Best Crowdfunding Platforms to Raise Money for Startup

Crowdfunding has become one of the most popular ways to raise money for any project. Crowdfunding is an excellent way to raise money for startups without giving up equity or risking too much of their cash. Many crowdfunding platforms have been created, but not all are good options for startups. If you are looking to crowdfund, there are some best crowdfunding platforms out there that can help you reach your goal more quickly than others. Here’s a list of the top 15 best crowdfunding platforms to consider when you want to raise money for a startup.

1. Kickstarter

Kickstarter is among the best crowdfunding platforms on the web, where individuals and businesses can raise funds for creative projects. It has helped companies like Pebble to launch smartwatch and Oculus Rift virtual reality headsets. So far, Kickstarter has raised more than $1 billion through various projects and assisting entrepreneurs worldwide. With Kickstarter, you need to create a project page, provide details of the campaign and wait for approval. The site allows both open-ended movements where you keep all funds even if you fail to meet your goal, or a fixed funding option, which means that it will get nothing if the target is not met.

2. Indiegogo

As one of the best crowdfunding apps, Indiegogo has helped millions of people to raise funds for their business ideas. It does not focus on specific types of projects but encourages users to develop unique concepts that can benefit the world at large. This means that you could create a campaign for experimental research or invent new technology. One great thing about this site is that it does not charge any fee for contributions, though it takes 5% of the total funds raised by entrepreneurs. However, transaction and payment fees amount to 3-5%.

3. Fundable

Fundable is one of the best crowdfunding platforms that allow individuals and businesses to raise money from other people in exchange for ownership of their company. It is open for companies and non-profit organizations to enable individuals to contribute $100 or more to become investors. It provides a perfect option for entrepreneurs who want to convince investors to help them scale their businesses. The site works with equity crowdfunding laws in most countries, including the US.

4. Microryza

This is one of the best crowdfunding apps that helps entrepreneurs turn their innovative concepts into reality. It is more like Kickstarter, where winning campaigns are chosen through voting by the public and expert judges. However, it has one significant difference; it focuses on research projects that can help millions of people in different parts of the world. So far, Microryza has allowed scientists to raise more than $5 million for their research projects, and it is the go-to site if you need to raise funds for cancer or diabetes medication.

5. Kiva

Kiva is one of the top crowdfunding websites where businesses can launch creative ideas to raise money from their target audiences. It offers two options; social fundraising, where entrepreneurs can create a campaign page to introduce their opinion, people pledge money for the projects, and you receive all funds if your target is met. A direct lending option also allows entrepreneurs to borrow funding that they pay back over time with added interest rates.

6. Crowdfunder UK

Crowdfunder, one of the best crowdfunding platforms, allows entrepreneurs to launch creative ideas to raise money from their target audience. It has helped many startups secure funding, and it is considered one of the best options if you are looking for venture capital for your new idea. The site focuses on an equity or revenue-based funding model, where entrepreneurs get money in exchange for part ownership of their business. The type of funding you can get for your business depends on the investment needed to complete the project.

7. CircleUp Network

This is one of the top crowdfunding websites if you are looking to secure traditional venture capital for your new company idea. It works with leading venture capitalists to help entrepreneurs launch their projects. You can apply for funding through this site or another crowdfunding platform, and investors review applications on a rolling basis. So far, the site has helped early-stage consumer product companies raise more than $500 million from some of the top venture capitalists in America.

8. Seedrs

This is one of the best crowdfunding platforms that attract investors from around the world. It has a unique business model that allows entrepreneurs to raise funds for part ownership of their company and only invest if they reach their fundraising target. The site gives everyone an equal playing field, allowing individuals to compete with venture capitalists to secure funding for new startup companies. So far, more than $75 million has been raised by early-stage businesses on this site since its launch in 2012.

9. Ulule

This is one of the top crowdfunding websites that helps entrepreneurs launch their projects and raise funds from different parts of the world. It focuses on creative projects, and it has helped raise more than $40 million for new business enterprises since its inception in 2010. The platform is perfect for passionate entrepreneurs who need money to turn their ideas into reality. For example, one entrepreneur used the site to fund his project that educates children about road safety through short movies displaying dangerous situations.

10. CrowdCube

Crowdcube, one of the top crowdfunding websites, allows entrepreneurs to launch their business ideas to raise money from individual investors. The platform attracts millions of visitors every month, and it has helped many businesses secure over $100 million in funding since its inception in 2011. You can sign up for free on this site or use its mobile app to access funding opportunities. So far, the site has worked with more than 11,000 startups spread across England, Wales, Scotland, and Northern Ireland.

11. GoFundMe

GoFundMe is one of the top crowdfunding websites for your startup. This platform lets you create a campaign page to introduce your project and raise funds from your target audience. It is perfect if you are looking for small donations from a large audience. The site has helped many entrepreneurs launch their businesses without worrying about high fees or limitations. For example, an entrepreneur used this site to raise money to fund his travel from Michigan to South Carolina.

12. Onevest

This is one of the top crowdfunding websites that bring together investors with innovative startup companies in need of funding. It allows entrepreneurs to form syndicates by reaching out to their connections on social media platforms like Facebook and Twitter, then getting them interested in investing in the project at hand. The best part is that there are no limits regarding how much you can raise for your business. So far, more than $5 million has been submitted by early-stage companies using this platform since its launch in 2011.

13. GoGetFunding

This is one of the top crowdfunding websites perfect for any entrepreneur who needs a little help launching a digital campaign to raise individuals worldwide. Once your project is ready, post a pitch with a video, and the site’s administrators will start sharing it on social media to spread awareness about your crowdfunding campaign. You can also share this information with your friends, family members, colleagues, social media contacts, business partners, and other individuals who might be interested in pledging. So far, over $60 million has been raised by early-stage businesses using the site since its launch in 2010.

14. Fundraise

This company is the best crowdfunding apps as it helps non-accredited investors invest in commercial real estate deals. It has helped entrepreneurs around the world raise more than $300 million through real estate projects. This means that you need to have $100 to get started and help fund the projects, but the return on investment is high compared to other platforms. Investors who put in $500 are expected to double their money over five years.

15. DigiBond

This is one of the best crowdfunding platforms that allows entrepreneurs to raise funds for their startups using the power of social media. It focuses almost exclusively on digital products to help early-stage companies get funding for their new websites, mobile apps, and online businesses. The site has helped over 1,000 companies raise more than $100 million since its inception in 2012. To use this platform, create a project page explaining everything about your idea in detail, then share it with friends and family members who might be interested in playing a part by making pledges or donations.

# FAQ

The following are some common questions people ask about crowdfunding:

1. What does Crowdfunding mean?

Crowdfunding is the act of raising funds for projects or ventures by collecting relatively small sums of money from a large number of individuals. The two primary types are campaign-based and project-based crowdfunding, where people donate to other people’s campaigns (donation-based) or choose to fund an entire project in one go (equity-based).

2. What are the risks of Crowdfunding?

One of the most important risk factors is fraudulence. Since there is no way of controlling who will use your campaign, it can happen that you don’t get the money while the campaign is running. Also, while getting funding for your idea seems like less work than usual, it means that you will have to maintain transparency and communication with funders online actively.

3. What should you know about Crowdfunding before starting a campaign?

Before starting a crowdfunding campaign, you have to think about who will go for it and why. It would be best to consider how much time and energy you are willing to put into the campaign and whether your idea is suitable for crowdfunding in general.

4. Who can use a successful crowdfunding campaign as an example for their crowdfunding campaign?

Anybody could use a successful crowdfunding campaign as an inspiring example. However, it is essential to check whether the project was successful and managed to achieve its objectives. Think about what ideas can work for your campaign if you want to make one similar to the other.

5. Why does crowdfunding have a lot of negative opinions?

It is important to remember that some people do not like crowdfunding since they see it as too much trouble, while others are sceptical about the campaign’s final result. Many people also see funding something online through strangers as risky or annoying, so there are valid reasons why crowdfunding has a lot of negative opinions.

6. What are the most common mistakes made when launching a crowdfunding campaign?

The most common mistake is not researching before starting a campaign. Not checking whether the idea is suitable for crowdfunding and underestimating how much time and energy you will have to put into it because of transparency requirements are also quite widespread mistakes. Last but not least, not delivering what you promised can ruin your reputation and make future crowdfunding attempts unsuccessful.

7. What is the best way to start a crowdfunding campaign?

The best way to start a crowdfunding campaign is by starting with research. Determine whether your idea is suitable for it, how much time, energy, and money you are willing to put into it, as well as how much money you need to make your campaign a success. Also, check whether the idea has been done before and what other similar movements have been achieved.

8. How can you make sure that your crowdfunding campaign will be successful?

Successful crowdfunding campaigns always ask themselves the same question: Who will back this project and why? You need to think about what sort of people would like your idea, how they will hear about it, and whether they would like to contribute. It is also essential to check whether there is a market for your product and how you will use the money.

9. What is the relation between an idea and a crowdfunding campaign?

A good idea is what makes people back it on crowdfunding platforms. Before starting your campaign, make sure that you have checked whether the concept is excellent if there is a need for it, and who would be interested in it. In other words, you have to think about what people would back and why.

10. In which cases should you not use crowdfunding?

Just because so many people are doing crowdfunding, it does not mean that everybody has to try it. Crowdfunding is only suitable for particular things and if there is interest in your idea online. You should also be aware that crowdfunding is quite demanding, so you need to invest a lot of time and energy to maintain transparency with funders online.

11. What can you lose by using crowdfunding?

You need to understand that using crowdfunding involves sharing your idea with the public, which means that they will have lots of influence on it. You also need to be aware that there is the risk of your project failing, which means that you will not get any funding. On top of that, running a crowdfunding campaign costs time and energy so that it can have an impact on you.

12. Why should you use crowdfunding?

Crowdfunding is suitable for getting funds for projects interested in the final result, even though they do not get it for free. It is also ideal for products or brands that are already well-known since buying something online from an unknown creator can be risky. Last but not least, crowdfunding is used to validate ideas and products, so people want to support it before anyone else does.

13. What makes crowdfunding different from other ways of financing?

First of all, crowdfunding is not about giving money to charities or people needing financial help. Secondly, you do not lose ownership of your idea or product just because you ask people online for funding. Also, it is essential to mention that crowdfunding involves transparency on both sides since the funder needs to be sure that the project owner will live up to their promises.

14. What are the rewards of crowdfunding?

Rewards are linked to the amount of money you are prepared to spend on them, so a limited number of them are available for each price range. In other words, campaigns always offer something unique in return for what people contribute. Rewards may also include pre-sale products that people can get before they are available in shops.

15. What are the benefits of crowdfunding?

Crowdfunding is a way to create financing for business ideas, events, or projects. It can be used for almost everything, from significant events like festivals to small business needs, e.g., marketing costs. The advantage of crowdfunding compared with traditional financing methods is that it has a lower entry threshold and is easier to raise money for startups. You do not need to get an investor on board; share the idea with potential funders online.