Lifestyle   Money
By Consumer Team | 10 Sept. 2018

Top 8 Crowdfunding Platforms

top crowdfunding platforms

The service you use for crowdfunding will depend on your products, your needs and your ideal customers. If you are recording a record, making children’s clothes or sewing custom purses, you are marketing to consumers, so a reward-based system likely would be best. If you’re a software engineer who just needs to raise money for a startup, the debt or equity route could be ideal. Here are some of our favorite funding sites that run the gamut:

1 - Kickstarter

  • Who can participate? Kickstarter is great for people starting out in all kinds of endeavors, from funding small business to those looking to raise money for a startup. It is not, however, intended for charity organizations who wish to gather funds for their causes. Lots of different companies, from restaurants to toy manufacturers stage campaigns on Kickstarter before seeking money from venture capitalists.

  • What is the format? You only get to the keep the money if you meet the fundraising goal.

  • Fees/costs Kickstarter gets 5 percent of the money raised in successful campaigns, plus 3 to 5 percent of processing fees.

2 - Indiegogo

· Who can participate? The monster of all funding websites, Indiegogo is particularly popular with women, as 47 percent of fully funded campaigns are run by women. Industries that turn to Indiegogo for service are tech, film, design, “green” businesses and travel companies. The platform offers both reward and equity funding types.

· What is the format? You can either keep what you earn or choose the all-or-nothing route.

· Fees/costs Indiegogo gets 5 percent of the money raised in successful campaigns, plus 3 to 5 percent of processing fees.

3 - Fundable

· Who can participate? This crowdfunding business targets the like-minded: other businesses. It is not a DIY company that caters to all sorts of money-raising endeavors. It takes a hands-on approach in helping clients through the process, and as a result, it charges a flat fee instead of a percentage of successfully raised money. Users can select between equity or reward fundraising platforms.

· What is the format? Fundable is an all-or-nothing service.

· Fees/costs The flat monthly fee is $179, and credit card fees are 3.5 percent plus 30 cents.

4 - Microventures

· Who can participate? MicroVentures is solidly in the equity fundraising camp, matching startups with business angels who want to invest as little as $100 (hence the name). The site boasts that it combines the best of venture capital tasks such as connecting, mentoring and research with equity fundraising concepts like ease of use, diversification and open access. Investors are self-directed in choosing which startups to support.

· What is the format? MicroVentures is all-or-nothing

· Fees/costs The company keeps 10 percent from each successful campaign, 5 percent from the issuer and 5 percent from investors.

5 - GoFundMe

· Who can participate? This is the platform of choice for charities and personal campaigns, though some businesses choose to use it as well. When they do, the campaign is for a relatively small amount or for a specific purpose. People seeking help with medical bills or memorial funds for loved ones are popular personal campaigns. GoFundMe strives to be ahead of the field on customer service, pledging a response to inquiries in less than five minutes between 7 a.m. and 10 p.m.

· What is the format? Users get to keep whatever they raise.

· Fees/costs The company pockets 5 percent of funds gathered, and credit card fees are 2.9 percent plus 30 cents.

6 - EquityNet

  • · Who can participate?
  • Another equity funding model, EquityNet has been around for a while. Deals can range from $10,000 to $1 million, which is unusual in sites geared toward venture capitalists. Participation in the site comes with access to specialized software and a well-vetted business plan, and people who use the software say they are up to 10 times more likely to reach their funding goals than if they did not use the software.
  • · What is the format?
  • All or nothing is the name of the game.
  • · Fees/costs
  • The subscription costs $600 for three months of use.

7 - Crowdfunder

· Who can participate? Crowdfunder is a funding site that caters to companies – primarily small businesses – that would usually have a hard time getting attention for venture capitalists. The platform claims to get businesses deals on the same terms as VCs not matter what stage you are in (eg. seed money or Series A). The vast majority of the action on the site are equity deals, but there is a debt funding option as well.

· What is the format? It’s all or nothing on Crowdfunder

· Fees/costs The price starts at $199 per month and goes up from there.

8 - CircleUp

· Who can participate? This crowdfunding business is for the big kids, those looking to raise $1 million or more in a short amount of time. The site boasts it has helped nearly 200 startups raise more than $260 million during its existence. You’d better to ready to run with the innovators, though, as projects on the site seeking funding tend to be pretty outside the box. The bonus of this site is that the service closes deals for the customers, including escrow and fund transfers.

· What is the format? All or nothing is the rule on CircleUp.

· Fees/costs Straight 5 percent of the funds you raise.