Crowdfunding sites are a way for small businesses and startups to raise money in exchange for equity, rewards, debt or sometimes nothing at all. The digital era has made raising funds for your business idea, nonprofit cause or personal needs easier with the use of online crowdfunding platforms.
Besides, people have raised more than $34 billion worldwide using these crowdfunding sites. These are easy to use tools that provide a smooth experience for both small businesses and startup businesses. So, crowdfunding your next business venture can be a fast and easy way to raise money for your small or startup businesses.
There are many sites where people can invest in your project, idea or business. Crowdfunding sites are all over the internet these days. We have selected 10 Best Crowdfunding Sites for startups to get you the best crowdfunding sites for your needs.
Top 10 Recommendations of Best Crowdfunding Sites for Startups
At the top of our list, we will talk about Kickstarter. It helps creators connect with the resources they need to bring their ideas to life. The company has helped over 15 million artists, musicians, filmmakers, designers and other creators. It raised over $3.7 billion to successfully fund more than 143,000 projects Worldwide.
Funding is all or nothing. So you must meet the goal you set within the allotted time or everyone gets their money back. Your project also needs to fall under one of Kickstarter’s available categories. It includes arts and crafts, fashion and design, film and photography, games, and technology. It is free to create a project campaign on Kickstarter. But if you successfully get funded a 5% fee is owned from your collected funds. You will also get charged processing fees between 3-5%.
Next on our list, we will talk about Indiegogo. It does not just offer live crowdfunding campaigns, but they also have a marketplace for innovative products. This site helped entrepreneurs raise over 1 billion dollars for more than 650,000 projects. It is a fine place for startup businesses to find out quickly whether your idea has potential.
Indiegogo is an accredited business that has the BBB with an A+ rating. With this platform, you do not have to stop raising money at a specific time. There are no fundraising targets or deadlines and you can apply equity, offer securities, revenue sharing and even cryptocurrency sales. Indiegogo charges a 5% platform fee and also a 3% to 5% third-party processing fee for all projects.
Then we will talk about GoFundMe. It has become one of the largest Crowdfunding sites available online. It has raised more than $9 billion from over 120 million donations. Its success and simplicity help make it the best platform for individuals, startups, and also for charitable causes.
There are two most significant upsides to GoFundMe. Firstly the zero funding fees for personal causes based in the US. Then the ability to keep all funds you can raise. Just be wary that likely due to the massive scale of the site, GoFundMe campaigns have a reportedly low success rate. So, you may need to work extra hard to get people to see and invest in your project.
Following our list now we will talk about Fundable. It takes a different approach than our previous recommendations. It charges a flat monthly subscription. The problem is you have to pay the fee whether you are successful or not. So Fundable is best for startups that have a lot of confidence in their ideas.
Fundable’s flat fee makes it a great deal for many successful crowdfunding campaigns. If you set a goal of just $3,580, that fee comes out to about 5% of what you raise. If you make it to $10,000, the fee is less than 2%. But for starting you also have to give a $179 monthly subscription fee and have no automated unsubscribe options.
Next, we have Patreon. It has more than 200,000 creators and helped these professionals bring in $2 billion in funds. It allows artists, musicians and creators to get paid by running a membership business for their fans. It provides a meaningful revenue stream. Fans can pay you a subscription amount of their choosing in exchange for exclusive experiences and contents.
Patreon has 3 plans, the lite plan takes 5%, the pro plan takes 8%, and the premium plan takes 12% of successfully processed payments. There is also a payment processing fee each time a payment is processed. It is usually batched at the beginning of each month. You can also expect payout fees charged for moving funds from your creator balance to your bank or PayPal account.
Then we have Chuffed on our list. It is the best choice if you have a social cause organization aimed at helping animals, your community, or the environment. Also, it is best for nonprofits and cause-based organizations exclusively. Their most successful campaigns raise an average of $7,000. Nearly 8,000 campaigns have successfully raised $18 million collectively.
Chuffed donors pay your processing fees. For example, a donation of $1000 would require a $30 fee. And all donors are encouraged to make a small donation to Chuffed on top of that. So, it is easy to get funds using Chuffed.
Next, we have Republic on our list. As an equity-focused crowdfunding platform, Republic is the newcomer on the block. It is not for everyone with a highly demanded selection of companies. Republic recognizes that many startups success depends on their ability. It also helps to get funded easily.
Its funding portal is SEC-registered and also members of FINRA. Republic’s 95% success rate for selected campaigns makes it one of the most enticing platforms for connecting with willing investors. The fee is 6% for the startup + 2% Crowd SAFE fee and also a 3.5% per transaction.
Following our list now we will talk about SeedInvest. It is founded by MBA graduates and experienced investors. SeedInvest started as a way to give technology startups access to capital from people willing to make sizable equity investments. The platform allows only US-based businesses and employs a picky selection process.
If you make the cut, you will get access to a non-accredited for campaigns starting at $100,000. SeedInvest’s biggest drawback is its expensive 7.5% placement fee and a 5% equity fee on all successfully funded campaigns. Still, the site has a growing base of investors and successful companies, as well as a positive reputation.
9. Crowd Supply
Next, we have Crowd Supply on our list. Its mission is to bring original, useful, respectful hardware to life. This site is dedicated to helping entrepreneurs from funding to delivery, and 100% of funded projects have been delivered to backers. They have got a great success rate. Almost 70% of launched projects have achieved a funding. The average amount raised per successful project is $66,000.
Crowd Supply has two variants of the plan. The Basic plan is 5% of gross campaign sales that not including payment processing fees. On the other hand, the Standard plan is 6-15%. Features differ per plan and include review unit management, media asset creation, and it also includes a dedicated PR team.
Lastly, we will talk about Wefunder. It is a crowdfunding site that has helped fund 451 startups and raised over $164.5 million. They are the self-described Kickstarter for investing. The difference about this crowdfunding site is it lets people invest in your company with small ownership stakes.
WeFunder allows you to raise between $50,000 and $50 million from investors. It is free to create a profile. WeFunder does not charge management or transaction fees. Administrative fees are charged to investors which cover all the costs of operating this site. Right now, this site is only available to businesses and startups located in the United States.
So these were our entire pick for the top 10 best crowdfunding sites for startups and small businesses. We hope that this article will help you choose the right crowdfunding sites for you to start right away. If you need any further information you can always check their website.