Top 10 Best Crowdfunding Websites (2023)
Crowdfunding is a way of raising money to finance projects and businesses. It enables fundraisers to collect money from a large number of people via online platforms. Crowdfunding is most often used by startup companies or growing businesses as a way of accessing alternative funds.
Crowdfunding platforms offer easy-to-use tools that provide a smooth experience for both fundraisers and their supporters. Many entrepreneurs have raised massive capital through crowdfunding for their businesses and the digital era has particularly ensured that business ideas are not trashed for lack of capital. By using crowdfunding platforms, entrepreneurs can obtain startup capital from a variety of sources in varying amounts, oftentimes in exchange for products or equity.
If you’re thinking about crowdfunding your startup but aren’t sure where to start, you’re in the right place. To help you get started, we researched and reviewed the top 10 crowdfunding websites that can help you get the funds you need for your project, idea, or cause. Also, we’ll tell you what each of them requires.
There are a lot of crowdfunding platforms to choose from especially if you are a startup. However, you must be properly guided on the best websites you can use to crowdfund your business. We have provided the top choices for you in this post. With crowdfunding, the bank isn’t your only option when it comes to raising capital for your business. Crowdfunding your next business venture can be a fast and relatively easy way to raise money.
What is crowdfunding?
Crowdfunding is the practice of funding a project or venture by raising money from a large number of people, typically via the internet. It is way for startups to raise money in exchange for equity, rewards, debt, or nothing at all. Business crowdfunding can provide you with fast access to cash, but it requires a strong promotional strategy, transparency, and possibly giving up some equity in the business.
How Crowdfunding Works
Every crowdfunding site has its own unique features. However, the overall fee structure, and user base, the core concept is the same. You submit your project to the platform with a fundraising target and a deadline and then campaign for support online, often through social media.
How Crowdfunding Sites Make Money
Crowdfunding sites make money by charging a fee to startups for listing their project on the site. They also make money by taking a commission on the amount of money raised through the crowdfunding campaign. Some platforms will even charge investors a fee for making transactions through the site.
Who can Use Crowdfunding?
Every entrepreneur and business owner and can use crowdfunding. Entrepreneurs and business owners can raise startup capital from a variety of sources in varying amounts, oftentimes in exchange for products or equity.
Types of Crowdfunding for Business
- Equity crowdfunding
- Donation crowdfunding
- Debt crowdfunding
- Rewards crowdfunding
Top 10 Best Crowdfunding Websites
Kickstarter is one of the well-known and trusted platforms to raise money and users are actively looking for early startups to support. The website is popular among artists as it has helped thousands of them give life to their ideas. Since its launch in 2009, the company has had a great success. It has helped 15 million people pledge $3.7 billion to successfully fund more than 143,000 projects.
To create a fundraising campaign on Kickstarter, set your funding goal, and the time frame within which you want to achieve this goal. You do not receive your funds unless your set funding target is achieved. In addition, this platform is very secure. Every campaign goes through a vetting process before being approved. This keeps the platform devoid of fraudulent scams, thus earning the trust of investors.
Creating a project on this platform is free, but if it’s successfully funded, Kickstarter applies a 5% fee to the collected funds. There will also be processing fees between 3-5%.
Founded by YouTube musician Jack Conte, with Sam Yam in 2013, Patreon is one of the most reliable crowdfunding websites. To date, the platform has attracted more than 250,000 creators and helped these professionals bring in $3.5 billion in funds. It is the best option for artists and other creative professionals such as bloggers, YouTubers, podcasts, cartoonists, musicians, and live streamers.
Patreon is a subscription-based platform and allows creative professsionals and artists to raise funds from friends, family, supporters, and admirers. The three plans available are Lite, Pro, and Premium. These plans are respectively targeted at creators who are getting started, looking for funds to support the business, and established creators.
Each plan has a Patreon fee which starts at 5% for the “Lite” plan. In addition, they have payment processing fees of 2.9% + $0.30 per successful transaction over $3. The micropayment rate is 5% + $0.10 per successful transaction of $3 or less.
Crowdfunder is the platform with one of the largest and fastest growing network of investors. It offers equity crowdfunding currently only from individuals + angels + VCs, and was a leading participant in the JOBS Act legislation.
What sets this platform apart from others is that you are not required to set up, rather, it enables you to transform a product page on your website into a crowdfunding page. money raised. Thus, if you already have a Shopify store and are interested in crowdfunding a new product through your own website, the Crowdfunder app for Shopify is a great fit.
Crowdfunder is ideal for you if you want to test out new product ideas, raise money for a cause, or launch limited-run products.
If you are a social entrepreneur and nonprofit organizations seeking to raise funds, GoFundMe is the right platform for you. This crowdfunding website is popular, and over $15 billion in capital from over 200 million donors. It offers the first and only donor protection guarantee: the GoFundMe Giving Guarantee.
It allows people to raise money for events ranging from life events such as celebrations and graduations to challenging circumstances like accidents and illnesses. Unlike the other websites on this list, GoFundMe isn’t designed for commercial crowdfunding campaigns. It is suitable for small business owners who need to raise money to overcome a personal challenges.
To launch a GoFundMe campaign, Here are the three simples steps to follow:
- Detail the amount of money you want to raise. During this phase, you’ll tell your story, which can include photos and videos.
- Next, you’ll share your campaign with your friends and family via social media, text message, and email.
- Finally, you can manage your campaign, tracking the donations and thanking donors.
- The company does not charge platform fee. However, it does have a processing fee, which is 2.9% and $0.30 per transaction.
Fundable is one of the best crowdfunding websites and offers both equity crowdfunding and rewards-based crowdfunding options for startups on the platform. With Fundable, you have the option to choose whether to raise funds through investors or by selling products and merchandise. However, to succeed with equity crowdfunding, you need all the ingredients accredited investors expect to see: a track record of growth, a solid business plan, and a pitch deck, if not more.
According to its site, startups that offer rewards typically raise less overall (under $50,000) but get more backers, whereas startups that use equity crowdfunding usually raise more capital from fewer investors.
To get started, create a profile, then choose whether you’d like to raise funds by selling your product, taking pre-orders, and selling merchandise or by raising funds from accredited investors. To sign is free but you will need to subscribe $179/month to fundraise and for rewards-based raises, there is a processing fees of 3.5% + $.30 per transaction.
Crowdcube is a UK-based crowdfunding platform and is one of the recommended crowdfunding websites because of its track record of success. It allows investors of all kinds to contribute to either a fixed income model or an equity-based model. Its website has over 20 different companies and you can invest in any of them after reviewing the profile of the company.
It is similar to StartEngine as it also turns regular people into investors. This equity-based crowdfunding platform helps you with funding all the way, getting involved in helping you establish realistic targets, effective pitch, and a rational valuation.
There is no platform fee for listing your business on Crowdcube and you’ll be charged a success fee of 7% on the amount you successfully raise, and payment processing fees also apply.
Mightycause is one of the oldest crowdfunding platforms available and its existence is as old as crowdfunding. It is one of the best options for non-profit enterprises and has raised over $600 million for campaigners since its launch in 2006.
With an easy-to-use platform that empowers ordinary people to achieve their fundraising goals, you can create a fundraising page quickly and collect donations from friends, families, communities, and people in your social media network in no time without having to meet any fund goals.
The platform has are flexible policies. There is no platform fee, the processing fee is moderate, and you don’t need to wait for any approvals before launching your campaign. Plus, individuals have the option of creating a campaign for themselves or launching fundraisers on behalf of a non-profit organization.
SeedInvest has since its launch in 2012 has helped over 250 companies raise capitals for their startups and has built a growing network of over 500,000 investors. Thus, it is ideal for you if you are looking at where to raise fund for your startup. Not only can the platform help you connect with noted investors and venture capitalists, but also help create a buzz around your new enterprise.
To launch a campaign, simply sign up, fill out an application, and complete a screening process. If you are accepted, you can create a profile and begin fundraising on SeedInvest. The duration of your campaign can take between 45 to six months, depending on your business type.
They have a 7.5% placement fee with a 5% warrant coverage or equity, plus a $0 to $10,000 fee for escrow, marketing, and legal expense reimbursements.
StartEngine is for profit crowdfunding platform that allows you to invest your money companies and early-stage startups you admire and get equity in return. Because of their apporaoch, StartEngine is one of the best options for investors.
StartEngine came onboard in 2014 courtesy of Ron Miller, Howard Marks, and Paul Kessler. It has various started ups listed on its website and you can check out the company’s profile, valuation, price per share, and number of investors to make an informed investment. Unlike most other platforms on this list, StartEngine doesn’t require you to meet any goals. The Policies are flexible, there is no platform fee, and you don’t need to wait for any approvals before launching your campaign.
To start the process click the “Invest Now” button and start the process by filling out your personal information and method of payment.
Indiegogo is one of the best crowdfunding websites available and offers both live crowdfunding campaigns and a marketplace for innovative products. Since its launch, the platform has helped entrepreneurs raise over $1 billion for more than 650,000 projects.
With Indiegogo, you don’t have to stop raising money at a specific time. You don’t also need to bother about fundraising targets or deadlines as none exists. Also, you can apply equity, offer securities, revenue sharing, and even cryptocurrency sales.
Indiegogo charges a 5% platform fee for all projects along with 3% + $0.20 per transaction for payment processing.
Crowdfunding can offer entrepreneurs a way to start raising money needed to start your business or fund business growth with access to a network of potential investors and customers. However, you’ll need to spread the awareness of your idea and convince people that it’s worth backing. Use this list of the best crowdfunding websites to find the one that works best for your project or cause.
Other crowdfunding platforms that are are the best crowdfunding websites are:
- Crowd Supply