Crowdfunding means soliciting financial contributions from large number of people who belong to online community for our personal or business project. Generally, this money giving action is called as donation but there is a difference between donation and crowdfunding.
Crowdfunding is allowing online sales of a small stock to a huge pool of investors, this is basically related to American jobs. Although this act has not been passed yet but you can raise funds for your project without selling any stocks.
Crowdfunding works simple as you have to upload your project to potential investors who fund your project if they are interested in it. You start crowdfunding exercise for free and you have to pay only when you raise funds. This is a great way of publicity too as many people go through your idea so you can see the potential of your idea to attract people and their needs.
If crowdfunding is a way to go for your project then choosing right crowdfunding site for your project is also very crucial step. Below is a list of the top crowdfunding sites in the world which focuses on different models and needs from which a person can choose as per his demands and needs.
Here are the Top 15 Best Crowdfunding Sites In The World in 2017-2018
MicroVentures was founded in 2009. It connects both accredited and non accredited investors to the startup companies, businesses and services looking to raise funds or participate in select market opportunities. MicroVentures does detailed analysis of the companies that apply to be on its platform. It selects only 0.5% companies on the basis of the risk involved and odds of profitability. It takes 10% fee in which 5% by the customer and 5% by the investor for each successful raise otherwise the money is returned to the investor. It funds startups of several fields like technology, consumer products and services, healthcare, telecommunication industry and media.
Website : circleup.com
CircleUp was founded in 2011. CircleUp focuses on early stage consumer products and retail companies. It provides two type of funds, circle and mixed fund. It is best for the one who produces tangible products and want their funding partners. It has helped several consumer companies like Rabbits, Episencial, Melt and many more.
Fundable is founded in 2012. It helps to raise money for the both of those who are looking for equity campaigns and rewards. It focuses on small businesses from industries like food and beverage, health and beauty, technology and fitness. It charges $99 to $299 every month to host a fund raise on it.
AngelList is a U.S . website which was launched in 2010. It is a website for the startups, job seekers who want to work in startups and angel investors. The accredited investors and institutions present in it are funding top tech deals. The site allow startups to raise money from angel investors without any charges.
Website: www. somolend.com
SomoLend is a U.S. based website. It focuses on small businesses and provide debt based investment funding to them. It has also partnered to many banks to help the small business owners through loans. It is expanding in many cities in the United States.
Crowdfunder is a Los Angeles based website. It is a platform for raising investment for the small businesses and startups by providing debt, selling equity and revenue based securities. It has angel investors and venture capital for funding. In this crowdfunding is different, all the projects submitted are voted by the public and top 10 startups pitch at the live Vegas Tech Fund and the ultimate winner gets $500,000 in funding.
If you are seeking for donation based funding to build a mobile app, then appbackr is the place. It offers the chance to let backers fund the apps which are currently on sale or in the stage of development and then backers could earn their money by backing the app. This may sound complicated but once mastering it will make you earn a nice amount.
Appbackr takes a certain amount out of your fund to run their business. The amount is not fixed and depends on your app’s price and on several other factors.
Sellaband is a music website which allows artists to raise the fund for their music or to record a professional album. It uses mechanism of crowdfunding by connecting musicians to their fans. It offers 100% music creation freedom ,i.e, you can choose any label, management company or publisher without any limitations. It charges 15% out of the budget in order to support their full time working assistants.
PledgeMusic is an online crowdfunding website to connect musicians to their fan base to pre sell, market and distribute music projects like recordings, concerts and music videos. It also charges 15% out of the fund raised.
Crowdrise is mainly a crowdfunding website to raise money for charity. In this people fund for animal welfare, arts, cultures, education, diseases, religion and education. This does not mean that a person can’t raise money for himself, the fund can be raised for birthdays, weddings or college projects. It this there are separate sections for fundraising for fundraiser and non profit categories. In this flat 4.95% charge is deducted including extra charges for profit fundraising and for no profit fundraising, you could choose from a range of account types from free to one with $199 monthly fee.
Razoo is a site which focuses on causes than profitable projects but they do have dedicated sections for non profit fundraising projects. It divides fundraisers into four categories of Non profits, Individuals, Corporations and Foundations. A fundraiser can apply in the category suits him the best. One major benefit of Razoo is that it charges very low rate of just 2.9% of total fund whereas all other sites charge higher than 4% without including credit card charges.
GoFundMe is a crowdfunding platform that allow people in some countries to raise money for the life events like celebrations, graduations or personal traveling or the challenging circumstances like accidents, illness or pet’s medication fee. It charges 5% from total donation you receive.
RocketHub is a popular station to launch projects from any field like web developing, fashion designing or any field. The site boasts three simple steps to upload your project and then you can track the status and progress of your project. The best feature of RocketHub is its FuelPad and LaunchPad which powers the donation based funding. RocketHub charges 4% from a successful project and 8% for the project ended without reaching financial goal. It also charges 4% credit card charge.
Indiegogo is an international website which allows people to solicit funds for an idea, charity or start up business. The site runs on the reward system that means the donors, investors or customers donate a gift to the fundraiser rather than an equity stake in the company. The website charges 5% from the raised fund with charges of credit card and PayPal.
Kickstarter is the hottest crowdfunding website which raised a total of $220 million funds. It funds the creative projects and not the projects for any cause of charity. The major disadvantage is you have to be permanent US resident to earn on it. The website charges 5% fee with credit card charges for every successful project.
When it comes to putting your startup plans or dream inventions into motion, it is very important to know which things to do in correct sequence. We have provided a list of top 15 crowdfunding sites to fulfill your dreams, be wary of the fees you will be forking out and the rewards, benefits and perks for each site.