If you have a brilliant idea for a startup, but you lack the funds to make it happen, you might want to consider crowdfunding. Crowdfunding is a way of raising money from a large number of people who each contribute a small amount. Crowdfunding can help you validate your idea, build a community of supporters, and get exposure for your project.
But how do you choose the best crowdfunding websites for your startup? There are many platforms out there, each with its features, fees, and success rates. To help you decide, we have compiled a list of the 7 best crowdfunding websites for startups in 2023.
Best Crowdfunding websites for Startups
Kickstarter
Kickstarter is the most popular and well-known crowdfunding website for creative projects. It has helped fund over 200,000 projects in categories such as art, design, film, games, music, publishing, and technology. Kickstarter operates on an all-or-nothing model, meaning that you only get the money if you reach your funding goal within a specified time frame. If you fail to do so, all the pledges are returned to the backers. Kickstarter charges a 5% fee on the funds raised, plus payment processing fees of 3% to 5%.
Indiegogo
Indiegogo is another popular crowdfunding website for creative and entrepreneurial projects. It has a more flexible funding model than Kickstarter, allowing you to choose between fixed or flexible campaigns. Fixed campaigns are similar to Kickstarter’s all-or-nothing model, while flexible campaigns let you keep whatever you raise, even if you don’t reach your goal. Indiegogo also offers an InDemand feature, which lets you continue raising funds after your campaign ends. Indiegogo charges a 5% fee on the funds raised, plus payment processing fees of 2.9% to 3%.
Seedrs
Seedrs is a crowdfunding website for startups that want to raise equity capital from investors. It allows you to sell shares of your company to anyone interested in backing your business. Seedrs handles the legal and administrative aspects of the equity crowdfunding process, such as due diligence, valuation, and shareholder agreements. Seedrs charges a 6% fee on the funds raised, plus a 0.5% payment processing fee.
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Crowdcube
Crowdcube is another equity crowdfunding website for startups that want to raise money from investors. It has a similar model to Seedrs, but it also offers rewards-based crowdfunding for non-equity projects. Crowdcube has a larger network of investors than Seedrs, but it also has a higher minimum funding target of £10,000. Crowdcube charges a 7% fee on the funds raised, plus a 0.75% to 1.25% payment processing fee.
Patreon
Patreon is a crowdfunding website for creators who want to earn a regular income from their fans or patrons. It allows you to offer exclusive content, perks, or experiences to your supporters in exchange for a monthly or per-creation pledge. Patreon is ideal for creators who produce ongoing content, such as podcasts, videos, music, comics, or blogs. Patreon charges a 5% to 12% fee on the funds raised, depending on the plan you choose, plus payment processing fees of 2.9% to 5%.
GoFundMe
GoFundMe is a crowdfunding website for personal causes and charitable donations. It allows you to raise money for yourself or someone else who needs financial help due to medical bills, emergencies, education, travel, or other life events. GoFundMe has no minimum or maximum funding goals and no deadlines. It also has a 0% platform fee for personal campaigns in most countries (except the US and Canada), but it charges payment processing fees of 1.9% to 2.9%, plus $0.30 per donation.
Fundable
Fundable is a crowdfunding website for startups that want to raise either rewards-based or equity-based funding from backers or investors. It allows you to create a professional pitch deck and showcase your product or service to potential supporters. Fundable has no success fees on the funds raised, but it charges a monthly subscription fee of $179 to use the platform.
Conclusion
Ultimately, the choice of crowdfunding platform depends on the specific needs and goals of your startup. Each of these platforms has its unique strengths and advantages, so it’s essential to thoroughly research and assess which one aligns best with your business model and fundraising strategy. Crowdfunding has democratized fundraising, providing startups with unprecedented opportunities to bring their visions to life, and these platforms are valuable tools to help achieve those aspirations.