Crowdfunding and Fundraising: The Better Love Story

Even a little while ago, people used to just assume that you were swearing them in Portuguese whenever they hear the word “Crowdfunding”. Well, if you consider crowdfunding now, the mention of this term alone can create a spark in any discussion.

In this modern era, crowdfunding has indeed shown a common way for businesses to raise capital for launching their product or just for financing their growth. This method of raising fund is just increasing day-by-day. Recently, experts have predicted further growth of over $300 billion in this industry by 2025. So, if you still haven’t adapted to utilize the crowdfunding features, jumping on to this method might seem vaguely nerve-wracking. Hence, we would like to guide you with finding the best platform for starting your own crowdfunding campaign. There are plenty of fishes available in the sea, but choosing the biggest one is important. Here are some of the top crowdfunding platforms that can be utilized most effectively for your consideration.

1. Kickstarter

If crowdfunding is the heart of fundraising, then Kickstarter can be considered as the nerve system of fundraising. Established in the year 2009, this platform’s uniqueness is the rewards for people who are donating. Let’s have a look at which category of people is Kickstarter ideal for and the cost involved in starting a campaign in such platform.

• Kickstarter is a page where the projects are mostly creative in nature. If your project has a high tangible goal instead of just starting a business, then you can go with this platform.
• The risk and cost involved in Kickstarter are pretty high, along with the benefits. Only if you reach 100% fund target, you can collect the money, and that too after deducting Kickstarter’s fee of 5% and payment processor’s fee of 3-5 percent.

2. GoFundMe

This one is another big platform when it comes to crowdfunding. GoFundMe is best suitable for individuals trying to increase funds for a particular reason, be it paying education fees or medical expenses, etc.

• If you are an individual looking for raising funds to take your existing business to the next level or to start a new venture, then you can consider GoFundMe as the best option suitable for you.
• If the campaigns are commenced in U.S dollars, then you don’t have to pay any fee to the platform, and if you are from any other country, then you will be required to pay 5% of the funds raised to the platform. However, the payment processors fee of around 2-5 percent shall be collected, regardless of the country you are from.

3. Indiegogo

Indiegogo is a platform where you can find a solid combination of every other platform on the site. With this platform, you can collect the funds raised even if you are unable to reach the target. However, you will be required to pay a higher fee if you don’t reach the fundraising goal. Any industry can make use of this platform, and the site offers both flexible and fixed funding.

• In fixed funding, you can’t collect the money if it doesn’t reach the target. You will be required to pay a 5% fee from the funds to the platform and 3% fee to the payment processors. However, you don’t have to pay any fee if you are unable to reach the target.
• In flexible funding, you can collect the money even if it hasn’t reached the target. However, you will be required to pay a fee more than 5%, if your funds do not reach the target, along with 3% of payment processors fee. If your product reaches the target, then you just have to pay 5%

4. Patreon

This is the platform that encourages creativity more than any other platform. The tagline of Patreon is “Creators, Come Get Paid”, which indicates the support passed on by the platform in making the creatives pursue their passions, and to make these things enjoyable by others.

• Since this platform supports creators, it is good for pursuing and succeeding creative ventures.
• Initially, the fee charged by the platform for creatives is 5%, and other fees such as payment processing, etc. But, Patreon has changed its way recently to provide its creators with as much fund as possible. In this platform, the donors pay a service fee of 2.9% and $0.35 for covering the payment processing fee of every pledge. With this, the fundraisers can take 95% of the collected fund to home, paying only the platform fee of 5%.

5. GoGetFunding

This is a platform that’s been around since the year 2011 but still is unfamiliar among many. Still, this is another amazing option for fundraisers looking for flexibility in the projects they can raise fund. One amazing feature of this platform is, whether you meet the target or not, you can just keep the money raised.

• This is a platform that can be used by anyone for any cause, be it personal or business-related or for a non-profit.
• A fee of 6.9% is charged in this platform, which may seem higher than other platforms. But the advantage in this platform is, the fee is inclusive of payment processing fee. This makes it more cost-efficient than any other platform.

6. Ulule

Ulule is Europe’s first crowdfunding platform. If you are not aware of Ulule, the reason might be your geographical existence. This also serves as a great option for raising funds for creative projects.

• Ulule’s purpose is to make the platform fit for any kind of project. However, this platform’s audience is more allured towards innovative creativities.
• Ulule is another such platform where you can collect your funds only if you have met your target, otherwise, the funds will be returned to the donors without charging any fee. The fee involved for all projects collecting other country currencies is 6.67% for credit cards, and 4.17% for payments made through PayPal or cheques.

7. CircleUp

This platform’s aim is to assist the growing companies and brands to increase their capital and witness growth. In this platform, companies must first apply and pitch a minimum revenue of $1 million for getting listed on the website. On rare occasions, the platform does make exceptions.

• CircleUp is best suitable for entrepreneurs looking for funding and guidance to grow a somewhat established business to the next level.
• The percentage of fees is determined by the CircleUp only after your project is be listed and the amount that is set to be raised. However, more information on the terms regarding CircleUp is also available in their FAQ page.

The Choice is Yours

Feeling eager to start your own crowdfunding campaign? Well, you are never short of options to kickstart your campaign. The perfect way to get started is by analyzing your own goals and requirements. With the availability of amazing platforms, we wish you happy fundraising.

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