The Top 7 crowdfunding platforms: Crowdfunding can be a powerful tool to raise funds for your business or project. But first, you need to choose the right platform. This guide covers the basics of crowdfunding and provides some helpful tips to ensure success.

1. Kickstarter

we'll discuss the top seven crowdfunding platforms currently available. We'll explain what makes these sites unique and highlight their pros and cons.

Kickstarter

Kickstarter was founded in 2009 and is one of the most popular crowdfunding websites.

This site offers a platform for entrepreneurs to crowdfund their projects. They offer two types of funding: rewards and equity.

With rewards funding, backers receive perks such as t-shirts, posters, books, and tickets to events after donating. With equity funding, backers invest in the project and share in the profits.

Kickstarter is known for its innovative approach to fundraising. For example, they allow users to set their own funding goals and deadlines.

They also provide detailed information about every campaign, allowing potential donors to learn more about the project.

However, Kickstarter does not charge any fees to funders. Instead, they rely entirely on donations made by backers.

Because of this, Kickstarter campaigns tend to be short term. Most campaigns last between 30 days and 3 months.

2. Indiegogo

Indiegogo was launched in 2008 and is another popular crowdfunding website.

Like Kickstarter, Indiegogo provides a platform for entrepreneurs to raise funds. However, unlike Kickstarter, Indiegogo charges a fee to funders.

Fees range from $0.99 per donation to $9.95 per donation. These fees cover processing costs, advertising, and legal expenses.

Unlike Kickstarter, Indiegogo has no minimum funding goal. Any amount raised is considered successful.

As a result, Indiegogo tends to attract longer term campaigns than Kickstarter. Campaigns usually run for 6 months to 2 years.

3. RocketHub

RocketHub was founded in 2010 and is yet another popular crowdfunding website. Like Kickstarter and Indiegogo, RocketHub provides a platform for entrepreneurs seeking funding.

However, unlike the other two sites, RocketHub focuses solely on technology startups.

To qualify for funding, projects must fall under the following categories: hardware, software, mobile apps, web applications, and services.

Funding ranges from $500 to $50 million. Projects must reach their funding target within 60 days. If they fail to do so, they forfeit their entire investment.

Although RocketHub does not charge any fees, it does charge a 1% transaction fee.

4. Fundable

Fundable was founded in 2011 and is another popular crowdfunding platform.

Similar to Indiegogo and RocketHub, Fundable provides a platform for entrepreneurs looking to raise funds.

However, unlike those two sites, Fundable focuses exclusively on non-profit organizations.

Projects must fall under the following five categories: education, healthcare, social causes, arts & culture, and environment.

Funding ranges between $10,000 and $100 million. Projects must reach 100% of their funding goal within 90 days.

If they fail to do so they forfeit their entire investment plus interest.

Fundable does not charge any fees. However, they do charge a 0.25% transaction fee.

While Fundable is focused on non-profits, it does accept corporate sponsorships.

5. GoFundMe

GoFundMe was founded in 2007 and is another popular crowdfunding site.

Like Kickstarter, GoFundMe provides a platform for entrepreneurs wanting to raise funds.

Unlike Kickstarter, however, GoFundMe does not require a project description or video.

Instead, GoFundMe requires applicants to submit a brief biography and photo.

Applicants then upload a link to their project page where they describe their idea and ask for donations.

Funding ranges anywhere from $5 to $1 billion. Applicants must reach their funding goal within 30 days.

If they don't, they forfeit their entire contribution plus interest.

GoFundMe does not charge any fees but does charge a 5% commission on donations.

6. Patreon

Patreon was founded in 2012 and is another popular crowdfunding service.

This site allows creators to create membership programs for their fans. Creators can choose to either give away free content or sell premium access.

For example, a creator could decide to give away exclusive videos for free or charge $5-$20 monthly for access to additional content.

Creators can set their own funding goals, deadlines, and reward levels. They can also select whether to use rewards or equity funding.

Patreon does not charge any fees for creators. However, it does charge a 4% transaction fee for patrons.

7. AngelList

AngelList was founded in 2013 and is another popular crowdfunding source.

Like Kickstarter, AngelList provides a platform for entrepreneurs hoping to raise funds.

The difference is that AngelList focuses exclusively on early stage companies.

Companies must meet certain criteria before being accepted onto the site.

These include having fewer than 50 employees, having received less than $1 million in venture capital funding, and having been incorporated for less than three years.

Once accepted, companies can post a project description and seek funding.

Funding ranges up to $1 billion. Companies must reach their funding goal in 30 days.

If not, they forfeit their entire donation plus interest.

AngelList does not charge any fees or commissions. However, it does take a 10% cut of all contributions.

What Are The Pros And Cons Of Each?

Each of the above crowdfunding platforms has its advantages and disadvantages.

Pros:

• Rewards Funding

Reward funding is ideal for smaller projects. It's perfect for creative ideas that may need some extra support.

• Equity Funding

Equity funding is ideal for larger projects. It's perfect when you're trying to launch a business or product.

Cons:

• Fees

Most crowdfunding platforms charge fees to both contributors and businesses.

• Short Term

Short term campaigns are often limited to only a few weeks or months. As a result, many people find them difficult to commit to.

• No Minimum Goal

Many crowdfunding platforms do not have a minimum funding goal. As a result, there's no guarantee that anyone will contribute.

• Limited Platforms

Some platforms focus on specific industries. As a result, they may not be suitable for everyone.

Which Is Best?

Ultimately, it depends on your needs and preferences. There isn't one best crowdfunding platform out there.

You should consider the pros and cons of each before deciding which one is right for you.

Do you want to raise funds for a new business? Or maybe you just want to make a quick buck.

Whatever your reason, you can always start your own crowdfunding campaign with our easy-to-use platform.

 

 

 

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