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Crowdfunding Platforms

Credit Suite - Thursday, August 11, 2016

Crowdfunding is the collection of finance from backers—the "crowd"—to fund an initiative and usually occurs on the Internet platforms, also known as crowd financing and crowd sourced capital. There is a large abundance of Crowdfunding platforms to choose from. Knowing the details of these platforms can help you pick the one that can net you the most money at the best terms.

CrowdCube and Seedrs are both internet platforms which enable small companies to issue shares over the Internet and receive small investments from registered users in return. While CrowdCube is meant for users to invest small amounts and acquire shares directly in startup companies, Seedrs, on the other hand, pools the funds to invest in new businesses, as a nominated agent.

Crowdfunding platforms serve as "network orchestrators“. They create the necessary organizational systems and conditions for resource integration among other players to take place. They replace traditional intermediaries (such as traditional record companies, venture capitalists).

Personal online fundraising websites usually used for raising money for a personal cause for yourself, friends, or family charge 5% fee.

Kickstarter is a site where creative projects raise donation-based funding. These projects can range from new creative products, like an art installation, to a cool watch, to pre-selling a music album. It’s not for businesses, causes, charities, or personal financing needs. Kickstarter is one of the earlier platforms, and has experienced strong growth and many break-out large campaigns in the last few years.

Indiegogo approves donation-based fundraising campaigns for most anything — music, hobbyists, personal finance needs, charities and whatever else you could think of (except investment). They have had international growth because of their flexibility, broad approach and their early start in the industry.

Crowdfunder.com is the platform for raising investment (not rewards), and has a one of the largest and fastest growing network of investors. It was recently featured on Fox News as the new breed of Crowdfunding.

After getting reward-based funding on Kickstarter or Indiegogo, companies are often giving the crowd the opportunity to invest at Crowdfunder to raise more formal Seed & Series A rounds. Crowdfunder offers equity Crowdfunding currently only from individuals + angels + VCs, and was a leading participant in the JOBS Act legislation.

Rockethub powers donation-based funding for a wide variety of creative projects. What’s unique about RocketHub is their FuelPad and LaunchPad programs that help campaign owners and potential promotion and marketing partners connect and collaborate for the success of a campaign.

Crowdrise is a place for donation-based funding for Causes and Charity. They’ve attracted a community of do-gooders and fund all kinds of inspiring causes and needs. A unique Points System on Crowdrise helps track and reveal how much charitable impact members and organizations are making.

Somolend is a site for lending for small businesses in the US, providing debt-based investment funding to qualified businesses with existing operations and revenue. Somolend has partnered with banks to provide loans, as well as helping small business owners bring their friends and family into the effort.

If you want to build the next new mobile app and are seeking donation-based funding to get things off the ground or growing, then check out appbackr and their niche community for mobile app development.

AngelList is perfect for tech startups. The accredited investors and institutions on AngelList have been funding a growing number of top tech startup deals.

You might want to create your own Crowdfunding community to support donation-based fundraising for a specific group or niche in the market. Invested.in is a Venice, CA based company that is a top name “white label” software provider, giving you the tools to get started and grow on your own.

If you’re an inventor, maker, or tinkerer of some kind then Quirky is a place to collaborate and Crowdfund for donation-based funding with a community of other like-minded folks. Their site digs deeper into helping the process of bringing an invention or product to life, allowing community participation in the process.

FundRazr is a website dedicated to raising money for anything from personal causes to nonprofits to entrepreneurial projects. It costs 5% for completed or incomplete campaign plus 2.2% +$.030 transaction fees and deep social network integration to connect to people in your network. Cheap and convenient transaction fees with funds going directly to your PayPal, can be used to fund anything, anywhere

GoGetFunding is a London based fund-raising site that can be used to raise money for anything from paying for pet’s medical bills to creating a short film. It costs 3.5% with a keep-what-you-raised model, plus 2.9% transaction fee and can be used for public or private projects, anyone can post a project, easy to use.

Crowdfunder is a platform that blends donation-based and investment Crowdfunding models, as well as encouraging online and off-line Crowdfunding and collaboration. It costs 5%, with an all-or-nothing format, plus 1.9%-5% Amazon FPS Transaction fee and Mixes online and offline Crowdfunding, emphasis on businesses’s long-term growth; for-profit companies only.

StartSomeGood is a Crowdfunding for social entrepreneurs, as well as nonprofits and other individuals committed to making change. It costs 5% for completed campaign, with “tipping point” model, and 3% transaction fees, and open globally supports for-profits, nonprofits and individuals. It attracts niche audience by highlighting projects centered in the social good.

Fundable creates a business Crowdfunding platform that enables companies to raise capital from investors, customers, and friends. It helped over 6 million businesses.

Lending Club is the 800lb gorilla in peer-to-peer lending, having cumulatively enabled over $3 billion in p2p loans. Prosper is another leader in the peer to peer lending industry. Peerbackers wants to Crowdfund big ideas via its reward platform.

SoMoLend lends to small businesses via their social, local lending platform. Funding Circle, if approved, investors lend capital at a set interest rate.

Choose the best Crowdfunding platform for your business to get the most money and the best terms!

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