Raising money for a business used to very difficult. You had to borrow from banks, family members and friends and more often than not, they would turn you down. Today, these methods are still very much SOP for those who don’t have enough capital to start a business but there’s one thing that you can turn to now which did not exist before: crowd funding websites.
These sites have become so popular and highly sought after that there are literally new crowdfunding platforms being launched almost every day. That is not to say however that all of them are good. In fact, very few have excellent track records and stellar reputation. So if you’re planning to start a crowdfunding campaign, here’s a list of the best crowd funding websites you can tap:
Kickstarter is essentially all about raising donations to help creative projects which range from innovative products to music albums and art installations. It’s one of the longest running platforms today and has been credited for many major breakout campaigns in the last few years.
Currently the leading crowdfunding site in the world, this San Diego based company raised a total of $470 million in 2014, beating the previous #1 platform (Kickstarter) which raised only $444 million. So if you’re wondering why it is only second on our list, it’s because GoFundMe enables anyone to raise money for any cause, not just for creative projects. This means that even though it’s currently the most popular, it’s still not the best choice for people who want to fund business ideas and similar campaigns.
Just like GoFundMe, Indiegogo also approves fundraising campaigns for nearly anything including personal finance and medical treatments, but it does not allow donation-based campaigns for investment purposes. They’ve been around for quite awhile now and have achieved impressive growth internationally.
This platform was originally launched to support art campaigns but now it has expanded to education, science, social, as well as business projects. It also holds the SciFund Challenge every year, which is an Internet based effort to finance science projects.
Considered one of the top crowdfunding sites, Peerbackers’ main thrust is to support innovators and entrepreneurs. It even helps young entrepreneurs who are 13 to 17 years old by partnering with them and helping them with their ideas. They also launched the CrowdFunding Academy which basically educates people on how they can make the most out of their crowdfunding campaigns.
Crowdfunder has one of the biggest and fastest growing investor network. They offer equity crowdfunding to help businesses and entrepreneurs raise capital and boost economic growth. For entrepreneurs, they will be given a guided process and a network of investors that are eager to raise investment capital. Investors also benefit from Crowdfunder because they are given the chance to put their money on promising companies that in the past were only available to industry insiders and venture capitalists.