Crowdfunding has changed the modern business model, and knowing the top Crowdfunding Platforms is the first step to determine which site is the right one for your project. New crowdfunding platforms launch literally every day, and the list below represents only our selection of the ones that have the best track records to fund businesses and have been around long enough to build traction and a good reputation. However, there are hundreds of reputable platforms, and are listed in a directory of crowdfunding platforms.
Since Kickstarter’s launch in 2009, more than $2 Billion has been raised for over 100,000 projects, on an “All-or-Nothing” basis. Kickstarter focuses on creative endeavors including design, the arts (film, publishing, music), gaming and technology. While Kickstarter can't be used to fund businesses per se, it does accept products and had many remarkably successful campaigns with over a million dollars in funding. The Kickstarter model attracts eager backers who can pledge for specific rewards, such as early access to or a discounted price of the product, among other creative gimmics. Submissions are rigorously reviewed, who charge a competitive 5% fee for successfully funded projects.
Originally launched 2008 with a focus on film, Indiegogo pivoted to include funding for literally anything and is becoming known for financing personal and cause-related campaigns. The main difference to Kickstarter is that you get to keep the money pledged if your project fails to meet its goal. It also accepts all projects without review. However, the disvantage is it that is has no consumer protection. While its success fee is 5 percent, it does charge one of the highest fees in the industry -- 9 percent -- if you don't meet your goal.
Initially launched with the arts in mind, it expanded to include science, education, business and social good projects. It gained traction in the sciences with its annual SciFund Challenge, an online effort to fund science projects. The site also has a partnership with A&E called Project Startup, where the network selects RocketHub projects to feature on air and online and provides substantial seed funding. RocketHub takes an 8% cut of projects that fail to meet their goals and 4% of successful campaigns.
Founded in 2010, it allows people to raise money for events ranging from life events such as celebrations and graduations to challenging circumstances like accidents and illnesses. Advertised as the world's number one personal fundraising website, GoFundMe has raised over $400 million, including more than $3 million for victims of the 2013 Boston Marathon bombings. While it thrives off of these personal goals and relief efforts, the site also makes room for creative projects and attracts mostly music and films. GoFundMe deducts 5% from each donation and charges a 3% processing fee.
If you’re focused on building the next hottest app, there’s a site for that. Appbackr is exclusively for funding mobile apps that are currently on sale or still in development, and backers can also get a slice of the profit. Backers, or rather backrs, can invest in a product by buying as many copies of the app as they so chose on the appbackr marketplace. Once the app gets sold on a mobile app store, backrs profit off of the price difference between their original purchases and the final selling price. There's no fixed deduction; instead, it depends on the app price and platform.
Help fund the next wave of scientific research! Experiment is a platform for funding projects, conducting research, and sharing results with the public. It’s an open and democratic way to initiate new discoveries and is for scientists from all backgrounds, topics, and skill levels. Their team reviews each research proposal to ensure it meets several criteria. Like Kickstarter, it is based on an all-or-nothing funding model.
While Kickstarter and Indiegogo draw people looking for initial fundraising rounds and backers who can pledge for rewards, Crowdfunder allows startups and small businesses to raise funds by selling equity, debt and revenue-based securities. Through these more formal seed or Series A rounds, Crowdfunder projects attract angels and venture capitalists who can sign up as accredited investors on the site.
Crowdcube started as an equity crowdfunding platform that allowed people the chance to buy equity in unlisted UK registered businesses in exchange for their investment. It enables anyone to invest alongside professional investors in start-up, early stage and growth businesses through equity, debt and investment fund options. As of June 2014 Crowdcube offers investors two types of investment opportunities, equity (a stake in a company) and mini-bonds (lending money).
One of the first global, community-based platforms dedicated to entrepreneurs and investors, Grow VC enables great ideas to get visibility with the right investing audience and early support. It introduced many new digital finance services for investing, lending, hedging and portfolio management. Entrepreneurs can connect with experts, funders, team members, new customers and partners to realize their ideas.
EquityNet has operated the largest business crowdfunding platform since 2005. The multi-patented EquityNet platform has been used by over 45,000 individual entrepreneurs and investors to plan, analyze, and capitalize privately held businesses
AngelList takes more of a social networking approach to crowdfunding and provides a platform for startups, investors and job seekers. Entrepreneurs can view the profile pages of investors that reveal their interests and other projects they have invested in. Companies can also list their fundraising accomplishments for accredited investors affiliated on the site to see. The network recently launched Syndicates that allows investors to partner on funds, and AngelList takes a 5% cut.
MicroVentures calls itself an "investment bank for startups." It conducts due diligence on startups and then, if approved, helps raise capital from angel investors via its SEC-approved online platform, matching startups seeking capital with angel investors looking to invest from up to $3,000.
Crowdrise specializes on charitable giving and is a leader in event fundraising, drawing the New York Marathon, Boston Marathon and the Ironman Race Series to its platform. One special feature is Crowdrise Impact Points. With each donation, projects receive points that help to promote the campaign to the front of the site. Campaign leaders can also cash in the points for Crowdrise gifts, such as T-shirts and even a cape. For free accounts, the site takes a 5% cut, or for a monthly fee of $49 or $199 that lowers to 4% and 3%, respectively.
StartSomeGood provides a funding platform exclusively social good initiatives, no matter if it's nonprofit, for-profit or unincorporated. All campaigns have to meet their so-called tipping point in order to receive the funds, but they do not have to reach their listed ultimate goal. The company charges the standard 5% fee. StartSomeGood also requires that projects offer backers rewards, but it can simply be an acknowledgement listing or a thank-you note.
Based in Canada, FundRazr is another crowdfunding site dedicated mostly to personal causes and charitable campaigns. It started out originally as a Facebok app and continues to offer that platform. For FundRazr, crowdfunding is less about connecting to accredited investors and entrepreneurs, and more about others seeking funds from people in their social network -- or others if you're lucky enough to be featured on the site's front page.
Lending Club is one of the leading online lending platform that enables borrowers to obtain a loan, and investors to purchase notes backed by payments made on loans. It lends up to $33,000 towards consumer debt. The company claims that roughly $16 billion in loans had been originated through its platform up to end of 2015.
At its inception, Ethereum has self-crowdfunded more than $21 million in 2014 within one month. While its purpose is to build dedecentralized apps via smart-contracts, you can create a contract that will hold a contributor's money until any given date or goal is reached. Tokens can be later used to keep track of the distribution of rewards. Several crowdfunding applications are currently build based on the Ethereum protocol such as WeiFund.