6 Top Online crowdfunding platforms in 2021

By using crowdfunding platforms, entrepreneurs can obtain startup capital from a variety of sources in varying amounts, oftentimes in exchange for products or equity. If you’re thinking about crowdfunding your startup but aren’t sure where to start, you’re in the right place. We have researched the best crowdfunding sites for startups and compiled the pros and cons of each one. Crowdfunding platforms provide an opportunity for small businesses to raise capital.

• The flexible funding option is handy for multi-stage projects because you can fulfill some of your commitments to backers using a portion of their investments.
• Moreover, you can become a backer of one of the thousands of products and ideas.
• On a monthly basis, the Freed Fellowship also picks one U.S. business owner to give $500 to, and does so without requiring equity.
• In my experience as a business owner, exploring business grant websites is a smart way to find the right funding opportunities for your business needs.
• Fundrise is one of the most popular real estate crowdfunding platforms.
• It is a way a small business owner can finance a new or existing enterprise without going to the bank.

Best Funding Platforms for Crowdfunding Your Startup

Their global support team helps you tweak your campaign for the best results before the launch. It’s flexbility allows you receive offline contributions into your plumfund campaigns. Focus on that one platform and that one goal, and tell everyone about it, until you raise your funds.

Types of Crowdfunding for Startups

So, while organization leaders cannot apply directly, they can refer to Patagonia’s funding guidelines to learn more about what could make them eligible grant recipients. Patagonia seeks organizations focused on community involvement with initiatives like climate action, land conservation and biodiversity. Patreon was founded in 2013 by Jack Conte, a YouTube musician, along with Sam Yam. Platform, which has raised more than $2 billion for creative professionals, has attracted more than 200,000 creators and helped them raise funding.

Best Crowdfunding Sites and Platforms for Startups

With a wide range of startups across multiple industries, investors can explore budding businesses in sectors ranging from technology and consumer products to health care and renewable energy. StartEngine also provides tools to help investors assess company performance and track their portfolio. If you’re trying to raise money for your startup, the crowdfunding sites above might be just the way to do it. Many business owners can attest that there are plenty of people ready to invest in startups through crowdfunding. So while you’ll have to pay back your Kiva loan, there are no funding fees or payment fees to worry about. And since Kiva requires you to prove your social capital by kicking off your campaign with donations from family and friends, that means convincing people you know to fund your business.

Reward Existing Customers for Their Loyalty

They set up the required organizational mechanisms and circumstances for other parties to integrate their resources. They take the place of conventional intermediaries (such as record companies). Ulule is the leading crowdfunding platform in Europe and offers international crowdfunding. If you do not reach the goal, the donations are refunded to your backers and you don’t have to pay any fees. However, Ulule maximizes success through its approval process and support to fundraisers by giving advice on displaying the project and using the platform. Crowdfunding is one of the most popular ways to obtain funding when starting a business or launching a startup, and for a good reason.

They make their money selling premium add-ons to their system, which you can use if you need additional functionality. If your startup isn’t a great fit for the other crowdfunding platforms on this list, then maybe Give (and Charitable) are for you. GoFundMe is the “Hey, can I borrow 50 bucks” of crowdfunding platforms. best crowdfunding sites for startups in 2021 I see it used mostly for personal emergencies, but it can be used for any number of short-term personal projects. Here are 21 crowdfunding sites you can use to fund and fuel your startup.

The HubSpot Customer Platform

You need to choose a platform you’re eligible for and be organized to realize your financial goals. There are two types of crowdfunding methods that require financial repayment. These are loans from a group of investors who come together to fund a certain business or individual. These loans can range in size depending on the crowdfunding site, your business size and type, number of years in business and your revenue. Some crowdfunding platforms check your credit and consider other factors.

Most crowdfunding platforms focus on one of these types, but some offer both. And some crowdfunding sites allow you to keep whatever funds you raise, while others let you keep the funds only if your campaign is entirely successful (commonly called “all-or-nothing campaigns”). All successful campaigns pay a platform fee of 6% of the total amount raised. There’s also a secondary market where startup investors can trade shares. The charges are; 0.5% of the total funds as a processing fee and a £2,000 completion fee. Investors are offered incentives to support the project, from T-shirts to exclusive pre-sale discounts.

Crowdfunding sites connect your startup to willing investors and fund contributors—and we found the very best fundraising sites for businesses. The biggest difference between Kickstarter and Indiegogo is when you get your money. Kickstarter gives you funds only after the campaign reaches its fundraising goal. Indiegogo lets you receive funds as they get donated, or you can wait to see if you reach your target. Instead of a centralized platform, Mightycause offers tools and features you can use on your website.

• …But remember this, crowdfunding sites have to make money to survive.
• Funding your business idea or project doesn’t have to mean begging banks or sweet-talking investors.
• You pay a 5% fee for the funds amassed in the campaign and a further 3% transaction fee.
• This business strategy allows many individuals to pay as part of a greater fundraising effort, rather than an organization soliciting large amounts of money from professional investors.
• To date, these platforms have raised more than $34 billion1 through easy-to-use tools that make it easy for both fundraisers and supporters to engage in the process.
• Whatever your reason for raising money, there is a crowdfunding site for you.

Small business owners can apply directly to receive a $2500 small business grant. What’s more is the Freed Studio, the site’s internal service offered to its grant applicants, automatically provides them with two free months of mentoring. One important thing to keep in mind is that the benefits of grant resources, like databases and websites, go beyond saving time and consolidating information. They also provide guidance on the eligibility requirements, application deadlines, best practices and advice to help boost their chances of success. As long as the business owner meets the eligibility requirements, they can apply to multiple grants simultaneously, which naturally increases opportunity and helps to minimize the risk of rejection. These resources have the potential to empower small businesses to secure the financial support they need for success.