June 30, 2020 5 min read

Crowdfunding has become increasingly popular in recent years, but what is crowdfunding, and which platforms offer the best features? In this guide, we’ll take a closer look at some of the leading crowdfunding sites, exploring the pros and cons in detail. 

More and more people are choosing to raise funds through crowdfunding. Crowdfunding involves asking a large number of people to donate to a specific cause, initiative, or business proposition. The range of projects is vast. People are looking to crowdfunding to generate cash for everything from ingenious product ideas and business plans to charitable causes and fundraising for individuals who need financial or medical help and support. As crowdfunding has become more commonplace, the number of platforms has increased. Today, the more significant sites receive millions of hits every month, but smaller, less popular options can offer advantages too. This article examines some of the leading crowdfunding platforms. If you’re looking to raise money, hopefully, it’ll help you choose which site to use. Looking for crowdfunding tools? Check us out at C Larboard!

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Indiegogo

US crowdfunding platform Indiegogo was launched in 2008, and it is one of the most high-profile platformsout there. Attracting over 1 million visitors per month, Indiegogo is popular because of its reach and its diversity. This is a site that covers a vast array of projects, providing benefits for those supporting nonprofits and budding entrepreneurs, creatives, athletes and inventors looking to take the next step in their careers. Some Indiegogo projects have raised more than $10 million.

Pros

  • Exposure: Indiegogo is one of the most frequently visited crowdfunding sites.
  • Flexibility: you can choose between a fixed or flexible fundraising target. The flexible option lets you keep the money you’ve raised, even if you fall short of the desired total. 
  • Free to get started: set up your crowdfunding campaign without paying a cent.
  • Versatility: Indiegogo covers multiple areas and interests, providing a useful, far-reaching base for a diverse range of fundraisers.

Cons

  • Higher fees for individuals who do not reach their funding goal: if you don’t hit your target, you’ll pay more.
  • Kickstarter attracts more monthly visitors. 

Fees

Most crowdfunding sites charge fees. For Indiegogo, customers pay a 5% fee on the total amount, which is deducted from the amount raised. You also need to factor in the processing and transaction fees. For US transactions, the charge is 2.9% + $0.30. 

Who can benefit from Indiegogo?

Indiegogo is suited to almost all fundraisers. This platform covers a vast range of areas, and it’s advantageous for profitable and nonprofit causes.

Kickstarter

Kickstarter is the world’s largest crowdfunding platform, attracting over 5 million visitors per month. Best known for its creative projects, Kickstarter is an excellent site for those looking to set up new businesses, gain investment for a groundbreaking product or fund a new album, book, or movie. 

Pros

  • Get your project noticed: Kickstarter has a high profile, and it draws visitors from all over the world. This is the place to get your campaign noticed. 
  • Free sign-up.
  • Excellent track record: some of the biggest projects have raised over $10 million

Cons

  • Fixed funding goals: with Kickstarter, if you don’t hit your target, you don’t get the funds. This can be positive and negative, as some projects may not be viable without the full amount. If this was the case, and you took the funds raised, you may find yourself unable to fulfill your objectives and letting donors down. 

Who Is Kickstarter Best for?

Kickstarter is a fabulous site for creative people looking for financial backingto monetize their talents and passions. This is a platform that supports innovation and originality, and there’s a veritable treasure trove of products and projects available to view and support. Music and technology are key areas that tend to attract a lot of interest. Even celebrities and pioneering tech corporations have used Kickstarter to fund movies, music videos, and newfangled gadgets and gizmos.

Fees

Kickstarter charges a 5% overall fee plus a 3%-5% processing fee per transaction. 

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The Alternatives

Kickstarter and Indiegogo are often top of the list when crowdfunding platforms come up in conversation, but there are alternatives

GoFundMe

GoFundMe is a personal crowdfunding platform that caters to individuals hoping to raise money for business ventures, creative projects, and causes, such as medical treatment. On this site, you can donate to keep a company afloat, help a couple pay for a wedding, or support a desperate student to go to college. 

Pros

  • Reach: GoFundMe is snowballing, with more than 2 million monthly visitors.
  • Keep your funds, even if you don’t reach the target.

Cons

  • They have higher fees than many other crowdfunding sites. Costs are also the same, regardless of whether you hit your goal or not.

Who Is GoFundMe Aimed at?

GoFundMe is best suited to people who are looking to generate funds for a personal project. If you have ambitions to launch a blog, to get to college, or to raise money for healthcare provision, for example, this could be the best option for you. 

Fundable

Fundable is a corporate crowdfunding platform, which is designed for small businesses and startupsUnlike other sites, Fundable offers an opportunity to benefit from donating equity or rewards. 

Pros

  • It is ideally suited to aspiring entrepreneurs.
  • Gain exposure for your idea and promote your brand.
  • Choose from flexible options, including reward and equity-based initiatives.

Cons

  • It is limited to business projects.

Who Is Fundable Suited for?

Fundable is an excellent option for those keen to set up their own company and facilitate growth and development. 

Fees

Fundable has a slightly different approach to fees, charging a set price of $179 per month. Transaction fees also apply for reward campaigns.

RocketHub

RocketHub is a global crowdfunding platform, which focuses on four key areasart, science, social, and business. The main selling point of RocketHub is the association with A&E Networks, which offers exposure and the opportunity to earn additional funds for your campaign through the Project Startup program.

Pros

  • Opportunity to benefit from the A&E Project Startup initiative.
  • Flexible funding options: you will have access to the funds you generate, even if you don’t hit your project target.
  • Option to offer rewards in exchange for donations.
  • Visitors can vote on projects, increasing exposure.

Cons

  • Smaller than other platforms.
  • Higher fees if you don’t reach your goal.

Who Can Benefit From RocketHub?

RocketHub draws attention from visitors worldwide, and it offers fantastic opportunities for budding moguls through the Project Startup scheme. 

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Crowdfunding is an increasingly popular way for individuals and groups to raise money. There are several platforms available, and each one offers pros and cons. Before you decide which site you want to use to launch your funding campaign, think carefully about how much money you want to raise and what you’re generating funds for. For example, some sites, such as Kickstarter and Indiegogo, cover a wide range of bases, while others, for instance, Fundable, are more exclusive. Weigh the pros and cons, compare fees, and make sure you have a solid understanding of how the system works. Need a hand? We do business consultation.

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