When looking for a funding for your startup project, you must have surely came across the term “crowd funding” for quite a few times.
What exactly is crowd funding?
Crowd funding is a process wherein a large number of people come together to contribute into a project in monetary terms via crowd funding sites over Internet. The process typically involves three types of roles: a project initiator who discovers the project idea, a mediator who brings together project initiator and contributors by providing a platform, and lastly a big pool of individuals who contribute individually to the whole project.
If you have been dealing with this term for a while now for funding your project, you must already be aware of the crowd funding sites who help to build dream businesses. There are lots many of them, and to pick the one most reliable in your case could be a daunting task. Kickstarter is definitely the leading crowd-funding site in the world, but it is ideally not a good idea to rely upon just a single site.
With increasing number of crowd funding sites every day, it might be difficult to scan the best among the lot. Luckily, we have gathered a collection of a few ones, which in our opinion are quite legit and could be trusted without any second thoughts. Let us have a breakdown of each one of them just for you.
Kickstarter
It is a globally accepted synonym for crowd funding and the most popular crowd funding site in the world.
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5% transaction fees on flexible funding based on all or nothing model. Around 3-5% transaction fees on fixed funding model.
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A high traffic site due to an extreme popularity leading to tremendous project visibility.
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It is difficult to get an approval as only top-notch creative projects hold a chance. In addition, only US and UK based projects can apply.
Indiegogo
The only competition to Kickstarter and the most flexible crowd-funding site in the world with a user base even exceeding that of Kickstarter.
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4% transaction fees on successful projects and 9% on unsuccessful ones that haven’t met the goal. 3% transaction fees on fixed funding model.
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There is practically no approval process and with all countries covered, almost every single project instantly approved.
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The transaction fees are high if the project does not reach its goal but still the initiator gets the goal accomplishments so far.
GoFundMe
Among top 3 crowd funding sites after Kickstarter & Indiegogo with a stronger focus on charities.
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5% transaction fees on all projects as well as a 3% additional transaction fees for requesting payments.
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Have already raised $160 million in funding, and donations are hold by project owner, even if the monetary goal is not met.
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They charge high transaction fees as compared to others but still have a responsive customer service.
RocketHub
It is a crowd funding website in collaboration with A&E project startup offering unique visibility.
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4% transaction fees on completed projects and 8% on partial ones. 4% additional transaction fees for requesting payments.
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Integrated success school offers enhanced business and project tools for smooth navigation of user-friendly interfaces.
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Less traffic when compared to Kickstarter, Indiegogo, or GoFundMe.
FundRazr
A crowd funding place completely dedicated to money raising for non-profit organizations or personal causes.
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Extremely cheap transaction fees with an in-depth social network integration to extend you friends or family network.
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5% transaction fees for both completed projects and partial ones. 2.2% + $0.03 additional transaction fees for requesting payments.
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Less than 5% creative or entrepreneurial projects leading to more difficulty to connect with investors or entrepreneurs.
GoGetFunding
Create a short film or pay dues for your pet care with this fund raising site from London.
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You can keep the funds what you have raised even with an incomplete goal and anyone can post a project easily.
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3.5% transaction fees for both completed projects and partial ones. 2.9% additional transaction fees for requesting payments.
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Very few creative or entrepreneurial projects so not meant for high-end projects
Crowdfunder
If you are looking for a blend of investment and donation based crowd funding from both offline and online sources then this site is just right for you.
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Approach both offline and online investors to escalate your business.
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5% transaction fees for both completed projects and partial ones. 1.9% – 5% additional amazon FPS transaction fees for requesting payments.
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This platform meant for profit making ventures only.
StartSomeGood
Individuals, non-profit organizations, and social entrepreneurs can use this platform for their business needs.
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A global site attracts niche individuals, non-profits, and other social causes.
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5% transaction fees for completed projects following a ”tipping point” model. 3% additional transaction fees for requesting payments.
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Since only social projects targeted, it has a much smaller reach as compared to other crowd funding sites.
There are other plenty of crowd funding sites across the web such as Spot.us, Moola Hoop, RockThePost, Ulule, and many more. How to choose the best one? Sit back and relax. Give us ample amount of time to analyze each site individually that fits your project from all possible perspectives i.e. usability, other projects quality, potential investors, purpose of raising fund, etc. We will help you with the end-to-end crowd funding process to jump-start with your project and accomplish your goal.
