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Crowdfunding has become a popular way to finance all sorts of creative and entrepreneurial ventures. Kickstarter has quickly become the most popular crowdfunding site, but there are several other sites to choose from.
Below is a breakdown of the top 10 crowdfunding sites you can use to fund your small business.
1.- Kickstarter:
Kickstarter is the leading crowdfunding site on the web and is the most popular site to fund creative business ventures. The advantages of using Kickstarter range from developing brand recognition to offering higher project visibility, since Kickstarter currently receives the most site traffic. However, Kickstarter only accepts creative projects that are based in the U.S. or UK.
2.-Indiegogo:
Available to entrepreneurs worldwide, Indiegogo offers increased flexibility to small businesses searching for project funding. In addition, Indiegogo requires no application process and may be used to finance a diverse range of projects. The only real downfall associated with this site is that it may be more expensive to use if you don’t reach your funding goal.
3.-RocketHub:
As a result of its partnership with A&E Project Start Up, this crowdfunding site provides small businesses with unique visibility for their projects. Although this site does not rank as high in site traffic as Kickstarter and Indiegogo, RocketHub offers a user-friendly interface that’s simple to navigate. Additionally, the interface provides users with valuable tools to build more meaningful projects and businesses.
4.-FundRazr:
FundRazr provides funding for a wide variety of projects, ranging from personal causes to nonprofit and entrepreneurial ventures. This versatile site also features a large social network to help you connect with others in your network and boasts inexpensive transaction costs, transferring funds directly into your PayPal account. Unfortunately, because less than 5 percent of projects are categorized as entrepreneurial/creative ventures it is more difficult to connect with entrepreneurs and investors.
5.-GoGetFunding:
This London-based crowdfunding site can also be used for funding a variety of projects, such as covering expenses for a pet’s medical bills or financing a short film. Anyone can post a project to seek funding, though as a result there are fewer business-related projects.
6.-Crowdfunder:
Crowdfunder blends online and offline crowdfunding and collaborative efforts into one site, incorporating donations and investment project funding into their platform. Although this site focuses on ensuring the long-term growth of a business, this crowdfunding resource is designed to fund for-profit companies only.
7. Crowd Supply:
This app’s mission to “bring original, useful, respectful hardware to life” has come to fruition with 70% of its launched projects being successfully funded (2x more than Kickstarter). Also, the average amount raised per successful project is $66,000 (6x more than Kickstarter for comparable projects).
There are multiple Crowd Supply payment plans to choose from. The Standard Plan is 5% of gross campaign sales not including processing fees, the Guided play is 5-10% and the Custom plan 10—15%. Features differ per plan and include campaign management, media asset creation and a dedicated PR team.
8. Experiment:
Funding scientific projects, Experiment backers fund projects that “push the boundaries of knowledge” like dinosaur fossil evacuations to the historical study of medieval monasteries. This app provides funding to scientists without the overhead costs they would have to otherwise face from university grants (which can be 50-60%).
While it’s free to start a project, when you reach full funding, Experiment charges an 8% platform plus payment processing fees between 3-5%.
9. Fundable:
Fundable allows businesses to create a profile and choose from different plans in which they will be funded by accredited investors.
It is free to create a company profile and $179 per month to fundraise. There are no success fees, but for rewards-based raises, there is a processing fee of 3.5% + $.30 per transaction.
10. Seedinvest:
For high-growth, professional and early-stage companies to raise either preferred equity or convertible note funding, Seedinvest is for you. Provide information like company valuations to be properly funded.
Once your application makes it through the screening committee and conducts your due diligence, your profile will be exposed to the platform. You should expect the process to take a minimum of 60 days to complete.
The 7.5% placement fee charged on the total amount raised is only paid on the successful completion of your campaign. Also, you can expect a 5% warrant coverage based on the amount raised and up to $10,000 in due diligence, escrow, marketing and legal reimbursement expenses.
Bonus Option: Invoice Factoring
Crowdfunding is a new and innovative way to finance your business. Invoice factoring is another great option that helps your business grow by increasing and stabilizing your working capital. Popular and effective, invoice factoring can provide same-day funding to meet your business needs. Accelerate your cash flow by requesting a free factoring quote today.
