There has never been a better time to raise funds for a business idea, nonprofit cause, or even for personal needs with crowdfunding platforms online. 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.
Listed below are our top recommendations for crowdfunding platforms. Accordingly, we selected the top six based on how easy it is to use, how well they raise funds for their customers, pricing options, social media integration, and other factors. You can use these platforms to raise funds for your project no matter what kind of entrepreneur you are, whether you’re an artist or an advocate for climate change.
These are the 6 best Online crowdfunding platforms in 2022
- Indiegogo is the best overall.
- Best for Startups: SeedInvest Technology
- Best for Nonprofits: Mightycause
- Best for Investing: StartEngine
- Best for Individuals: GoFundMe
- Best for Creative Professionals: Patreon
Best Overall: Indiegogo
Indiegogo
Having funded more than 800,000 ideas since 2008, Indiegogo is clearly the best overall.
Pros
- The BBB has given it an A+ rating
- Overall, it offers great opportunities for entrepreneurs and investors
- Worldwide operations
Cons
- Charges a 3rd-party processing fee plus a 5% platform fee
Slava Rubin, Danae Ringelmann, and Eric Schell founded Indiegogo, Inc., in 2008 so that they could fund their own projects. Over 15 million people visit Indiegogo each month, which launches 19,000 campaigns per month.
Indiegogo, which is available in 235 countries, is the perfect platform for crowdfunding any kind of project. If you would like to collect funds for up to 60 days, there is a 3% to 5% third-party fee.
Your campaign can be integrated with Google and Facebook platforms with their tools. You should receive the funds in your bank account 15 business days after completing the fundraising. Moreover, you can become a backer of one of the thousands of products and ideas.
The BBB has rated Indiegogo A+.
Our choice of this simple platform was based on its great success with many fundraising projects.
Best for Startups: SeedInvest Technology
Having helped more than 235 startups raise more than $300 million in funding and having over 500,000 investors, SeedInvest Technology has proven to be a wise choice for startups seeking funding.
Pros
- More than 500 startups have been funded
- This creates awareness among investors and venture capital firms
- You don’t have to pay any fees if your fundraiser isn’t successful
Cons
- The vetting process for startups is intense, but not all startups are chosen
SeedInvest Technology, based in New York City, facilitates investments in early-stage startups. The site has already funded more than 235 companies, making it a great option for startups.
For founders to raise money through SeedInvest Technology, they must register, fill out an application, and go through a screening process. During this process, due diligence is conducted. If you’re selected to fundraise, you begin the process once you create your profile. A placement fee of 7.5% and an equity fee of 5% is taken by SeedInvest when you close your round.
On their website, you can use the calculator to estimate how much it might cost you to raise money. Campaigns can take anywhere from 45 to 6 months, depending on the nature of your business.
Best for Nonprofits: Mightycause
Mightycause is among the best platforms for raising funds since it offers nonprofits a number of free tools while offering a low-cost platform.
Pros
- Customer relationship management (CRM) systems such as Salesforce are compatible with the software
- Free demo Available Integrations with Facebook, Twitter, LinkedIn,
- and the ability to plan year-round fundraising activities, special events, giving days, and crowdfunding campaign
Cons
- CRM integrations, for example, are part of the platform’s paid plan
Mightycause was created in 2006 as an online fundraising platform for nonprofit organizations and individuals. Since it has helped over 150,000 nonprofits raise the funds they need to carry out their missions, its fundraising flexibility makes it a standout for nonprofits seeking donations.
From peer-to-peer fundraising to giving days, users can run campaigns on the platform. Mightycause charges between 1.2% and 29 cents for processing donations. Prestashop also offers fundraising services, including year-round fundraising campaigns, peer-to-peer campaigns, and event-related fundraising campaigns.
With the “full-service advance plan,” you can also take advantage of branding, marketing, and donor management features for only $99 a month. Upgrading is free of charge.
Individuals and organizations can set up fundraising campaigns for their favorite charities.
Best for Investing: StartEngine
StartEngine is an excellent investment option because it allows everyday people like you to direct their money into a business or startup they like and receive equity in return, starting at $100 per investment.
Pros
- Investments start at $100
- more than $200 million raised
- “Shark Tank” host Kevin O’Leary serves as a strategic advisor
Cons
- Relatively new company
StartEngine is a platform that enables people to invest in early-stage startups and is created by Ron Miller and Howard Marks in 2011. Kevin O’Leary, who hosts ABC’s “Shark Tank,” is a strategic advisor. Its approach makes it the best Online crowdfunding platform for investors due to its layman-friendly investment approach.
From biotech pioneers to travel and tourism startups, you can start investing with as little as $100, depending on the share value listed for each company. To help you make an informed investment, each company’s prOur profile of each company includes information about the company’s valuation, price per share, number of investors, and more so you can make informed investment decisions.
When you’re ready, simply click the “Invest Now” button and fill out your personal information and payment method. If you are a startup trying to get fuA startup trying to raise funds can access the platform’s network of 300,000 investors, which has helped 375 businesses raise funds.
Best for Individuals: GoFundMe
GoFundMe is a versatile fundraising platform that has helped individuals raise money for everything from personal healthcare expenses to keeping local businesses alive. The organization has raised more than $9 billion in funds from over 120 million donations.
Pros
- 0% platform fee
- Flexibility to raise money for yourself, a friend, or a charity
- 24/7 expert support available
Cons
- Credit and debit card transaction fees
As one of the largest crowdfunding platforms online, GoFundMe has raised over $9 billion through 120 million donations since it was founded in 2010. Its success and simplicity makes it the best platform for individuals.
Your GoFundMe page can be created in three simple steps. The first step is to determine how much money you will need to raise. Pictures and videos can also help tell your story. The final step is to share your campaign on social media, through text messages, and via email with your friends and family.
On the platform’s dashboard, you can manage donations, send thank-you notes, withdraw funds, and more. Unlike other fundraising platforms that charge platform and processing fees, GoFundMe doesn’t charge a platform fee. Processing fees amount to 1.9% and transaction fees amount to $0.30. There are no deadlines or deadline-like restrictions on fundraising campaigns.
In case of questions or trouble setting up your fundraising page, GoFundMe offers 24/7 expert support.
Best for Creative Professionals: Patreon
Over 200,000 creators, including podcasters, musicians, artists, and writers, rely on the Patreon platform for fundraising and subscription options.
Pros
- A monthly subscription option is available
- that incorporates integrations with Vimeo, MailChimp, and other technologies
Cons
- Depending on the plan level, fees start at 5% and can go as high as 12%
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.
Specifically, Patreon helps creative people raise funds from family, friends, and supporters. Signing up for Patreon is free, but you may have to pay a monthly fee depending on your plan. Fees are charged for the “Lite” plan at 5%, the “Pro” plan at 8%, and the “Premium” plan at 12%. Payments are subject to a 2.9% processing fee and $0.30 per transaction.
For new creators, the Lite plan is a good option, while the Pro plan helps them to create membership options, and the Premium plan is for established creators or businesses that generate at least $2,500 a month on the platform and have at least 100,000 social media followers. Moreover, you will have access to Patreon’s mobile application and commercial tools.
The Premium plan requires a 3-month commitment, but you can switch between the Pro and Lite plans at any time.
FAQs
What Is Crowdfunding?
The goal of a crowdfunding campaign is to raise funds online through creative endeavors, business ideas, or personal causes. Entrepreneurs, small businesses, nonprofits, and everyday people use crowdfunding platforms to raise money to launch new companies, develop products, or accomplish missions.
Crowdfunding: How Does It Work?
Before using a crowding site, you must create an account. You can then create a personalized fundraising page that details why you need funds, what you need them for, and how to raise money. You can usually start collecting money from crowdfunding sites within days, depending on what type of site you use. Some sites allow advertisers to run campaigns for a maximum of 30 days. You link the fundraising account with the financial institution account during registration.
What Can Crowdfunding Be Used For?
The crowdfunding site should explain in detail what the money raised will be used for. By raising funds through a crowdfunding campaign, people and businesses can continue to grow or support their missions. A crowdfunding campaign can be used by nonprofits to keep supporting their causes, for example.
Additionally, crowdfunding allows investors to purchase shares of startups at a fixed price. You may see your return or lose it if the business fails, depending on whether it succeeds and goes public.
What Are Expected Crowdfunding Costs?
Most crowdfunding sites charge a platform fee that is a percentage of the money raised, along with a processing fee of about 2.9% plus about $0.30 per transaction. Indiegogo’s platform fee is between 3% and 5%, and Patreon’s is between 5% and 12%, according to this article.
How We Chose These Crowdfunding Platforms
In our review, we examined over 25 crowdfunding sites that can be used to raise money for personal projects, businesses, nonprofits, startups, and more. Taking into account the platforms’ usability, pricing, tools offered, success rates, integrations with third-party platforms, and payment options, we narrowed the list to these six.
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