Crowdfunding your upcoming business venture can be a quick and easy way to raise capital. Here are some of the top crowdfunding platforms for your business!
Have you ever wondered how businesses raise funding to get started? It is frequently with the assistance of crowdfunding platforms. Crowdfunding is a method for companies to raise the initial financing for their venture. It is a process in which internet users generate funding for initiatives they believe are promising. Their individual contributions may be minimal, but with a sufficient turnover, they can assist you in scaling your idea into a successful firm much sooner than you might imagine. If you are looking to raise funds and need assistance, the top five crowdfunding platforms are listed below.
- Kickstarter
This crowdfunding site, founded in 2009, assists technology and creative entrepreneurs in raising initial capital for their ideas. The company had raised over USD 5.6 billion in more than 197,425 projects as of January 2021. Those interested in generating funds using this platform must define a goal and a time frame for completion. It is an everything-or-nothing platform, which means you must accomplish the set objective within the time limit, or your money will be returned. In addition to the payment processing fees, Kickstarter charges a 5% fee.
- Crowdfunder
This Los Angeles, California-based startup, founded in 2012, is an equity crowdfunding platform that assists in the fundraising of high-growth ventures. It has over 130,000 investors and entrepreneurs on its network. According to the company, it has a network of over 12,000 individual and institutional investors. This crowdfunding platform has so far funded approximately 60 deals, with an average deal size of USD 1.8 million. Crowdfunder has three pricing options: free, starter (USD 299/month), and premium (USD 499/month).
- Indiegogo
Since its inception in 2008, this crowdfunding portal has helped to support over 800,000 ideas. The platform has over 10 million visitors each month, and approximately 19,000 campaigns are listed on Indiegogo on a regular basis. Users can promote their Indiegogo campaigns on other networks like Facebook and Google. It charges a 5% platform fee and a third-party processing fee ranging from 3% to 5%.
- GoFundMe
This crowdfunding tool, founded in 2010, assists people in raising funds for nearly any purpose, from personal healthcare expenditures to keeping local companies afloat. It is not an everything-or-nothing fundraising website, so users keep the money they raise. Every donation is subject to a 2.9 percent processing fee and 30 cents. It has raised USD 24.2 million for the Time’s Up Legal Defense Fund and USD 11.8 million for the Las Vegas Victims Fund through successful campaigns.
- CircleUp
This San Francisco-based startup, founded in 2012, provides financing and services to early-stage consumer brands. Furthermore, it provides both stock capital and credit financing. Canaan Partners, QED Advisors, GV, Collaborative Fund, Union Square Ventures, former Goldman Sachs, Stanford Endowment, and Capital One are investors in this crowdfunding platform. Charges are determined based on a specific instance by the platform.
Wrapping Up
Today, popular crowdfunding websites are an absolute necessity.
Crowdfunding websites allow people to fix their own or others’ financial difficulties and interact with people worldwide.
Crowdfunding has its risks, but in this hyper-connected world where regional distances and inside ties are becoming less significant, it exposes brilliant ideas to many people resulting in big rewards for everyone. Startups, product launches, social causes, investors, and various other issues receive sufficient finances. Using a crowdfunding platform to collect initial funds is an excellent way to fuel your concept and achieve your goals.