Crowdfunding Platforms are a relatively new practice of funding in which instead of seeking a loan from a bank or a financial institution or angel investors, a company funds its new project by raising money from a community of people who each invest a fixed amount, generating a large fund, for the particular project.
The crowdfunding investment technique can be used by any company, new or old, at any stage of the project development and whenever the need for financial support arises. It is usually limited to small funding requirements.
“Crowdfunding is creating a new public market which connects common people with investment opportunities that used to be accessible only by the very wealthy.” – Rodrigo Nino (Founder & CEO of Prodigy Network)
Crowdfunding, like crowdsourcing, is a way of accepting money/information from people related to a particular field.
Crowdfunding is probably the best way for a startup or a small company to raise funds for a new project.
That and the internet advantage make it an obvious choice for modern business funding.
However, finding people interested and compelled to invest in your idea/project is not easy. In fact, this is the reason why many companies avoid this funding option.
Thankfully, several crowdfunding websites can help you find the people for your funding needs.
In this article, we will talk about some of these platforms that provide crowdfunding for startups.
A Crowdfunding platform is a website that provides you with a central place to share your ideas and invite people interested in investing in that idea.
It also lets you raise and manage to fund your projects. One thing you should know about these platforms is that they are not free.
Most of the crowdfunding investment platforms out there would take a commission of your funds. Depending on the website, the commission may range from 2.5% to 15 %.
If you’re an investor wondering about crowdfunding investment return, you should talk to an expert.
Top 11 Crowdfunding Platforms of 2024
Here are 11 crowdfunding platforms that can help you find the people for investment in your startup or a new idea/project.
1. Kickstarter
Kickstarter has been providing crowdfunding for startups for a long time now. It has even become a general term for online crowdfunding.
Kickstarter accepts contributions in the form of pledges which are given by the general public to support a new idea, project, or invention.
You can raise funds for almost every type of creative idea, such as a movie, a book, an album you want to develop, or a futuristic invention of yours.
However, the funding is strictly for an idea or project and not for buying equipment or resources or even helping an NGO.
Users can start taking financial pledges on their new projects and keep the funds only if they reach the targeted goal.
Kickstarter allows you to raise funds in a range of industries, including arts, music, design & tech, film, publishing, and more.
2. RocketHub
If you are looking for an equity crowdfunding platform, this is the place for you. It provides a perfect platform for entrepreneurs and new businesses to raise capital for their upcoming projects by selling shares of an unlisted company.
It is not easy to find buyers for your company shares when your business is not even listed on a stock exchange.
This is where RocketHub, which is arguably one of the best equity crowdfunding platforms in 2024, comes in.
They have a community of investors with whom you can connect in the ELEQUITY ROOM to share your idea and find those who might be interested to fund it, in exchange for a sharing in the company.
The crowdfunding platform works more or less similar to Kickstarter, except for the difference in allowed industries. For instance, Indiegogo allows fundraising for nonprofit projects and organizations as well.
It also supports Flexible Funding, where the organizer gets to keep the funds raised by them even if the target is not met.
This is a very useful option since not all of the projects on these online platforms successfully meet their crowdfunding goals.
Indiegogo is a better crowdfunding investment option when you are looking for these specific services, otherwise, go for Kickstarter.
4. Crowdfunder
The Crowdfunder gives you access to a host of angel investors and venture capitalists who are there to invest in every kind of project with a realistic idea.
If you are looking to raise funds by selling debt or equity in your company, this is the perfect equity crowdfunding option for you.
If your project idea is worth their time, you can easily manage to find reliable investors through this platform.
5. GoFundMe
It is more personal than a professional purpose crowdfunding platform, where anyone can ask for funds for any personal emergency.
It is like borrowing 100 bucks from your friend with the promise to return it in time.
However, this crowdfunding platform can also be used to raise funds for short-term and small projects. If you are looking to get money for an emergency cost that you cannot fund by yourself, this is the platform for you.
6. StartEngine
StartEngine is a leading equity crowdfunding platform based in Los Angeles, California, founded in 2014 by Howard Marks and Ron Miller. The company aims to democratize access to capital, enabling startups and small businesses to raise funds directly from the public. By leveraging the JOBS Act, which allows companies to solicit investments from both accredited and non-accredited investors, StartEngine has opened up new avenues for entrepreneurial financing, bypassing traditional venture capital and banking systems.
One of the key features of StartEngine is its focus on equity crowdfunding. This model allows everyday investors to buy shares in early-stage companies, providing a unique opportunity to participate in the growth potential of innovative startups.
7. Kiva.org
Kiva is a special kind of crowdfunding platform that works on the mechanism of lending-borrowing.
There are no angel investors, but concerned people who help others by lending micro amounts for their startups and new projects.
The platform is accessible all over the world and can be used for funding specifically in micro and small business spaces.
The funds you can borrow or lend have virtually no limit. The loan you make is returned back in time so that you can help others by using that money.
8. Seed & Spark
Similar to music funding, this platform is particularly designed to fund movie projects. As you can imagine, the platform lets moviemakers share their ideas and get funds to fuel their projects.
The funds can be raised for almost every kind of movie, including documentaries, comedies, dramas, and even theatres.
If you are investing in a movie through this platform, you can also analyze your crowdfunding investment return by watching the movie in which you’ve invested.
9. AngelList
AngelList is more than just the best crowdfunding platform. It lets you find investors and lenders for a new project by simply writing an application. But that’s not all. The platform is also useful if you are an investor looking for a nice place to invest your money.
Moreover, you can use the job portal feature of AngelList equity crowdfunding to find yourself a nice job at any of the thousands of companies on the website, just in case your startup idea doesn’t pan out.
10. Fundable
This is an equity crowdfunding platform for non-accredited investors.
If you are looking to raise venture capital for your new project, you can start by posting your business idea here.
Investors can fund your project in exchange for equity or shares in your company.
However, the transaction cost, as well as the membership fee, is high enough to make you think twice before joining the platform.
Also, you do not get anything if your crowdfunding campaign does not meet its goal.
So, that’s it. This list can help you find the right platform for your next project crowdfunding, no matter what scale and for which project. Investors can also benefit from these options for connecting with potential investment opportunities.
11. Patreon
It is one of the best membership crowdfunding platforms in the USA for entrepreneurs, high-growth startups, and creators to provide subscription content service to users and get paid for it.
No matter who you are – an artist, musician, writer, or an emerging kickass startup, Patreon operates as a meaningful revenue stream for you and allows you to get rewards for your original content.
More than 350 million USD has already been reaped by startups and creators on Patron.
Also, the average monthly fees paid by subscribers to Patreon creators are more than what they pay on Netflix or Spotify.
So don’t wait, come up on Patreon to get funds for your next big startup project.
New to Crowdfunding?Raise Money for Anything With Us:
Amit Gupta, who is the CEO and Founder of SAG IPL, founded this company with the vision to become the #1 provider of quality-driven and cost-effective blockchain marketing and development services in the world. As a Chartered Accountant with a keen interest in software and web development, he manages a team of over 200 professionals, comprising designers, developers, and marketers, committed to delivering top-notch web, software, mobile, and blockchain solutions to clients worldwide.
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