Crowdfunding has become a popular way to get funding for your startup or a new project. It is an innovative method of raising capital with the help of investors, clients, friends, or family. You can gather sufficient funding for your business through the crowdfunding method. It is an excellent way to attract investors to provide funds for your venture. There are many crowdfunding platforms, but not all of them are equal. Each has a specific purpose. You can choose from the top 10 most popular crowdfunding platforms mentioned below.
- Kickstarter: It is the most popular crowdfunding site that welcomes all types of campaigns, including art, technology, design, music, food, games, publishing, and more. One can raise as much investment as he wants as there is no lower or upper limit.
- Indiegogo: It has flexible funding that lets you keep the funds you have raised without reaching your goals. It has helped fund more than 800,000 projects in technology, design, arts, and more. The investors willing to fund a project can donate and receive a gift instead of a stake.
- Patreon: It is another popular crowdfunding platform that provides ongoing financial support for a creative venture or artist. It also has an option for setting a maximum monthly amount, and the artist can give rewards to their patrons.
- GoFundMe: It is for individuals who need money immediately for short term projects and medical emergencies. It is a platform for raising funds to help charities, friends, and individual fundraisers.
- RocketHub: This crowdfunding platform powers donation-based funding for a variety of creative projects. It lets you track the progress and status of your project. The LaunchPad feature offers the members to work with leading companies and marketers.
- Crowdrise: It focuses on real-world issues then feeling profitable ventures. The fund for animal welfare, arts, diseases, education, and even religion. It can also be used to find college scholarships, weddings, and birthday parties.
- CircleUp: It supports early-stage businesses that develop consumer products. It enables fundraisers to use debt and equity together and market products like food, beverages, electronics, household products, and more.
- Crowdfunder: It specializes in assisting entrepreneurs with raising money. It lets you sell equity and debt in your business to attract investors and capital to raise money for your projects.
- Seedrs: It is an equity-based crowdfunding platform that invests in startups. It also helps gather investment for early-stage businesses. The platform provides funding and financial assistance to startups through every stage.
- PledgeMusic: It funds new talent in the music industry. You can also provide rewards for dominos who pledge a certain amount of money. The more fund your pledge, the richer the rewards are.
Types of crowdfunding platforms
- Donation-based crowdfunding: It allows donors to make any amount of contribution, no matter how small or large. Please promote non-profit funding for project life education, environmental benefits, or medical expenses.
- Reward-based crowdfunding: It is the type of crowdfunding where donors offer a specific amount of money to the business to get a reward. It can be anything like a product, a discount, or a service?
- Debt crowdfunding: In this type, the lenders loan the borrowers and expect a principal plus interest. Debt crown funders do not expect any reward, unlike reward-based crowdfunding. People use that crowdfunding for small purposes like the home renovation or buying a car.
- Equity crowdfunding: It allows individuals to get the amount of funding from investors at the cost of a percentage of ownership. It helps gain enough financial capital to launch a business. It is not restricted to fund a business idea or a noble cause.
- These are the types of crowdfunding you can choose from to support your business. The type of crowdfunding platform you choose depends upon your purpose so choose according to that.