Crowdfunding is one of the great ways to start and grow your business venture or receive donations for causes that matter to you.
There are many great crowdfunding sites, each possessing their own unique benefits that can help bring your project to life.
Today I want to list out some of the top crowdfunding sites, and talk about how they can take your idea from something that exists in your head and make it a reality.
If you want to gather interest and financial backing from people who believe that your idea can bring value into their lives, crowdfunding could be the perfect method for you.
1. Kickstarter
Kickstarter serves as one of the leading crowdfunding websites for any original idea that can bring value into potential supporter’s lives.
From arts to design & tech to games, Kickstarter can support just about any exciting new venture. With 44% of campaigns reaching their fundraising goal, the prospect of acquiring the backing you need is very likely compared to other sites.
If your project is funded successfully (meaning that you reached your fundraising goal), Kickstarter will collect a 5% fee and impose a payment processing fee of 3-5%. If your project is not successfully funded, there are no fees.
2. Indiegogo
Indiegogo, alongside Kickstarter, also serves as one of the largest and most used sites for crowdfunding.
Unlike Kickstarter, Indiegogo provides two different options for raising money. You can choose between fixed funding, an all-or-nothing approach where you must hit or exceed your fundraising goal in order to keep the money that’s been raised, or flexible funding, where you can keep the money that you’ve raised regardless of whether or not you hit your fundraising goal.
Indiegogo also charges a 5% platform fee on all funds raised for your campaign. Fees are calculated and deducted based on the amount of funds you actually receive, not the goal you set. There is also an additional fee for payment processing, which varies based on your location and currency.
Check out another one of my other articles, 7 Indiegogo Pros and Cons, for more information as to whether or not Indiegogo is the right crowdfunding site for you.
3. GoFundMe
Unlike Kickstarter and Indiegogo, GoFundMe is more centered around non-profit causes and charitable donations rather than business ideas.
GoFundMe does not charge a platform fee, meaning that they won’t take a percentage of the funds that are raised by your campaign.
Whether you are starting a memorial fund, finding emergency financial assistance, or paying for a service dog, GoFundMe’s mission is rooted in raising money for the issues that matter most.
With a donor protection guarantee, donors can feel confident that their money is going to the right place to support a valuable cause every time.
4. Patreon
Patreon is a great way for artists in all genres to garner support for their creative endeavors. The site allows for fans to become active participants in the work they love by offering them monthly memberships, which can include exclusive access to content, community, and the creative process.
In exchange, creators get the freedom to use the funds to reinvest in their work. Patreon is a great way to build the stability you need for a creatively independent career.
Currently, Patreon offers creators three plans, with fees ranging from 5% to 12%. While Patreon does tend to take a larger chunk of fundraising than other platforms, it is a leading choice for artists in particular because the site is so specialized.
5. Start Engine
Start Engine is an up-and-coming platform that combines the power of investing with crowdfunding.
The site allows for people to invest in start-ups they believe in. Companies can raise capital from the crowd through the sale of securities like equity, debt, revenue share, and more.
With Start Engine, anyone can invest in private businesses; not just the ones trading on the stock exchange. You craft your investment pitch into a webpage, raise capital from donors online, then fund the next phase of your growth with a bigger and stronger community behind you.
Start Engine is tailored towards larger fundraising goals and larger projects that require more financial backing.
6. WeFunder
Similar to Start Engine, We Funder offers users an opportunity to invest in your start-up rather than simply donate to it.
With nearly $150 million raised for over 400 start-ups, businesses using We Funder have raised the most dollars for startups that use Regulation Crowdfuning, more than the top three competitors combined.
With low investment minimums at $100, We Funder is a great way to drive the largest pool of investors to your campaign.
7. Lending Club
Lending Club is a unique crowdfunding platform that allows for peer to peer personal loans up to $40,000.
Whether you are looking for personal loans or funds to start your small business, Lending Club users have borrowed over $50 billion to make their dreams a reality.
If you are looking to refinance your credit cards or simplify your debt, Lending Club may be a great option for your crowdfunding needs.
Rates will depend on your prior credit history and payment plan, and run between 10.68% and 35.89% APR with no prepayment penalties.
8. CircleUp
CircleUp creates a transparent and efficient market to drive innovation for consumer brands. It offers both equity capital and credit financing, as well a platform to connect with accredited investors with a net worth of at least $1 million.
You can also gain access to special lines of credit and market insights based off machine learning technology that specializes in making company strategies.
CircleUp’s fees are simple and straight-forward, charging a commission of 5% to companies that raise capital on it’s platform with no other fees.
9. Causes
Causes is considered one of the leading crowdfunding Platforms for nonprofits. Focused around social, political, and cultural issues, Causes brands itself as a social network for donors who want to make a fast and effective difference.
With Causes, you can collect donations and pledges, raise awareness for your cause, and share media to potential donors.
With over 186 million users, the site is a great way for your nonprofit to build a donor community without spending too much money on resources and networking.
Causes is an ad-supported platform, meaning that there are no fees assessed to the money you raised, making it a great option for those with tight budgets.
10. Fundly
Fundly makes it easy to fundraise for anything across a wide range of causes, including fraternity and sorority fundraisers, politics, and the military.
Similar to GoFundMe, Fundly specializes in raises money for causes that tug at the emotional heartstrings of potential users.
While there are no start-up fees for using Fundly, every donation will have a 4.9% platform fee deducted, as well as a payment processing rate of 2.9% plus 30 cents.
