Have you got a business idea that you wish to start but funding is the problem? If yes, don’t worry at all. We have bought for you the best crowdfunding website that you can go to and get funded. Before going in detail of the various crowdfunding platforms available, let us try to understand what crowdfunding is?
With the passage of time, crowdfunding has become more important. It is a tool that helps you to raise money from various individuals online for a new business venture. With the ease of connectivity and reach, the crowdfunding platform has earned quite a popularity in no time. It allows entrepreneurs and investors to meet digitally and based on the idea of the business, the entrepreneur can raise funds in small amounts from various investors. The crowdfunding sites are usually used to fund the ventures related to:
- Education
- Personal and Non-profit
- Creative Projects
- Equity
- Personal Loans
- Real Estate
- Niche
Key Service to Look for on Crowdfunding Sites
Once you know about crowdfunding and have a remarkable idea, it is time to choose the site. But before you choose a crowdfunding platform, it is necessary to analyze them on the following basic key points:
- Ease of access: There are plenty of crowdfunding sites available. Depending on your area and the need for the fund, the decision of ease of access is made. The one that is easy to navigate and explore is the best crowdfunding site to choose from. This will help you to chat and communicate easily as well.
- Support of Customer Service: It is needed even when you buy a small thing online. So, when we talk of crowdfunding sites, the better the customer service support is, the higher would be the flow of the entrepreneurs and investors on the site. Live chat and helpline numbers are way helpful. Additionally, the people running the crowdfunding sites should be legit and trustworthy as well.
- Fees: Every crowdfunding platform has some fees associated with its service. The fees range from 5% to 12% roughly. So before you select the site for your fundraising, it is important to understand the fee structure and any other charges that may incur.
- Connectivity and Tools: Social media is widespread now. A platform that offers you the ease of accessing all the platforms right from Facebook to Twitter, is the best crowdfunding site to go for.
- Reward-Based Sites: Many of the crowdfunding sites are reward-based which means when you raise funds from these sites, the investors get an opportunity to earn a reward. It can be an opportunity to participate in product launch or some product as a small gesture.
9 Best Crowdfunding Platforms and Sites
Once you have the blueprint of your business ready, you can start your hunt for crowdfunding. Below is the list of the best crowdfunding sites that you can visit to raise funds for your business.
Kickstarter
Kickstarter is the biggest and the best crowdfunding site available. It is especially for creative projects and one can raise a good amount of funds to keep the dream alive. Kickstarter has funded millions of ideas and one can browse through various ideas related to art or filming as well. As a fundraiser, you need to set a gift for each level of the contributor. The fees for the site is 5% and an additional 3%+.20$ per transaction.Causes
Causes are the world’s biggest online crowdfunding platform that focuses on issues related to politics, society, and culture. With a network of 186 million users from over 156 countries, the platform offers the best way to raise funds for social and political causes. Causes also provide the feature to create petitions and share your voice with the larger group. It is the most popular crowdfunding site for activists.Indiegogo
If you are looking for getting funds for some tech project, community service, or creative project, then Indiegogo is for you. The site provides you with fixed (all-or-nothing) or the flexible options of funding. The fees of the Indiegogo platform are 5% and an additional 3%+.30$ per transaction. When you need to withdraw the funds internationally, then the transfer fee is 25$.Patreon
Patreon is more dominant among digital entrepreneurs like YouTubers, bloggers, and bloggers. If offers you to create a fundraiser of recurring nature where based on your creativity, videos, and other you can generate the funds at specific intervals. The funds are usually raised in the form of a subscription from the fans and the followers. There is an option of rewards as well for the subscribers on the Patreon platform. The fees are 5% and an additional of 3-5% + $0.25-$0.35 for processing.GoFundMe
GoFoundMe is the world’s largest and best social crowdfunding platform. With the intensive network of individuals, teams, and non-profit organizations, the platform offers you to raise funds for social causes as well. GoFoundMe is the only platform that has a donor protection guarantee. The agents are available round the clock. The fees of the platform are 0% with 2.9% +$.30 as processing fee.Piggybackr
Piggybackr the crowdfunding platform is actually for education. Here the parents and students working as steam or individually can raise the funds for the school project. The students earn points and badges for the efforts put in while working for fundraising. The fees are 4% and an additional 2.9%+$.30 per transaction for processing.Experiment
Are you a science freak looking forward to doing some experiments? But there is a lack of funds. So visit the Experiment crowdfunding site for scientific research. The Experiment platform actually encourages new discoveries and experiments in the field of science and technology that are in a way better for the future. The investors have access to the data to check the use of the funds they provided. The fees of the platform are 8% with 2.9%+$.30 additional processing fees.LendingClub
LendingClub is a debt-based crowdfunding site, where you can avail a loan for a period of say 3-5 years. The annualized rate of interest is high between 10.68 to 35.89 percent, based on the credit-worthiness of the applicant. The process is quicker as compared to regular banks and so it is more preferred by debtors.CircleUp
If you are one who is planning to build a consumer brand, then the CircleUp crowdfunding site is best for you. The site is a network of retailers, experts, and entrepreneurs at the same time. Here you are offered both equity financing and credit financing to choose from. CircleUp is more advisable for companies or individuals who are looking forward to scaling up their sales and need funds to support it.
Final Thoughts
Getting funds is tough and when you are new in the business then the process gets even messier. Crowdfunding sites are actually a boon for the young entrepreneurs who have succeeded in building the best startups. So, if you have an idea and a niche, so make the plan, create a pitch, and get started to raise the funds. So start your crowdfund raising today.
