Funds are the livewire of any business, and a failure to generate any could spell doom for many. There are many ways to raise funds in today’s world, and not the least, crowdfunding is a unique option to explore.
What is Crowdfunding?
Crowdfunding is a fundraising strategy for entrepreneurs and it serves to authenticate the demand for their unique ideas in the market before even starting the production.
The candidate presents his idea to the crowd who, if interested in it, invests in that idea collectively through pre-order buying, investments and even donations.
Crowdfunding is different from the traditional fundraising methods as it doesn’t focus on a single entity for the sake of investment rather multiple small amount investments are contributed by a large group of individuals.
In exchange for this support, these investors, also known as ‘Backers’ are provided with various benefits including:
- The opportunity to pre-order the product and have the authority to give their opinion in its development.
- A personal link to the founding team of the project.
- The chance to become one of the early adopters of the upcoming product.
- Exclusive offers, like a massive early discount at the product launch.
Every crowdfunding site has different features, like user base and fee, etc. but the core concept is same. You submit your proposal with a goal and deadline and then do online promotion of your campaign, usually through social media.
There are various crowdfunding sites, but we have shortlisted the 7 best of them. Take a look and it will help you to decide which site to choose for the fundraising of your next project.
Launched in 2009, Kickstarter is the most popular and reliable crowdfunding platform to get support for your innovative ideas.
Till now, this platform has funded more than 156,000 successful projects and raised almost $4.1 billion.
It supported different projects like movies, physical products, games, etc. This is basically a reward-based platform where backers are offered exclusive incentives in return for their support. The more a backer invests, the better is the reward for them.
Kickstarter has an all-or-nothing strategy that means you are given access to your raised funds only when you achieve your first fundraising goal.
In case of failure, all the money stays with the backers. Therefore, you will find only unique and high-quality projects here.
Another highly reliable crowdfunding platform is Indiegogo. It supports all types of projects just like Kickstarter but is different in certain aspects. Above all is its feature of the flexible funding goal.
It is up to you whether you choose a fixed funding goal or a flexible funding goal. With flexible funding goal, you will continue to get your funding even if you have not achieved your goal within the deadline.
Another unique and beneficial feature is the Indiegogo InDemand that allows you to raise funds even after your campaign has ended when you are getting ready to complete the order or are in the production phase.
This unique platform is especially focused on modern creators like bloggers, musicians, cartoonists, YouTubers, live streamers, etc.
This site is specially designed for Internet personalities to run their campaigns and get support from the loyal audience through paid memberships and generate revenue.
You can choose your customers to pay on per month and get special community perks, or on per project basis so that they could give you more incentives for your creation.
If you are a regular creator and have a considerate number of online fans, then you must not delay creating a Patreon page.
4.Crowdfunder (Shopify app)
The Crowdfunder app helps you to raise revenue in its simplest form, i.e. by taking pre-orders as a method to keep your idea validated side by side and fund the production.
The platform can not only be used to raise fund for new product ideas but also help generate money for a cause, and even helps to launch old limited run-products.
If you already have a Shopify store and are willing to launch a new product, then it will be easier for you through this app.
This crowdfunding platform is completely free but is limited for individual supports and generating money for a cause.
As the platform is used usually for personal causes so the backers tend to choose projects of their interest or within their personal networks or to which they are quite familiar.
Though this platform is not for commercial campaigns if you are a small business owner and are going through hard times, you can start a campaign to get help on a personal basis.
The Fundable is associated with Startups.co and is one of the top sites that has allowed startups to provide equity or reward in exchange for funding.
Startups either offering rewards or equity is highly beneficial for fundraising purpose, as long as you have a solid business plan, a track record of growth and a pitch deck.
It charges a fixed amount of $179 per month in the duration of active campaigns, instead of a specific percentage of the funds.
At this equity crowdfunding platform, to create a public profile and deal room in order to invite investors you need to buy a per month plan, starting from $299 per month.
But to create a non-public profile you don’t need to pay anything. The network has more than 12,000 capitalists and investors with whom you can connect and raise the capital you desire .
Crowdfunding is just the first step towards a whole new process of convincing people and raising money for your project.
It takes a lot of effort, preparation, and luck to achieve your goals. With the options presented here, you a breath away from your funding goal.