Published By Janet Gershen-Siegel at June 24th, 2018
Written by Janet Gershen-Siegel
So 10 crowdfunding platforms have been catching our eye. And we want to give you the benefit of our research.
Have you been thinking of crowdfunding your business? There are several crowdfunding platforms out there with differing requirements. These are the crowdfunding platforms you should know.
Getting working capital to grow your business doesn’t have to be hard. Many companies these days turn to crowdfunding platforms. A lot of these options will work for startup ventures.
In Part 1, we covered 5 great crowdfunding sites you should have on your radar. Here are 5 more crowdfunding platforms you should know about. This rounds out our 10 crowdfunding platforms you should know.
GoGetFunding has been around since 2011. Also, GoGetFunding lets fundraisers keep the money they raise, whether they meet their target or not. Flexible funding can be a great option if your company is a somewhat unproven idea and you are unsure whether you will be able to meet your funding needs.
GoGetFunding charges a fee of 6.9%. This somewhat high fee includes both the platform fee and the payment processing fee. Hence this option is actually somewhat more cost-effective than many other crowdfunding options.
Crowdfunder works as what’s called investment crowdfunding. This is where investors purchase equity in promising companies.
Crowdfunder treats its campaigns as deals, and its donors as ‘investors’. Basic listings are $449/month. Self-start listings are $499/month. Self-start plus is $999/month.
They have a community over 200,000 startups and 15,000 accredited investors.
Fundable is a business crowdfunding platform which lets companies raise capital from investors, customers, and friends. They have over $80 million in funding commitments.
Fundable allows equity campaigns. They charge $179 per month to fundraise. Fees on rewards are: 3.5% + 30¢ per transaction. They do not charge success fees.
At AngelList, you can invest in a startup or even get a job at one. It can be, essentially, an index fund for startups. Hence if a larger, established company wanted to offer retirement investment opportunities geared to investing in startup companies, AngelList would be a place where they could go.
Hence AngelList is not exactly a business crowdfunding site. Rather, it is a way to connect investors to an array of startup investment opportunities. Investors can try for returns on FinTech or even cryptocurrencies. One of their better-known investments is a business administration site called HoneyBook.
Not really a business crowdfunding site, Fundly does allow for crowdfunding for creative ventures. Therefore, if your business has a creative bent, you might find a home there.
Fundly imposes no minimum amount to fundraise in order to keep any raised funds. You can generally withdraw payments within 24 – 48 hours of the donation. They also allow for automatic transfers. It is free to create and share an online fundraising campaign. However, Fundly will deduct a 4.9% fee from each donation you get. A credit card processing fee of 3% is also taken out from each donation. Plus there are nonspecific automatic discounts for larger campaigns.
For entrepreneurs who want to crowdfund, it pays (quite literally!) to read the fine print. Large and well-known sites such as Kickstarter may get more attention from donors. This is often because they are better known. However, smaller sites like Fundable might offer better rates and more personal service.
In the end, though, it is all about the funding. This is true for all 10 crowdfunding platforms you should know. If your company can meet its goal, then any platform is going to be terrific. If your business cannot, then you will probably do better looking for another form of funding. This includes building business credit. Discover this new way to get funding for your business.