Choose the best platform for your fundraising needs.
The crowdfunding industry is growing at an unprecedented rate. This is not surprising considering the fact that most business owners usually lack the financial capability to venture into new endeavors, and crowdfunding provides them a venue to raise the capital they need to turn their ideas into reality.
Some Interesting Facts on Crowdfunding
- According to an infographic published by the crowdfunding platform Fundable, the industry has grown by 1000% since 2009 and has provided more than $10 billion in funding to startups around the world.
- Crowdfunding is expected to have added more than $65 billion into the global economy and created at least 270,000 jobs by the end of 2014. If the industry continues to grow at this rate, it is expected to contribute more than $500 billion in investments and generate more than $3.2 trillion in revenue per year, and create more than two million jobs by 2020.
- At present, the law only allows accredited investors (those earning more than $200,000 per year) to invest in private equity opportunities. However, the Securities and Exchange Commission (SEC) is currently working to finalize the rules that will allow non-accredited investors to invest in startups.
Crowdfunding Sites for Startups
If you are seriously considering the notion of raising capital for your startup, here are some of the best platforms that you should consider.
Kickstarter is probably one of the most popular crowdfunding sites at present. It operates on an all-or-nothing platform and is dedicated to raising funds for creative projects. Kickstarter collects a 5% fee on successfully funded projects and uses Amazon Payments to process pledges for US-based projects.
This online crowdfunding site is available for individuals, businesses and non-profit organizations, and can be used to raise funds for virtually anything. Indiegogo charges a 9% fee. However, you will get 5% back if you manage to reach your goal.
Like Indiegogo, GoFundMe can also be used for a wide variety of projects. The site charges a 5% fee on the amount you receive and an additional 3% for processing your funds. However, you get to keep any amount that you raise – even if you don’t reach your target.
This site focuses on individuals, small businesses, communities and local communities. If you decide to use this platform, you can choose between two plans – the all-or-nothing plan (a 5% fee will be charged on all donations plus a 3% processing fee if the goal is reached) and the variable plan (you will be charged a 7.5% fee on any amount that you raised if you did not meet your goal).