for nothing through a donation-based system. The undisputed leader in this space is GoFundMe.
- Real estate crowdfunding: You raise funds for real estate development, whether that be commercial, residential, or industrial, etc., in exchange for future payout of dividends. Some popular platforms for this are Fundrise and Crowdstreet, though these offerings are also available on equity platforms, in many cases.
You’ll have to determine what type of project you will run to bring your business to life. For most creators, this will be accomplished through either traditional or equity crowdfunding.
Best Platform for Traditional Crowdfunding
When it comes to traditional crowdfunding, Kickstarter and Indiegogo are the preferred options for entrepreneurs.
And in our experience here at CrowdCrux working on hundreds of campaigns, we usually suggest that creators launch on Kickstarter.
Why? Well for starters (pun intended) — the sheer volume of backers on Kickstarter will enable you to reach a profound audience.
According to a Statista report as of November 2020, 19 million people had pledged their monetary support to more than 500,000 projects launched on the platform. And further, more than 6.3 million people had backed more than one project on the site.
To date, almost $6 billion have been pledged on Kickstarter.
That’s pretty impressive stuff.
This isn’t to say that Indiegogo’s network of backers isn’t robust — the platform boasts a 9 million person user network.
And further, Indiegogo’s support team is typically viewed as more hands-on and accessible when compared to Kickstarter.
Still — name recognition and the size of crowd is vital in crowdfunding. And Kickstarter certainly has both.
For some categories such as software or design, Indiegogo could actually be a better option for audience targeting. It also allows for flexible funding, which is attractive in some cases.
For a more in-depth discussion on Kickstarter vs. Indiegogo, make sure to check out this comprehensive article.
Best Platform for Equity Crowdfunding
Equity crowdfunding is an emerging option for entrepreneurs to raise money from the crowd in exchange for future equity in their business — similar to a Shark Tank scenario.
This stage allows for:
- Access to capital
- An extremely inclusive marketplace
- Fast growth potential
However, it does mean heavy upfront costs, giving up ownership of your business, and complicated rules and regulations.
Because equity crowdfunding is so new, the industry is still developing. But it’s growth shows amazing promise.
Typically, we recommend that startups seeking the equity crowdfunding market launch on either:
Why? Because these platforms are the most polished and notable, giving you the opportunity to reach a vast investor network.
For a more comprehensive list of equity crowdfunding platforms, check out this article.
Conclusions: Which Crowdfunding Platform Should You Pick?
Depending on whether you’d like to present a traditional or equity offering, you will most likely launch on one of four platforms:
- Kickstarter
- Indiegogo
- WeFunder
- StartEngine
While we’d love to tell you exactly which platform is best for you, it’s highly dependent on a project-to-project basis. For personalized coaching and help with your campaign, you should book a coaching call with our founder Salvador Briggman.
Not at the coaching stage yet? No problem. We’re committed to providing the educational resources you need to be successful:
- The Crowd Crux blog, podcast, and Youtube channel where we’re always working to deliver the best insider tips, tricks, and secrets from experts who have a wide range of experience in the industry.
- The Crowd Crux weekly newsletter that delivers awesome, valuable insights to your inbox every Thursday.
- Books and courses designed by our founder Salvador Briggman, such as The Kickstarter Launch Formula and its sister UDEMY course
- The book: Equity Crowdfunding Explained
We hope that this article was helpful for you as you set out on your crowdfunding journey! Good luck with your campaign, and use CrowdCrux as your trusted resource, should you need us.
