Funding is one of the biggest challenges entrepreneurs face as they look to establish, grow, and scale their operation. Thankfully crowdfunding sites have come along to give individuals and businesses of all sizes the opportunity to raise the funds they need when traditional methods are no longer an option.
The growth of crowdfunding in recent years is responsible for funding thousands of ventures and raising billions of dollars. However, not all crowdfunding sites are created equal.
There are now many different types of crowdfunding sites addressing specific industry sectors to better serve this need.
Below you will find 18 crowdfunding sites, organized by specialty to get you off the ground. Commissions, fees, and terms vary or change from time to time, so always double check the “fine print,” as the saying goes.
Indiegogo allows you to raise funds for anything. You can choose an all-or-nothing option or an option that allows you to keep funds you have raised even if you haven’t met your goal.
They charge a 3% – $25 transaction fee and either 4% or 9% depending on if you meet your goal or if you choose to walk away with funds without meeting your goal. They also offer non-profit discounts on their fees.
Another general fundraising site is GoFundMe. This is a funding site popular with individuals who need money for a wide range of purposes.
Campaigns have been launched for everything from short-term projects to medical emergencies on the site. The site charges a 5% commission and a 3% transaction fee.
Fundly allows you to raise funds even from your mobile device. It is socially integrated and lets you post blog updates on your fundraising page. The platform’s monthly fee schedule is based on how many campaigns you want to run at once (one at a time has no monthly fee though there is a 4.9% commission and 3% transaction fee).
Kickstarter, probably the best-known crowdfunding site, is an all-or-nothing crowdfunding platform. (You must reach your fundraising goal or you receive no funds.) The site is for creative works in areas including technology, food, fashion, etc. You set your goal and offer an incentive. If you reach your goal, there is a 5% project fee and a 3 – 5% transaction fee.
FunderHut is a crowdfunding service aimed at small businesses, communities, non-profits and individuals. Their all-or-nothing campaigns have a 5% fee if the goal is reached and a 3% payment processing fee. If you choose the “variable” plan, you pay 7.5% if you do not meet your goal.
Rockethub allows you to find other funding if your goal is not met. There is a 4% commission for successful projects or 8% for those that don’t meet their funding goals, as well as a 4% transaction fee.
Focusing on entrepreneurs and small businesses, Peerbackers allows you to find funding from your friends in exchange for rewards. They charge a 5% “success fee” and a 2.9% transaction processing fee.
Funding Circle US
Equity Crowdfunding Sites: The Investor Owns a Share of Your Company
You have the option of offering rewards or equity with Fundable. The service operates its own marketing platform and you set minimum donations for rewards. The minimum equity commitment is $1000. There is a monthly fee during campaigns.
You might not guess from the name but MicroVentures helps startups and other businesses generate $100,000 – $1,000,000 in capital in the entertainment, tech, social, and gaming sectors.
CircleUp is looking for innovative retail and consumer companies. Your company needs to be able to show it can turn a profit in 1 – 3 years to get accepted.
For a variety of equity options, try EarlyShares. Terms vary based upon the options you choose.
Niche Crowdfunding Sites: For Special Fundraising Needs
If you need funding for app creation, pitch your idea to Appsfunder and reward investors or offer them return on their money. This is an all-or-nothing funding website. The service charges 8% commission on completed campaigns, 3% transaction fee, and 5% of revenue when the app is finished.
VentureHealth is an equity-based funding platform that specifically seeks entrepreneurs building technology businesses in the health sector. The service does not allow fundraising for research, but does facilitate funding of biotechnology, healthcare services, medical devices, digital health, pharmaceuticals, and diagnostics. VentureHealth charges 20% carried interest on profits.
Authors can find people to fund their books at Unbound in exchange for a copy of the book and possibly a goodie bag upon publication. You must pitch your book to them.
TechMoola offers reward crowdfunding for innovation and technology. The site charges a 10% flat rate for funding goals once met, 15% for unmet goals less than $25,000 and 20% for unmet goals over that amount.
Slated is a niche crowdfunding resource for film that brings industry, filmmakers, and investors together.
Money Photo via Shutterstock
More in: Crowdfunding, Popular Articles