You must have come across the term crowdfunding at one pointor the other. It is the concept of raising money for a project, or a causethrough large groups of people online. Rather than fund a cause or a projectall by yourself, crowdfunding allows you ask the general public for financial aid.
Companies and renowned organizations have used it in the past, and alsoprivate individuals who have felt the need to raise a large amount of money. Companies and organisations that are just starting out or setting up always need a financial boost to get things going. If your idea is untested and you are not prepared with business plans and polished pitchs which are needed for an angel or venture capitalists then using a crowdfunding site is ideal for you.
Crowdfunding is where you get a lot of people (the crowd) to support your idea, rather than finding one person to come up with everything you need, the crowd support you by contributing small amounts because they like your idea and want you to succeed.
There isn't any equity or stake in the business or venture on offer, just a way for people to help you make your dream or project turn into a success.
Companies and renowned organizations have used it in the past, and also private individuals who have felt the need to raise a large amount of money.
To have a successful crowdfunding campaign, you need to pitch your idea in a way that people are encouraged to donate to your cause. If people aren't satisfied, or convinced, you might have to find another option of raising funds.
Interestingly, there are no stakes involved when you use crowdfunding platforms. However, most of these platforms charge a small percentage for each donation. Crowdfunding is in fact a great way to turn you rdreams into a reality.
To get started, here are 10 of the best crowdfunding platforms to choose from:
1. KICKSTARTER: Several individuals and firms have consistently used Kickstarter, and this has caused this platform to be one of the biggest and most respected names in theworld of crowdfunding. They are particularly known for helping firms in thetech and creative industries. Over the course of more than 10 years, Kickstarter has raised over $4 billion. Over 155,000 projects have been completely funded since this platform began in 2009.
Boasting of an easy-to-use interface, Kickstarter however does not allow for withdrawal of funds unless you reach your target. This means that until your target is reached, you won't be able to get your funds. Also, your funder's credit card will not be charged until the goal has been reached. For every transaction, Kickstarter charges 5%. After your target has beenreached, you have to wait for 14-days to withdraw your funds.
2. CAUSES: Today, Causes is the largest campaigning platform that has its focus on social and political needs. Causes prides itself as a platform that champions socialissues and political change. If you need to raise funds to save the lives ofrefugees, or give disadvantaged children a chance at education, then Causes is for you. The platform has more than 186 million users from 156 countries acrossthe world.
The website has categories like animals, the environment and human rights. Asides funding, you can find individuals who share your passion.
3. GOFUNDME: Thereis a huge chance you have heard of GoFundMe, and an even higher chance that youhave seen one or two campaigns on the internet. GoFundMe is perfect for emergency situations, or charitable cases. It can also be used for business purposes. GoFundMe charges a 2.9% processing fee, and 30 cents for each donation. On this platform, you can withdraw whatever amount you raise, whether it is complete or not. Plus, there are no fees involved for personal campaigns based in the United States of America.
Have you heard of the Las Vegas Victims Fund which raised $11.8 million? Or the Time's Up Legal Defense Fund which raised $22 million?Both campaigns were completed on GoFundMe.
4. INDIEGOGO: Indiegogois perfect for campaigns that are in the field of tech and innovations,community and creative projects. Indiegogo allows individuals to withdraw theirfunds even if it has not been concluded, unlike Kickstarter. Indiegogo has two options: fixed and flexible option. In the flexible option, you can get yourfunds whether you meet your goal of not. The fixed option on the other handallows all your donors get their money back if you do not reach your campaigng oal.
5. Patreon: Ifyou are a creative such as a podcaster or a blogger, Patreon is right for you.However, this works in a different way. Patreon allows your subscriberscontribute a particular amount of money each month or after each blog post orpodcast, or even a YouTube video. Patrons can pledge to pay a certain amounteach month, as long as you still produce content. They can cancel theirsubscriptions if you don't produce content.
6. CROWDFUNDER UK: Crowdfunder is an equity-based crowdfunding platforms. This means that individuals investin a new company not listed on a stock market in exchange for shares in thatcompany. If this sounds like something you need for your business, then Crowdfunder is your best bet. Some businesses that needed just a million haveraised more than $5 million. This might just be the solution to your businesswoes.
7. ULULE: Even though Ulule is based in France, this platform has funded more than 16,000entrepreneurs and artists across the world, in over 198 countries. Ulule has aplatform filled with non-profit organizations, artists, philanthropists, and soon.
8. WEFUNDER: Wefunder is a platform dedicated to the growth of startups. Wefunder connects investorsto startups, and these investors will then own a small stake in your company.Over the years, Wefunder has raised more than $2.2 billion of venture capital,which have been used to fund several startups.
9. GOGETFUNDING: This is another platform that can be used to raise money for personal causes. If you suddenly find yourself in a tight financial situation which involves life, Gogetfunding is a reputable choice. This platform can also be used to championsocial causes, such as sending children to school, or building hospitals inwar-torn countries.
10. ROCKETHUB: RocketHubis for entrepreneurs who need venture capital to jumpstart their business. Toget started, all you need to do is pitch your idea, and see if donors will bewilling to donate to your business.
RocketHub is primarily for entrepreneurs in the field of art, science, social and business.
Now, do you think any of these platforms is good enough foryou? The best way to know if you have made the right decision is to weigh your options, needs and goals. Place them side by side with these platforms, and conduct a thorough research. Only then will you be able to make the right decision.
This is one of the best known, it has a large base of followers and has helped raise $millions of dollars.