Crowdfunding sites have put some of the best business ideas on the part to success.
Raising funds to launch your business is not easy. But if you’re at the point of raising money, crowdfunding websites can be your best bet to launch your business.
It doesn’t matter what your business idea is or which industry you’re in, crowdfunding offers you the easiest and most effective way to raise enough capital for your ventures.
However, you will need a strong promotional campaign to get those funds and need to exchange either equity or rewards to reach your target.
Just like any other thing in the world, you’ve to give something back in order to get the funds you need.
Here are the most common type of crowdfunding:
- Equity crowdfunding: You sell a piece of your startup to a group of investors and they provide you with the funding to launch or grow your business.
- Reward crowdfunding: You set a donation amount and specify a reward if an investor donates funds (which you specify) they will get the reward. Most rewards are from the business itself. For example, if I have a subscription startup, I might decide to give anyone who donates $50 a 2 months premium account.
- Donation crowdfunding: This works best with nonprofit businesses. You simply create a crowdfunding campaign and ask for a donation. You don’t give anything back.
- Debt crowdfunding: Instead of borrowing money from a bank, you borrow money from individuals, set an annual percentage rate, and payback according to the campaign structure.
In this article, you’ll discover 25 crowdfunding sites that you can use to launch and grow your business. Each crowdfunding site comes with different requirements and set up.
Without further ado, let’s get started.
Startup Crowdfunding sites
As a startup, Fundable allows you to choose between the reward option and the equity option.
The reward option allows you to raise funds for your business in exchange for product sales. This means you can offer a portion of your product whenever an investor donates a given amount.
The equity option allows you to raise funds from accredited investors. This means you give up a part of your company in exchange for capital.
Once you get started on the platform, the Fundable team provides hands-on support through your crowdfunding journey.
They also work with thousands of investors and the investor database become available to you for browsing.
As a startup and business owner, Fundable is one of the first crowdfunding sites you should definitely take a look at.
Kickstarter is one of the names on everyone’s lips in the crowdfunding industry. The company is known for bringing creative projects to life.
Kickstarter does not allow any charity to raise funds on its platform and participant have to follow a tight rule to get funded.
This means that if you don’t reach your funding goals then you won’t get the capital you raise and you can’t give monetary rewards to investors.
With that in mind, the platform is the best for a creative entrepreneur and its design to help you showcase your business.
Just like Kickstarter, Indiegogo also provides a crowdfunding platform for creative startups and individuals.
The platform is not limited like Kickstarter but once your project has been successfully funded, you’ll sell your product in the Indiegogo marketplace which, in my opinion, is a big boost for your startup.
Indiegogo offers flexible funding and fixed funding options for each campaign.
Flexible funding allows you to get all the funds you raised even if you don’t reach your funding goal.
Fixed funding allows you to get the funds you raised only if you reach your funding goal by a set deadline. This is a more risky option.
You cannot raise funds as a charity or individual on Indiegogo but they offer a different platform, Generosity if you fall into this category.
4. Crowd Supply
Unlike other crowdfunding sites that focus on different industries, Crowd Supply only focus on funding startups that create original hardware.
Their mission is to bring original, useful, respectful hardware to life, and this as positioned them to have more successful campaigns than other crowdfunding sites in the hardware industry.
They offer standard and custom plans for an entrepreneur to create a successful campaign.
If you create hardware as your product, you might want to check out Crowd supply.
The Experiment’s goal is to help fund the next wave of scientific research. If you have a scientific project that needs funding then Experiment is the platform for you.
This platform is solely focused on scientific and academic projects which make it easy for creative projects to get funded.
Patreon is not your typical crowdfunding website. The reason why I add it to this list is that it can become a great source to finance your startup and live your passion.
Patreon allows creative individuals to get paid for their work by running a membership business.
You’ll get a consistent stream of revenue as fans pay you a subscription amount of their choosing to get access to exclusive deals and behind the scenes content.
So many business ideas have gone down the stream because individuals can’t run a successful crowdfunding campaign, convince investors to invest in their startups, or get loans from banks.
With Patreon, you’ll be able to raise funds for your business endeavor by doing what you’re best at.
Here are the creative skills you can use on Patreon:
- Video creators
- Visual Artist
- Writers & Journalist
- Gaming Creators
- Non Profits
WeFunder’s mission is to help startups and business owners raise funds by sharing the rewards of capitalism more broadly.
This platform is flexible and their goal is to help founders which makes them place immense value in understanding the mindset of business owners.
WeFunder is the largest platform in the crowdfunding space by having the highest number of dollars raised, numbers of companies funded, and the number of investors.
Crowdfunder allows startups and business owners to raise funds from venture capitalist and angel investors. To raise money, you can provide equity, debt, convertible note, or revenue share.
Here are the features of Crowdfunder platform:
- Access to a growing network of VCs and angel investors.
- Campaigns are highly discoverable.
- Investors actively invest in startup deals.
- You’ll get access to a fundraising success manager to coach startups through the funding process.
SeedInvest connects you to venture capitalist and angel investors. Established in 2012, SeedInvest works with professional early-stage companies.
You’ve two options to raise money on the platform. Either convertible note funding or preferred equity.
For convertible note funding, you’ll need to provide valuation cap, conversion discount, interest rate, and term length.
For Preferred equity, you’ll need to provide a pre-money valuation. It takes a minimum of 60 days to start and get feedback on your application.
Real Estate Crowdfunding sites
10. Patch of Land
Patch of land allows you to raise funds for your real estate project or invest in crowdfunding real estate project.
If you’re interested in investing, you can earn up to 12% in 12 months while you can get funded in about 7 months depending on the fund you want to raise as a borrower.
The platform embraces peer-to-peer real estate investment and you can start raising funds by completing their 5 step application process.
Fundrise pride itself as “the future of real estate investing”. Fundrise allows users to acquire high-quality assets that are previously available to major institutions alone.
The platform also embraces a low-fee approach. While investing in crowdfunded real estate is historically highly profitable, the industry is known for its ridiculous high advisory fee and hidden fee.
Fundrise helps you break free from that and enjoy your gains even more.
RealtyMogul allows you to invest in crowdfunded real estate. Invest starts from $1000 with three different options.
REITs – Allows you to invest in a growing portfolio of diverse commercial real estate.
Individual properties – Invest in single properties or private placements.
1031 Exchanges – This option is for investors seeking capital gains from the sale of existing properties.
RealtyMogul investment committee has over 200 years of collective experience so you can be sure your investment is in safe hands.
The company also have vigorous process of accepting properties to be funded on their platform.
Personal & Nonprofit crowdfunding sites
GoFundMe was one of the crowdfunding sites to really take off and bring the dream of raising funds to individuals and non-profit organizations.
The platform is trusted by thousands of people and have a great support system for both investors and fundraisers.
They have a “keep it all” regulation which means that if you don’t reach your funding goal, you still get to keep all the funds you raise.
Fundly is a crowdfunding platform for both individuals and non-profit organizations. You can raise money for any type of cause, event, or needs.
The platform, like GoFundMe, also run a “keep it all” campaign. This means you get to keep all the donations whether your funding goal was met, not met, or exceed expectations.
It takes just a few minutes to setup a campaign.
FundRazr allows individuals, non-profit, and companies to raise funds on its platform.
You can create campaigns in minutes and you get to integrate your social media accounts to promote it to your community.
An Australian-based crowdfunding website, MyCause offers both flexible and fixed crowdfunding model.
Individuals can raise money for medical treatment, medical research, or other personal cause.
You can also integrate your social media platforms which helps you to easily share your crowdfunding campaign on your social media profile and start getting traction.
SportsEngine allows Individual athletes and teams to raise funds on its platform.
RallyMe is the no. 1 online sports fundraising platform for athletes and partnering with over 35 sports national governing bodies and top sports organizations across the globe to help athletes and teams to raise funds to compete.
In September 2016, SportsEngine acquire RallyMe to add fundraising to its product. Now you can raise funds on SportEngine as an athlete or sports team.
SportsEngine gives you three options to use its platform:
- $0/month to raise funds with limited features especially for sports teams.
- $69/month to raise funds
- Custom plan for your team.
18. Double the Donation
This platform, Double the Donation is not a crowdfunding platform but it can help you double your nonprofit crowdfunding campaign.
It allows you, supporters, to find the eligibility and matching requirement of their company’s program by searching for their employer’s name.
This makes them donate according to the minimum or maximum threshold set by the company.
Check it out and double your revenue from crowdfunding sites.
Products crowdfunding sites
Bonfire combines the power of t-shirt sales and fundraising to give individuals and non-profit organizations a stellar crowdfunding experience.
While other crowdfunding sites tend to give you the option to raise funds and convince those donating to your cause with words and videos, Bonfire helps you give back to those that donate.
With Bonfire, you’ll have a t-shirt store where you can customize the design of the shirts, set the price of each shirt and Bonfire will handle the creation and delivery of the shirt while you get the donation and create awareness for your cause.
Just like Bonfire, Represent allows you to raise funds for your cause by designing a t-shirt and giving those designs for funds donated.
In three steps, you can set up a campaign and start raising funds. You won’t handle any inventory so you get 100% profit from your campaign.
TeeSpring is not one of your typical crowdfunding sites but it works just like Bonfire albeit with more products.
With TeeSpring, you can create a free e-commerce store, design products such as face mask, t-shirt, bags, cap, and more, and promote it to your community.
You’ll get 100% profit paid directly to your PayPal or Payoneer account. This is great such as fundraising for your cause.
Education crowdfunding sites
22. Donate Kindly
Donate Kindly is a free donation tool for schools and nonprofit organizations. It’s simple to use and efficient.
All you need to do is to add Donate Kindly’s donation tool to your school or nonprofit website and encourage your supporters to donate to your cause.
One cool feature of Donate Kindly is that it stores the information of those that donate to your cause and allows you to reach out to them for future donations.
DonorsChoose help raise funds to get educational materials, classroom materials, and other educational-related items for teachers and public schools in the United States.
Once the campaign reaches its goal, DonorsChoose will send the materials and items to the school instead of sending the fund. This enables transparent transactions between schools and donors.
DonorsChoose is very specific to those they are interested in raising funds for – teachers and students – and if you don’t fall into any of this category, don’t bother checking out the platform.
24. Deposit a Gift
Deposit a Gift is one of the crowdfunding sites for schools and educational purposes. They also allow you to sell event tickets and offer a “keep it all” model.
You’ll be able to store the details of those that donate for future purposes. Customize your crowdfunding site and share it through your social media platform and start getting traction.
StartSomeGood is a social change initiative and they are interested in campaign that embrace this policy.
The platform pitch itself as “A different kind of crowdfunding platform for a different kind of crowd”.
One of the most interesting features of this platform is that its Global support team provides campaigns with personalized feedback before the campaign launch.
This help ensure that each campaign is well-positioned to reach it goals.
Crowdfunding sites are one of the best ways to raise funds for your cause, create awareness, and get people to involve.
However, it’s not a set and forgets method of raising funds as you must be actively engaged with your crowdfunding campaign.
You must share updates, promote your campaign, and fulfill your campaign promise if you made any.
What cause do you want to raise funds for or likely to raise funds for in the future? Comment below and create awareness for your cause.