crowdfunding for a business the Small business owners who wish to take their venture to the next level might be looking for ways to get capital. It is now time to raise some real capital for your business after you have crafted a business plan, used savings to fund your venture, and run it as a side business for a few months.
The bank is no longer your only option. Sites exist where people can invest in your project, idea, or business. Nowadays, there are many crowdfunding websites. We have compiled a list of the best crowdfunding for business sites for you to choose from. If you’re looking to fund a startup, a creative project, or raise money for a cause, then this list is for you.
12 best of crowdfunding for a business sites
1-Kickstarter
By connecting creators with resources, Kickstarter helps make ideas a reality. Since 2008, the company has raised more than $3.7 billion for more than 143,000 projects created by artists, musicians, filmmakers, designers, and others. With funding, you have to either meet the goal you set or your money will be returned.
Creating a Kickstarter campaign is free, but a 5% fee is charged if it is funded. Processing fees will also be charged between 3-5%.
2. Indiegogo
As well as offering live crowdfunding campaigns, Indiegogo has an innovative products marketplace. More than 650,000 projects have been funded through Indiegogo. Use Indiegogo’s “global network of early adopters” to test your idea’s potential and raise the capital you need to move forward.
This platform allows you to raise money continuously, without stopping at any specific time. You can sell cryptocurrency, offer equity, offer securities, and create revenue-sharing arrangements without any fundraising deadlines imposed.
All projects on Indiegogo are subject to a 5% platform fee. Using Indiegogo’s sister platform, GoFundMe, you won’t have to pay any fees if you’re raising money for a cause.
3. Crowd Supply
Crowd Supply can help you build electronics or bring a family recipe to market. With 70% of their projects successfully funded (2x more than Kickstarter), their mission to “bring original, useful, respectful hardware to life” has been accomplished. For comparable projects, the average amount raised by a successful project is $66,000 (6x more than on Kickstarter).
There are several payment plans available through Crowd Supply. 5% of gross campaign sales is standard, 5% is guided and 10% is custom, not including processing fees. Depending on the plan, features include campaign management, media asset creation, and a dedicated PR team.
4. Crowdfunder
Connect with a community of 200,000 entrepreneurs and investors with Crowdfunder. In this community, entrepreneurs can offer equity crowdfunding, which means that accredited investors purchase shares of their businesses. They have raised over $150 million dollars from over 12,000 VCs and angel investors to assist all kinds of startups from Pre-Seed to Series A.
In addition to Free and Starter plans ($299/month) for its Premium plans ($499/month), Crowdfunder offers a variety of additional services like document storage and personalized support.
5. Experiment
This is a platform for funding scientific discoveries. Researchers fund experiments that “push the boundaries of knowledge” like fossil excavations of dinosaurs and research into medieval monasteries. Their funding eliminates the overhead costs that university grants would entail (which can be between 50 and 60 percent).
Initially, the Experiment is free. Once you’re fully funded, there is a platform fee of 8% and payment processing fees of between 3-5%.
6. Chuffed
With Chuffed, you can support social causes that benefit animals, communities, or the environment. Non-profits and charity-based organizations are the only ones permitted to utilize this platform. The average campaign has raised $7,000 on average. Nearly 8,000 campaigns raised more than $18 million.
Your processing fee is paid by donors. So, for a $100 donation, the donor must pay $3. Plus, all donations to Chuffed will earn a small donation as well.
7. Patreon
By running a membership business for their fans, Patreon helps artists, musicians, writers, and more make money. Subscriptions from fans that choose to access exclusive content and experiences provide this revenue stream. Creators of the app have raised $350 million and patrons pay a monthly fee that is more than Netflix and Spotify.
A 5% fee is charged for successful payment processing. Payment is not processed at the end of every month, but it’s batch processed at the end of the month. The payout fee also applies to the transfer of money between account holders.
8. Fundable
Choose a program on Fundable after creating a profile. Through a rewards program that allows entrepreneurs to sell their products, take pre-orders, and sell merchandise, consumer-facing companies can raise up to $50,000. The equity program is available to companies looking to raise $50,000 to $10 million for their product, service, or B2B business.
It costs $179 per month to fundraise and is free to create a company profile. There are no success fees, but there is a processing fee of 3.5% + $.30 per transaction for rewards-based raises.
9. WeFunder
Investors can contribute between $50,000 and $50 million to you using WeFunder. Most campaigns take between one and three months to reach their objectives. You will be able to solicit funds from over 150,000 WeFunder investors for anything from small restaurants to tech startups.
WeFunder profiles are free to create and there are no fees associated with managing them or making transactions. Administrative fees are charged to investors to cover all the costs of operating WeFund.
10. SeedInvest
The company works with high-growth, professional, and early-stage companies to raise preferred equity or convertible notes. You must provide the pre-money valuation for priced rounds of equity. In the case of convertible notes, the valuation cap, conversion discount, interest rate, and time period will need to be provided.
You will need to create a profile, go through a screening process, and get your due diligence done before you can use SeedInvest. The platform is for companies ready to make it big, and you can expect the process to take a minimum of 60 days.
The placement fee is 7.5% of the total amount raised and is only paid if the campaign is successful. A warrant covering 5% of the amount raised and up to $10,000 for legal, marketing, and due diligence expenses is also included.
11. Fundly
According to their homepage, Fundly will “raise money for any use” without raising capital or charging startup fees. From personal medical bills to politics, to trips, to political campaigns, they funded it all. Utilize Fundly’s Facebook OpenGraph to maximize your reach by simply creating a page, managing your campaign with the Fundly app, and using Fundly’s Facebook OpenGraph.
It’s not necessary to raise a minimum amount in order to keep the money you’ve raised. You can withdraw the money within 48 hours of a donation, and you can set up automatic transfers as well.
All users pay a platform fee of 4.9% and a credit card processing fee of 2.9% (depending on their country).
12. LendingClub
Loans from LendingClub can range from $40,000 for personal loans to $300,000 for business loans. Instead of being a bank, LendingClub connects borrowers with investors. In exchange for some solid returns, investors buy notes that represent fractions of loans. LendingClub facilitates every transaction and screens every borrower. Business loans from LendingClub give you cash upfront on terms of one to five years without a monthly payment or prepayment penalties.
When you have a large, one-time expense, LendingClub is recommended. The business must also have been in operation for at least 12 months, have annual sales of $50,000, have no recent bankruptcy filings, and have at least 20% owner ownership.
Total monthly payments per $10,000 borrowed range between $227 and $955, with 9.77% to 35.1% annualized rates. The origination fee is between 1.99 and 8.99%.
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