Crowdfunding is an excellent way of converting brilliant ideas into reality while making a profit. Some popular products, such as the Oculus Rift, started their journey through crowdfunding, and are now worth millions of dollars. If you have an idea that you believe is worth investing, or if you want to support other creative geniuses from all over the globe, read our article and find out which crowdfunding platforms we think are the best.
Kickstarter is the synonym for crowdfunding service. This is the first thing that comes to mind when you think about this term, and for a valid reason – it is the most popular crowdfunding platform. Therefore it is more likely that your project will be noticed by more people if you start raising funds through Kickstarter. It is best for creative projects such as books, music, or for cool, small gadgets that aid everyday living. In other words, it is best for stuff that can go viral, interesting many people in a short time frame, and that also don’t need an ultra expensive budget. It is not the best option for major projects or nonprofit organisations, mainly because you get $0 if your project does not meet the goal. Additionally, if your campaign is successful, Kickstarter takes 5% which is a standard amount in the world of online fundraising.
Indiegogo is one of the veterans in the crowdfunding field and is around for over a decade. It has helped raising over a billion dollars so far and is still going strong. A cool thing about Indiegogo is that it has a “flexible” funding option that lets you collect the money raised even if you have not reached the goal which is a significant difference when compared to Kickstarter. It is also a marketplace that allows you to sell the product you raised money for. You can also continue raising funds even after the campaign has ended, which is nice. You can also use Indiegogo for raising funds for humanitarian or similar causes – for nonprofits, fundraising is free! Indiegogo will take 5% of the money raised, and will charge additional fees for credit card contributions.
Crowdfunder is aimed at finding “the big one”, venture capitalists or angel investors. They give you funds; you offer them equity of the company. This makes Crowdfunder a right place for more significant projects that need considerable investments to work, but are likely to grow fast and have promising future. Crowdfunder has subscriptions and depending on the plan you choose; you can go up to an unlimited number of fund-raises each month. You also get to keep what you raise no matter if you hit or miss the goal. The main problem of the Crowdfunder is the price, which makes it a viable option only for people who are entirely sure their business needs a huge financial injection to work, and are confident in the success of the whole project. But still, it is an excellent funding platform for finding that one big investor who will believe in your project.
Patreon is a unique crowdfunding service because it offers subscriptions, but for supporters and donors. Donors select a monthly contribution, which is incredible, since it will allow you to make calculations for the next month too, not just for the present moment. Patreon is best for creative individuals who have followers who would like to see them create more – bloggers, YouTubers, bands, designers, comic book artists, podcasters. Anything that you create on a regular basis that attracts followers is a good project to be funded through Patreon. You can receive funds each month, or per creation you make. Patreon will take 5% of the money you raise, which is standard in the industry.
RocketHub is an easy to use crowdfunding platform, both for donors and those looking to raise funds for their project. It is quite easy to create or to join a cause. RocketHub puts no limitations on how much you can raise for your project, and lets you keep all that you earn, no matter if you hit the target or not. RocketHub company partners with A&E network, and they are willing to advertise the most exciting projects, which will boost the fundraising. As for the fees, RocketHub will take 4% of any successful campaign, as well as 4% from all credit card donations. However, if you do not reach the target, the RocketHub platform will take 8%, and the credit card fee remains the same.
Fundable is similar to Kickstarter funding platform as it shares the all or nothing principle – if your project does not meet the target, you lose everything. To be a part of Fundable, you need to pay a monthly subscription, as well as 3.5% fee for every successful fundraising campaign. Fundable also gives you options to provide rewards for your donors, whether as products or equity of your company. For equity crowdfunding, Fundable will provide help and even business plan development advice. However, you will have to make all the money and shares transactions outside the platform, which is a bit odd. Fundable has monthly fees that are not cheap, which makes it a service that is not friendly towards beginners tight on budget. For the rest, it is excellent, especially because it offers both rewards and equity crowdfunding.
7 MightyCause (Razoo)
Formerly known as Razoo, MightyCause can offer funding for businesses, teams and personal needs, it is best used for charity and nonprofit crowdfunding. But even if you select individual fundraising campaign, you still have to choose at least one “noble” cause such as environment, children, or volunteering. MightyCause is an old crowdfunding service, in fact, one of the first online crowdfunding platforms out there, and that speaks for itself. Personal campaigns have 0% fees, which is incredible – you only need to pay payment processing fee (2.9% + $0.30 per payment), for the rest you pay 4%. And you don’t have to wait for MightyCause’s approval before launching your campaign. The biggest flaw of MightyCause is that unlike most other funding platforms, it does not let you give gifts and rewards to your backers, which can be demotivating for some.