Crowdfunding platforms are a way for small businesses or startups to raise money and get quick access to cash. Crowdfunding allows an entrepreneur to raise money in exchange for equity, rewards, debt, or nothing at all. Individuals or small businesses can take advantage of this fundraising model to get early-stage support for their ideas, products, and creative projects.
We recommend you take the time to investigate if crowdfunding is the right option for you and which platform will be the best fit. Remember to keep an eye out for fees and all-or-nothing sites. An all-or-nothing site means you don’t get to collect any funds unless your campaign targets are met.
Here are seven of the top crowdfunding platforms you can use to grow your company:
Kickstarter is a rewards-based donation crowdfunding platform for creative projects. It is a very popular and successful platform that has been helping companies raise money since 2009. It’s not for charities or personal financing needs, but is known for helping tech and innovative entrepreneurs fund their projects. This is an all-or-nothing platform where you don’t get your funds unless you complete your campaign.
Indiegogo is also a rewards-based platform that focuses on creative projects specializing in tech products. This platform provides expert support and exclusive partnership even after your campaign has ended. Indiegogo has pre- and post-campaign tools and a wide range of perks that you can offer your donors.
GoFundMe is a donation-based crowdfunding company famous for charitable initiatives and personal fundraising. However, businesses can take advantage of this platform as well, especially service-based initiatives. Statistically, one in ten campaigns is fully funded on the site
LendingClub is a debt-based crowdfunding platform that provides $5k to $500k loans. LendingClub offers small business loans with one- to five year terms, low interest rates, and fixed monthly payments. To qualify, your company needs to have been operational for at least a year, your annual sales revenue must exceed$50,000, and the applicant must own at least 20% of the business.
CircleUp offers flexible capital solutions. They are focused on growing and scaling consumer brands. They offer equity and credit financing and a network of institutional investors, retailers, industry experts, and entrepreneurs that provide resources. CircleUp gives members access to Helio, CircleUp’s proprietary machine-based learning technology for consumer market insights.
SeedInvest is the largest equity crowdfunding platform in the U.S. You can earn compensation in cash and equity once your campaign closes. SeedInvest has more than 450,000 investors across a wide range of industries. They can help raise awareness among venture capital firms and angel investors. SeedInvest only approves highly vetted startups that have a proven and successful track record.
Fundable offers both reward-based crowdfunding and equity crowdfunding. Their rewards program is recommended for consumer-facing companies aiming to raise up to $50k. Their equity program is recommended for companies seeking $50k to $10M in funding for product, service, or B2B businesses. Your company must also be registered in the U.S.