Here we review and compare the popular Crowdfunding Websites with pricing to help you select the best Crowdfunding Site for startups and small businesses:
Raising funds for your business or passion project is no easy task. Millions of ideas get smothered even before they have a chance to surface because of insufficient funds. Now traditionally, people could take out bank loans, seek angel investors or gather money from friends and family to fuel their ventures.
In the grand scheme of things, however, such methods have always proved fruitless. Individuals relying on the above methods of funding usually end up buried under a mountain of debt.
Fortunately, there are platforms online that allow you to raise money from a group of individuals who collectively invest in your project, idea, or business venture to turn it into a tangible reality.
What You Will Learn:
Review of Top Crowdfunding Websites
We are, of course, talking about crowdfunding websites. Apart from raising money, these platforms can also help generate interest for your ideas. From films to tech and scientific journals to startups, many raw ideas have been realized over the years on crowdfunding websites to varying degrees of success.
Suffice to say, whatever reason you may have for fundraising, there is a crowdfunding site waiting to cater to your needs. In this article, we will look at such sites that have helped many individuals gather money for their projects or ideas and can do the same for you.
Expert Advice:
- Determine what you need crowdfunding for. Go for sites that facilitate crowdfunding for business or your type of idea/project. For instance, if you want to raise money for a film, make sure the platform allows funding for such a project.
- The site you choose should have a good history of raising funds.
- Preferably, go for an established crowdfunding site that has earned rave reviews in the industry and enjoys a good success rate of funding projects.
- Try to go for sites that have operations worldwide to increase your pool of potential investors.
- Most platforms charge a platform fee, which is basically a small percentage share of collected funds. Go for sites that demand a minor reasonable share of raised money for the privilege of using their platform.
Market Trends: According to a report published by finance online, the global crowdfunding market that stood at 30 billion USD in 2019 has the potential to grow by 196.36 billion USD between 2021 and 2025. As of today, the US is considered to be the top country in crowdfunding, valued at $504 million. Following the US are UK and France, with values of $62 million and $52 million, respectively.
Frequently Asked Questions
Q #1) Which Crowdfunding Site is the best?
Answer: There are a plethora of options at your disposal today for crowdfunding options. However, only a few of these platforms are effective in raising money. Based on the reputation they enjoy and the volume of projects they’ve helped fund, the following are some of the best crowdfunding websites:
- Indiegogo
- Kickstarter
- SeedInvest
- Patreon
- Crowd Supply
Q #2) Is crowdfunding free money?
Answer: As crowdfunding basically involves raising money from a collective pool of money, most people mistake it for an exercise in getting free money. This, however, is a misconception.
Most top sites charge a small fee, which basically entails a percentage of the total money raised. Indiegogo, for instance, charges a 5% platform fee to all who come to raise money on their platform. So although crowdfunding is indeed a cost-effective way of raising funds, it isn’t exactly cost-free.
Q #3) What are the different types of crowdfunding that exist?
Answer: There are 4 major types:
- Donation: Donation-based crowdfunding involves people investing money for an idea, venture, or cause anticipating nothing in return.
- Debt: Here, the money raised is basically a loan and should be repaid with interest before a set deadline.
- Rewards: This is the opposite of ‘Donation’ as the people who donate the money also get something in return. This can be a promotional T-shirt, a ticket for a film’s premiere, etc.
- Equity: This pertains to the practice of giving a portion of one’s company in exchange for funding.
Q #4) When should Crowdfunding be used?
Answer: It should be used by startups, budding filmmakers, and research specialists to fund their projects. Startups can use crowdfunding after they’ve launched their business and seek to expand their operations via alternative funds.
Filmmakers should use it after they’ve shot some portion of their films and can use the footage to entice investors on such platforms to fund the project. It is wise to have something tangible to show of your idea or project before you go on crowdfunding platforms to raise funds for them.
Q #5) Is Crowdfunding Legal in the US?
Answer: It is a legitimate enterprise in the US. In fact, the US accounted for a maximum of all projects that were completely funded by crowdfunding. These sites in the US have helped raise money for books, films, television projects, technology, scientific research, and startups.
List of the Best Crowdfunding Websites
Here is the list of some popular small business crowdfunding websites:
- Indiegogo
- Kickstarter
- SeedInvest
- Patreon
- Crowd Supply
- Mightycause
- Fundly
- GoGetFunding
- Experiment
- StartEngine
Comparing Crowdfunding Sites for Strtups and Businesses
| Name | Best For | Price | Ratings |
|---|---|---|---|
| Indiegogo | Integration with Google and Meta | 5% Platform fee with additional 3-5% third-party processing fee on funds raised. |  |
| Kickstarter | Artists and Creators | 5% Platform fee on top of 3-5% processing fee per transaction. | |
| SeedInvest | Start-up funding | 5% placement fee and 5%equity fee. |  |
| Patreon | Independent Creators | Lite plan – 5% platform fee, Pro plan – 8% platform fee, Premium Plan – 12% fee plus. Processing fees of 2.9% also apply. | |
| Crowd Supply | Funding and Selling Hardware projects | Standard Plan – 5% of gross sales, Custom plan ranging 6-15% of gross sales. | |
Detailed review:
#1) Indiegogo
Best for integration with Google and Meta.
Founded back in 2008, Indiegogo has helped fund over 800000 projects since its inception. The platform is available in 235 countries and territories and allows you to create a campaign to fund any type of cause or idea. The campaign you create on the platform can last up to 60 days. A small platform fee applies to the funds you gather.
The money raised is transferred to your bank within 15 days. Another thing we really like about Indiegogo is the seamless integration it facilitates with platforms like Google and Meta, thus helping you promote a campaign and reach more potential investors.
What we like:
- Its integration with Google and Social Media channels.
- Global operations.
- An A+ Accreditation from BBB.
What we don’t like:
- The 3% third-party processing fee is on top of the platform fee.
Verdict: Indiegogo with A+ Accreditation from the BBB and worldwide operations, is an effective fundraising site, especially for entrepreneurs and investors. It also boasts a high overall success rate for projects being funded successfully, which is why it is top on our list.
Price: 5% Platform fee with additional 3-5% third-party processing fee on funds raised.
Website: Indiegogo
#2) Kickstarter
Best for artists and creators.
Kickstarter is perhaps the biggest name when it comes to crowdfunding in artistic circles. Launched in 2009, artists, musicians, creators, and filmmakers have primarily used the platform to turn their ideas into reality. To create a fundraising campaign on the platform, set your goal amount and specify the time within which you want to achieve this goal.
Of course, your campaign will go through a vetting process before being approved. This keeps the platform devoid of fraudulent scams, thus earning the trust of investors. You can also set a personal experience or gift aside to reward your donors. There will be a 14-day waiting period for the raised money if you do accomplish your set goal.
What we like:
- The campaign vetting process.
- Covering funding for all artistic verticals.
- Setting reward-based crowdfunding.
- Easy to create campaigns.
What we don’t like:
- An all-or-nothing approach to crowdfunding.
Verdict: Kickstarter is a widely popular crowdfunding platform that has been successfully used by hundreds of creators and artists to fund their projects. It requires you to fulfill your funding goals, which means you do not receive your funds unless your set funding target is achieved.
Apart from that, however, the platform makes it easy to create campaigns and find investors for your ideas.
Price: 5% Platform fee on top of 3-5% processing fee per transaction.
Website: Kickstarter
#3) SeedInvest
Best for startup funding.
SeedInvest was conceived with the notion of making fundraising easier for budding startups. After attracting over 500000 investors over the course of its run, we can safely claim that it is one of the best crowdfunding websites for startups.
If you are a startup founder, all you have to do is sign-up to create a SeedInvest account, fill an application, and qualify for a screening process.
If the platform deems you fit to raise funds on it, you will need to create your official profile on SeedInvest. There is a calculator provided by SeedInvest which gives you an estimate of how much it will cost you to raise money on the platform. Campaigns on SeedInvest can last anywhere from 45 days to six months.
What we like:
- Raise interest in your startups among venture capitalists and angel investors.
- A long history of successfully funded startups.
- No need to pay if the fundraising campaign fails.
- Cost estimating calculator.
What we don’t like:
- The often long and arduous screening process.
Verdict: SeedInvest is a fantastic platform we recommend to all startups. Not only can the platform help you connect with noted investors and venture capitalists, but also help create a buzz around your new enterprise. The platform has helped fund over 500 startups ever since it first came to public attention.
Price: SeedInvest takes a cut from raised money. This cut involves a 5% placement fee and a 5% equity fee.
Website: SeedInvest
#4) Patreon
Best for independent creators on platforms like YouTube.
Patreon is a subscription-based fundraising platform that helped independent creators like YouTubers establish a steady inflow of funds raised from individual subscribers. The platform skyrocketed in popularity after YouTube started tightening up its monetization policies, making it harder for them to earn ad revenue on the platform.
Patreon has helped over 200000 podcasters, musicians, artists, writers, and creators raise $2billion in funds to support their work. You can basically create monthly subscription plans for your audience, wherein they can support you for free or for Patreon-exclusive content in return.
What we like:
- Custom create subscription plans.
- Integrates seamlessly with platforms like YouTube, Vimeo, and MailChimp.
- Host content that is only available on the Patreon platform for paying subscribers.
What we don’t like:
- The fees can be expensive with platform fees starting from 5% and going to 12%, depending on the plan you choose
Verdict: Patreon is like a godsend for independent creators, as it allows them to open up a new revenue channel by which their audience can support them with voluntary donations. We highly recommended it for independent creators that are only starting out on platforms like YouTube and Vimeo.
Price: Lite plan – 5% platform fee, Pro plan – 8% platform fee, Premium Plan – 12% fee plus. Processing fees of 2.9% also apply.
Website: Patreon
#5) Crowd Supply
Best for funding and selling hardware projects.
Crowd Supply exists to serve one mission and one mission only, helping people raise money for hardware and projects that are more personal in nature. Not only can you raise funds for your hardware products here, but you can also list them for sale on the platform itself.
The platform has a very clean, e-store-like interface, which displays all the latest projects that are being funded. The products are listed with information that details how much money has been raised for a project and how many backers the project has gathered thus far.
What we like:
- Campaign Management.
- Media Asset Creation.
- Dedicated PR team to help promote your product.
- Easy creation and launch of a fundraising campaign.
What we don’t like:
- Only meant for funding hardware products.
Verdict: Crowd Supply should be right up your alley if you have a hardware product idea that you want to fund and bring in front of potential customers. With so many platforms dedicated to IP funding, Crowd Supply comes off as a fresh diversion from tradition.
Price: Standard Plan – 5% of gross sales, Custom plan ranging 6-15% of gross sales.
Website: Crowd Supply
#6) Mightycause
Best for fundraising for Non-Profit Enterprises.
Mightycause is one of the best crowdfunding websites for non-profit enterprises because of its low cost. The platform allows individuals and organizations to raise money for various causes in a flexible manner.
Launched in 2006, the platform has helped over 150000 causes. Individuals have the option of creating a campaign for themselves or launching fundraisers on behalf of a non-profit organization.
When it comes to actual fundraising, you can create peer-to-peer, event-related, and year-round fundraising campaigns. You also have the option of availing of its branding, marketing, and donor management features if you choose to upgrade to its advanced, costlier plan.
What we like:
- Integrates with CRM platforms like Salesforce.
- Integrate with most social media platforms.
- Establish year-round, event-related, or giving days fundraising campaigns
- Request free demo.
What we don’t like:
- Promotional features are part of the costlier-paid plan.
Verdict: Mightycause is one of the very few fundraising campaigns that we feel comfortable recommending to raise money for non-profit or social causes. The platform charges a modest processing fee and offers you the flexibility to launch a wide variety of campaigns.
Price: 1.2% processing fee plus 29 cents per transaction. $99 per month for added marketing and branding features.
Website: Mightycause
#7) Fundly
Best for fast money withdrawal.
Fundly allows you to raise money for just about anything. From movies to funding startups, Fundly can help you raise funds without any raise limitations or startup fees. Aside from the traditional domains, Fundly has also been used to successfully raise money for politics and personal medical bills.
Perhaps what really makes Fundly outshine its competitors is the ability it grants users to cash out any time they wish. You can withdraw payment within 48 hours of registered donations. The platform also facilitates automatic transfers of funds.
What we like:
- No restrictions on the minimum amount to raise.
- Create campaigns for virtually anything.
- Cash-out on daily, weekly, and monthly schedules.
What we don’t like:
- The credit card processing fee attached to the platform fee is costly.
Verdict: Fundly is a great crowdfunding site that allows you to raise money for a wide variety of reasons with no minimum amount restrictions. The platform particularly shines because of the freedom it gives users to withdraw amounts without a long waiting period.
Price: 4.9% platform fee with 2.9% credit card processing fee and .30 USD per transaction.
Website: Fundly
#8) GoGetFunding
Best for global fundraising.
GoGetFunding is a crowdfunding platform that benefits from having operations worldwide. This allows you to raise funds for projects internationally. The platform also features multi-currency support, thus making the process of raising funds globally simple.
Although you’ll find a majority of campaigns here being for personal causes, the platform also helps raise funds for businesses.
Another thing we really like about GoGetFunding is the fact that there is absolutely no limit to how much money you can raise through this platform. There are added PR-related benefits to enjoy with GoGetFunding as well, which allow you to get traction for your launched fundraising campaigns.
What we like:
- No fundraising limits.
- Worldwide operations.
- Multi-currency support.
- Dedicated PR support.
What we don’t like:
- The success rate for business-related fundraising on the platform is very low.
Verdict: GoGetFunding is a decent crowdfunding platform we recommend if you want to raise funds for personal causes. There are no limits to how much you can raise and you also get added PR support to generate interest for your launched campaigns.
Price: 4% platform fee
Website: GoGetFunding
#9) Experiment
Best for funding scientific research and discoveries.
Experiment is a crowdfunding site best known for helping the science community raise funds for scientific research and discoveries.
Over the years, the platform has been used to fund projects like dinosaur fossil excavation and the study of monasteries from the dark ages. It is extremely difficult to find funding for a project here if your work isn’t groundbreaking.
Still, Experiment is a great alternative to government grant programs as there is a low barrier to entry. There are also no overhead costs that usually come with grants. The projects are funded by the backers present on the site completely.
What we like:
- The low entry barrier.
- The ease of campaign creation.
- The heightened focus on scientific projects.
What we don’t like:
- The high platform fee.
Verdict: Experiment is a platform ideal for scientists and academic professionals who want to raise money for their projects, especially as it serves as a better alternative to university grants. The platform fee of 8%, however, can be considerably costly.
Price: Platform fee – 8% of the money raised with 3-5% processing fees.
Website: Experiment
Further Reading => List of the BEST Crowdsourcing Platforms (Websites)
#10) StartEngine
Best for investors seeking to invest money.
StartEngine is a platform designed for investors who are looking for promising prospects to invest their money in. The platform excels because it affords regular people the opportunity to invest money directly into companies they like for equity in return. People can start investing on this platform with as little as $100.
StartEngine also helps you make an informed decision by listing down valuable company information like its valuation, number of investors, price per share, etc. The process of investing itself is very simple. All you have to do is click the ‘Invest Now’ button, fill out your information, and give your payment details.
What we like:
- Start investing with as little as $100.
- Simple investment procedure.
- Detailed information of company shown.
- Home to more than 600000 investors.
What we don’t like:
- Relatively less experience in the industry
Verdict: StartEngine, in the very brief time it has existed, has created a strong network of over 600000 investors and has helped over 500 businesses raise $450 million as of today. The platform is ideal for casual folks with no knowledge of the stock market to invest in.
Price: 3.5% transaction fee.
Website: StartEngine
Other Crowdfunding Websites
#11) Helio
Best for equity-based crowdfunding
Helio is ideal for startups, especially in the consumer goods industry raise money through equity and credit-based crowdfunding. The platform particularly shines because of its ‘Helio’ feature, which allows you to predict the next breakout company is.
Helio also allows you to consult with expert credit advisors to identify the best financial solutions for a business.
Price: Depends on funding requirement.
Website: Helio
#12) Fundable
Best for selling products and merchandise.
Fundable allows you to not only raise money for your products but also find potential customers who are interested in buying them. With Fundable, you have the option to choose whether to raise funds through investors or by selling products and merchandise.
The former program is recommended for companies with funding goals ranging between $50000 to $10 million.
Price: $179/month for fundraising. The reward-based program entails a processing fee of $3.5 with $.30 per transaction on top.
Website: Fundable
#13) Crowdcube
Best for simple investing.
Crowdcube is a platform similar to StartEngine as it also turns regular people into investors. This equity-based crowdfunding platform supports seed, earl, and growth-stage financing. The platform helps you with funding all the way, getting involved in helping you establish realistic targets, effective pitch, and a rational valuation.
Price: 7% platform fee on money raised successfully
Website: Crowdcube
#14) Rally
Best for online Analytical Dashboards.
Rally helps you create and launch fundraising campaigns for a wide variety of personal causes. To create a campaign, start by creating your dedicated funding page by uploading images and videos. You can then share your funding page online via integrated social media buttons. You can also track your donations in real-time via Rally’s intuitive online dashboard.
Price: 5 % platform fee with 2.9% +.30 cents credit card processing fee.
Website: Rally
Conclusion
Crowdfunding has long been the go-to method of raising funds for startups and artists in the modern age. Websites that facilitate online fundraising can help businesses and individuals raise money for a wide variety of reasons in a cost-effective and time-efficient manner.
Platforms like Kickstarter, Patreon, etc. have been behind the success of many successful businesses and creators we see today. All the above-mentioned websites are some of the best crowdfunding platforms being used to raise funds worldwide. You can choose the website that best fits your needs depending on the type of funding and how much funding you need.
As for our recommendation, we suggest giving Indiegogo a chance if you want to raise funds for your business. Kickstarter, on the other hand, is ideal for funding artistic ventures.
Research Process:
- We spent 13 hours researching and writing this article so you can have summarized and insightful information on which Crowdfunding Website will best suit you.
- Total website researched – 30
- Total website shortlisted – 14