in ,

Top 10 Crowdfunding Sites For Fundraising

Crowdfunding is a terminology used to connote the practice of raising funds for a project or venture through a large number of people typically domiciled on the internet. The method of raising funds is a form of alternative financing and crowdsourcing.

Unless you live in a location that does not have the internet, there is no way you would not have heard of people or organizations that have raised millions of dollars online to fund their school fees, medical bills, and other needs.

There is no telling the number of crowdfunding websites that are currently in use but we can tell you for sure that there are a plethora of them that do not have real communities or even meaningful successes in terms of funding.

And now, you may want to ask about the best and most reliable crowdfunding sites

Given my knowledge of crowdfunding and the fact that I have a working relationship with the owners of some of those sites, I stand a better chance at guiding you than a minnow in the industry.

I am going to talk briefly about the industry as a whole, the types of crowding funding available, and then I’ll go ahead to make recommendations.

The Crowdfunding Industry

Crowdfunding or collaboration on the web has made life a tad easier and this industry has continued to evolve.

Based on a report on the Crowdfunding industry by Massolution, a colossal sum of $2.7 billion was pulled in 2012 from the campaign of over 1 million people. The industry expected growth and made a $5.1 billion projection for 2013.

As this industry continues to thrive and grow, it is widely expected that in the coming years, buying shares in a crowdfunding company, localization, group-based approaches, mobile solutions and etc are going to be made possible.

Crowdfunding Models

There are basically two main models of crowdfunding: Donation-based funding and investment funding.

Donation-based funding is where funders donate or contribute funds through a collaborative goal-based process, and this is done in return for products and rewards. It was the first model ever created. Meanwhile, the second model is the most recent of them known as investment crowdfunding. This is is a crowdfunding model where enterprises seeking capital sell ownership state virtually in the form of debt or equity. In this type, individuals who fund projects become owners or shareholders who get a return.

Crowdfunding Sites To Choose From

There are a chunk of crowdfunding sites that you can choose from but we are interested in listing the most reliable of them. Find the following sites with different models and focuses.

1. Kickstarter

This is a crowdfunding site for creative projects that uses the donation-based model of funding. The projects on here range from products like pre-selling music albums/movies, art installations to even a cool watch. They do not crowdfund businesses, charities, causes or personal financial needs. kickstarter is one of the pioneer platforms and it has grown in leaps and bounds ever since.

2. Indiegogo

Indiegogo is also one of the earliest platforms. The difference between Indiegogo and kickstarter is the fact that the former utilizes donation-based funding for almost everything. Music, personal projects, charities, and whatnots bar investment. They are very well in use because of their robust nature, flexibility and broad approach.

3. Crowdfunder

Crowdfunder raises investments for users. This is one of the fastest-growing platforms that offer equity crowdfunding from individuals, angels, and VCs. They were also a leading participant in the JOBS act legislation.

4. RocketHub

RocketHub uses donation-based funding for a wide range of creative projects.

The uniqueness of this platform stems from their LaunchPad and Fuelpad which aid campaign owners to connect with potential promotion and marketing partners for collaboration.

5. Crowdrise

Crowdrise uses a donation-based model of funding for charity and other causes. They have a community of basically good Samaritans that channel their resources to funding random needs and inspiring causes.

The uniqueness of Crowdrise is that the donations of funders are tracked to reveal the quantity of charity and impact they are making, whether individuals or organizations.

6. Somolend

This is a crowdfunding site for lending for small businesses that are based in the US, they also provide debt-based investment funding to businesses that qualify with existing revenue and operations. They have partnered with the banking industry to provide loans and also help bring in friends and family members into small businesses.

The other good news is the fact that they have been multiplying to other cities in the US.

7. appbackr

For individuals in the tech industry that are looking to build a mobile App, you can turn to appbackr for donation-based funding. Get on their website and their community for mobile app development.

8. AngelList

Mainly for tech startups with the prospect of blooming or for start-ups yearning for Silicon Valley momentum, you can find investments through AngelList. This platform has refused to say they are doing crowdfunding but they have catered for the investment establishment of VCs in tech start-ups. It however appears that they are just getting into the game. Those accredited investors and institutions on AngelList have been funding a chunk of top tech start-ups.

 

9. Invested.in

If you are looking to create your own crowdfunding community with the aim of supporting a donation-based project for a specific market or group of people, Invested.in is where to look at. It is a Venice, CA based coy that is also a white label provider of software. They give you tools to get started and grow by yourself.

 

10. Quirky

Quirky is a platform for inventors where collaborations for donation-based crowdfunding are carried out with a community of like-minded individuals. They mainly help in the process of bringing an invention or a product to life with the participation of a community.

You may be wondering if the aforementioned sites are the only crowdfunding platforms that are available but it’s far from it. Nonetheless, check out the website and decide on a collaborative community to join.

How Crowdfunding Is Shaping A New Economy

While Crowdfunding is a growing market for social enterprises, philanthropism and entrepreneurship have been merged through platforms like these ones. Profits and purpose are been met for individuals and companies.

Crowdfunding has also been used as a tool that has revitalized arts at a time when it is dying off.

It is also accelerating Angel investing and creating a new market for investors.

 

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.