After you have come up with a wonderful business idea and you just know that this idea hits right, sadly, you do not have the capital to bring this dream business into fruition and that is a different story altogether.
Thankfully, the world is constantly evolving and our options are not limited to banks. Recently, crowdfunding has become part of our daily lives, this is the act of raising money in little amounts from a large group of people usually through the internet.
Over time, crowdfunding has proven to be a successful way of raising money, that being said, there is a wide range of crowdfunding platforms you can choose from. However, it is necessary that you put the fees, terms, and conditions that come with it into consideration when selecting the correct one for you and your business.
The essence of this article is to assist you in choosing the one that s most suitable for you, and below are 15 crowdfunding sites you should know about for you to bring your dreams into reality:
The first site on our list is one of the famous names that ring a bell in the world of crowdfunding platforms: Kickstarter. The sole aim of this platform is to assist in bringing creative projects to life. Kickstarter as of the year 2019, has sponsored 445,000 projects in the field of music, art, and tech.
All you need to do is to set up a goal and a time duration and after it has been approved by Kickstarter, you can commence promoting your campaign to donors, friends, and family members.
It is most suitable for a wide variety of innovators.
Speaking of the costs involved, you should note that Kickstarter employs an ‘all or nothing approach, this implies that if you are unable to raise 100% of your project, no cash will be given to you. In fact, if you are unable to reach your intended goal, you have to pay a 5% fee and the payment processor will charge you an extra 3-5%.
The birth of Indigogo was prompted in 2008 due to the inability of the founders; Danae Ringelmann, Slava Rubin, and Eric Schell to raise funds to bring their ideas to life.
The good thing about this is that you are entitled to new options as a user which are fixed or flexible funding. If you are looking forward to reaching a predetermined figure, then a fixed option may seem like it for you because it is most suitable for people who are in search of any form of help they can possibly get. As for the flexible option, you will be given any money that was raised.
This platform is most suitable for entrepreneurs of all fields who want to get their projects out there especially in the early phases of growth.
As for the costs involved in both options, 5% will be required before your fund can be released and an additional 3% processing fee and $0.30 per transaction.
Most people think that this platform is tailor-made for personal causes, social fundraising, or emergencies, not knowing that businesses can use it as well. We cannot deny the fact that the donors of this platform tend to give to causalities that emancipate from within their social circles or personal network.
Interestingly, there is nothing like a sign-up fee due to the nature of this platform as well as no deadlines or goal requirements, and the owners for which the campaign was made get to keep everything that was raised.
The platform is most suitable for personal and social fundraising.
In as much GoFundMe doesn't take any fees as we stated earlier, we still have the industry-standard transaction fee which is about 3%.
We have yet another platform that functions a little differently. This platform permits donors to submit monthly contributions thereby making it an excellent choice for creatives who produce and release continuous content such as YouTube channels or podcasts.
The advantage of Patreon is that as a creative, you will build meaningful and long-term relationships with your fans, and forge predictable income.
It is most suitable for digital creators like podcasters, bloggers, and YouTubers.
It may interest you to know that Patreon offers three kinds of memberships and each of them has different pricing plans: The Lite class is 5% of the monthly revenue you earn, the Pro class is 8% of the monthly revenue you earn, and lastly, the Premium class is 12% of the monthly revenue you earn, and of course, payment processing fees beginning at 3%.
If you have come across Fundly, you will know that their motto is to ‘Raise money for anything’. This platform is used to raise money for various reasons ranging from personal health to special events. To spread your campaign far and wide, you have to create your campaign page and continuously update it to get started as well as manage it through the Fundly app.
The platform is not focused majorly on business, therefore, there is no specific time limit or goal you have to meet before you can access your funds.
It is tailor-made for schools, charities, churches, teams, including any other cause for family and friends.
As for the cost involved, every user is expected to pay a 4.9% platform fee alongside additional credit card processing fees.
The aim of establishing this platform-LendingClub is to transform the banking system so as to make credit more inexpensive and investing more rewarding, they are gradually achieving this. Over three million people have achieved financial stability via LendingClub.
Interestingly, you are free to apply for loan for any reason whatsoever, ranging from personal, medical to business needs by first signing up, then selecting a loan offer that includes terms, customized rates, and payment options.
It is tailor-made for either personal or business loans.
Generally, the costs involved depend on amounts and loan options.
CircleUp is your best bet if you fall under the category of people who have passed the developmental stage and wish to improve your flourishing business. This platform offers both credit funding and equity, and this is what makes them stand out amongst their contemporaries. In addition to this, they partner with brands such as Amazon and pride themselves in an industry-wide network.
It is most suitable for entrepreneurs who can be said to be a little more established but seeking extra funding and guidance to take their business to another level.
As for the costs involved, the fee percentage depends on the total amount that was raised.
The importance of experiments cannot be overemphasized in the scientific world, it is what backs scientists to research and unlock new knowledge, and this is why this platform was created.
This platform does not operate like when scientists are given grants from universities, because there is no overhead involved in the Experiment, however, it applies an all-or-nothing basis which means that the aim of the project must be reached, else, no one’s pledges are charged.
It is most suitable for Scientific researchers.
An 8% platform fee including processing fees of about 3-5% is charged despite the fact that starting the project is free.
We owe some sort of appreciation to Chuffed because, with this platform, you can do something about the issues that give you concern the most. But for you to utilize this platform, your campaign must have to be related to fundraising for a social, community, or political cause that has a project with a predetermined result. Furthermore, they must be approved by Chuffed before they can kick off.
It is tailor-made for Nonprofits and caused-based organizations.
Unlike the aforementioned platforms, it is the responsibility of the donors to also take care of the fees involved, in fact, contributors are encouraged to donate to Chuffed.
This platform is a mixture of social networks and crowdfunding, maybe that is why it is the largest across the globe and desires to bring impactful and relevant issues to the limelight. From the name, you will know what they represent, they are all about assisting nonprofits who concentrate on social, political, and cultural issues and still connect with like-minded people who share the same passions as you while raising funds.
It is tailor-made for nonprofits or anyone who wants to raise awareness.
No cost involved on Causes.
The interesting story about this platform is indeed intriguing, it all started when two friends, Ryan Feit and James Hon, found out how it was difficult for their fellow classmates to raise capital for their startups.
You can start by creating an application but it must be approved by a screening committee after which a team performs an in-depth investigation on your business, team, and your product/service. If you happen to be successful, you can proceed to create a profile containing all the information concerning your company and show it to investors.
It is tailor-made for high-growth, startups, and early-stage companies.
The cost involved is a 7.5% placement fee out of the total amount raised and an extra 2% processing fee.
Interestingly, this platform is now owned by GoFundMe and it channels all its energy on giving back to causes, charities, and personal fundraisers. Numerous charity organizations utilize this wonderful platform to raise money for social initiatives and it is easy to use because there is nothing like a deadline or penalty. The good news is that they offer personal customer support which is an added advantage.
It is most suitable for Best races, corporate philanthropy, personal funding, and charities.
Fortunately, there are no costs involved.
Talking about people who have had a first-hand experience of what it means to raise funds, it should be WeFunder because they themselves have raised cash to launch their platform.
There are numerous beautiful things we can say about this platform beginning from the number of investors they have (about 245,360 investors on WeFunder), little wonder why most campaigns take anywhere from one to three months to be achieved, also, you can only be charged when you have reached your goal, therefore, you have nothing to lose on this crowdfunding site.
It is tailor-made for different industries ranging from food, software, entertainment, tech, and so on, start-ups, and business types.
7.5% of your investment is the required cost.
14. Seed & Spark
This platform is tailor-made for filmmakers because they recognize that the film industry is a tough one to crack. Truthfully, every good movie worth watching takes a good amount of cash to bring it to reality. Their track record speaks volumes, they can boast about an 80% success rate. Each movie project is assigned crowdfunding classes, crowdfund rallies, personal feedback, and access to distribution choices.
Moreover, you can directly watch movies and shows on their site if you are a fan.
As we earlier said, it is most suitable for filmmakers.
A 5% platform fee is required, then the processing fees include $0.30 and an additional 2.9% of the actual pledge.
This platform is reliable, fast, and trusted by millions of people across the world irrespective of if you are funding an existing project or just starting yours. You can kick off by creating your page, sharing it across your community, and accepting donations using credit/debit cards. Interestingly, you can keep everything you raise on this platform and you can access the money at any time whether the campaign has been completed or not.
It is tailor-made for anything pertaining to personal, emergency medical treatments, and travel adventures.
Transaction fees begin at 2.9%, then, a $0.30 handling fee is needed for every donation made.
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