The 5 Best Crowdfunding Sites for Startups and Small Businesses

January 19, 2023
Business Finance
The 5 Best Crowdfunding Sites for Startups and Small Businesses

Do you have a fantastic  business idea that you know has the potential to grow into an impressive enterprise? Are you struggling to pull together the fund for your startup through more traditional means?

If you don't happen to have a wealthy relative with a lot of faith in you or a friendly bank willing to take the chance, it may seem that your company is never going to get off the ground. Thankfully, the digital age has helped to democratize accessing start-up capital through crowdfunding.

This list of the best sites for crowdfunding for small business and startups will help you to present your business plan to the masses and if your idea is strong enough, you should be able to reach your fundraising goals in no time!

In the US, crowdfunding generates an average of $17.2 billion each year, and from that huge amount, the average total funds raised for a project is $33,430, which should give you an extremely healthy start on your business journey!

But your success levels will depend upon selecting the best crowdfunding platforms for startups which will ensure that your idea is seen by investors with the vision to see your potential. So how do you with are the best crowdfunding platforms for startups?

Below we will talk you through our pick of the top 5 Best Crowdfunding Sites for Startups to give you an idea of where you should start and how you can leverage crowdfunding platforms for startups into business success!

IndieGoGo is One of the Forerunners When it comes to Crowdfunding for Startups

Indiegogo is one of the most popular choices for crowdfunding for small business and startups and have helped to fund over 800,000 ideas over the globe within 12 years! And based on this success an average of 19,000 crowdfunding campaigns are set up each month!

This makes it a great option for budding entrepreneurs desperate to get the support to get their idea off the ground. There is wide scope for the types of businesses accepted (in comparison to GoFundMe for example, which is suitable for social enterprises and non-profits), and you can create a campaign for just about any business or product you want to!

Benefits of Using IndieGoGo for Your StartUp Crowdfunding

  • Global crowdfunding operations
  • You can set up your crowdfunding campaign to run for up to two months.
  • Once your campaign ends you will receive your money within 15 working days.
  • A wide range of ideas and businesses are accepted.
  • Terrific opportunity for small business owners and entrepreneurs.
  • You can promote your campaign on social media sites such as Meta and Twitter.

What to Consider Before Using IndieGoGo

  • You will have to pay a platform fee
  • You will have to factor in a third-party processing fee into your overall funds raised.

GoFundMe is One of the Best Crowdfunding Platforms for StartUps Concerning Social Causes and Charity

  • No Platforms Fee
  • 2.9% Payment Fee
  • $0.30 per Pledge Fee

If your business idea has an environmentally friendly or socially beneficial aspect, then this type of crowdfunding may be the right fit for you. If you have a start-up which is to do with animal welfare, creating a product with a 0 carbon footprint, or assisting those in need, then you should consider using this site to raise money for your project.

Benefits of GoFundMe Based Crowdfunding

  • You don't have to pay a fee for this crowdfunding platform.
  • You can keep the money you raise even if you don't hit your fundraising goals during your crowdfunding campaign.

Things to Consider About GoFundMe

  • You will have to meet strict requirements when you create a profile which may mean that your business doesn't qualify.
  • The saturation level is quite high on this site, so you need to make sure that you can stand out from the competition.

Kickstarter is One of the best Options for Crowdfunding for Small Business and StartUps

  • 5% platform fee if your campaign is successful.
  • 3% payment fees, $0.20 per pledge (or 5% and 0.05 if pledges are under $10.)
  • This is an all-or-nothing platform
  • You can use this crowdfunding for startups service in the US, Canada, the UK, the Netherlands, Australia, and New Zealand.

Inarguably one of the biggest names when it comes to crowdfunding platforms for startups, this incredibly popular site has been in operation since 2009 and has built an exceptionally large audience in this time. This means that this is one of the best crowdfunding sites for startups in terms of the potential size of prospective investors.

As of writing, Kickstart could boast a monumental 21,483,523 backers for projects and 572,961 launched projects. But the substantial number of users also means you will be battling a huge amount of competition.

There is also slightly more restriction on the type of business you can set up in comparison to Indiegogo - your business must fall under the categories the company has set up such as Technology, Film and Photography, Fashion and Design, and Games.

Your startup will also need to qualify under the statement that you will “create something to share with others.”

Benefits of Kickstarter for Crowdfunding for Startups

  • A well-established and trusted platform for crowdfunding.
  • You can use these crowdfunding platforms for startups from 6 different global locations.
  • Over 500,000 launched projects and more than 21,000,000 backers.
  • The huge potential audience for your idea.

What to Consider When Using Kickstarter Crowdfunding for Small Business

  • You need to pay both platform and payment fees
  • All or Nothing Funding platform.
  • Currently a 40% success rate for campaigns.
  • Some may find it difficult to be accepted due to restrictive requirements.

Start Engine is an Industry leader in Crowdfunding Platforms for Startups

  • 7-12% platform fee (this changes based on the method of investment and associated fees.)

StartEngine Crowdfunding for small business and startups has quickly become a big name in the startup space. This is a great option for those with long-term goals to build an established profitable company rather than those with a one-off project idea.

The equity crowdfunding platform has impressed by raising funds of more than $65 million for startups using the platform with funds from more than 37,000 investors.

Benefits of Using StartEngine to Raise Capital for StartUps

  • A highly successful site with a formidable reputation for successful campaigns for serious startups and small businesses.
  • You can collect your raised funds once you hit the $12,000 mark.

Things to Consider Before Using StartEngine

  • Only startups based in the Us can apply.
  • You will have a minimum funding goal set for you of $10,000
  • You cannot access funds over $1.07 million under Regulation Crowdfunding.

Fundable Is a Straightforward Approach to Crowdfunding for Startups

  • 5% platform fee
  • 3.5% payment fees and $0.30 per pledge
  • All or Nothing for Rewards-based Funding.
  • Keep What you Raise on an Equity Campaign

Fundable is unique among the best crowdfunding sites for startups in that it charges a monthly fee for a subscription to the site. This means that the payment fees you will face can be considerably lower than those you might find on other sites, and you'll find charges are more flexible based on your fundraising goals.

However, the downside to this approach, is that if your crowdfunding campaign is unsuccessful, you will have paid the monthly fee with no return benefit. So, it depends upon how confident you feel that your project will definitely be able to attract investors

Benefits of Using Fundable for Crowdfunding For Small Business and Startups

  • A straightforward monthly fee approach that leads to lower payment fees
  • The company offers consulting services for startups to help them create successful crowdfunding campaigns (at an extra charge.)
  • As long as you are a subscriber to the service you can create a campaign (as long as it falls within Fundable regulations.)

Things to Consider Before Using Fundable

  • Flat rate fee whether you are successful in fundraising or not.
  • If you want to unsubscribe you cannot do so through an automated process.

Takeaway: The Top 5 Best Crowdfunding Sites for Startups and Small Businesses

Choosing one of the best crowdfunding sites for startups is a crucial decision and not one that should be undertaken without doing some research**. Luckily, you can get started with our list of the Top 5 Best Crowdfunding Sites for Startups and Small businesses - take your time and make sure to choose the best match for your start-up idea.**

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