Ever considered embarking on a personal project or launching a startup? If you are clueless about where to get your funding from; rather than searching for traditional investors, why not try out online crowdfunding websites? Done entirely online, these sites provide a platform for other people to find out about your project and even fund it.
The idea behind online crowdfunding sites is that instead of getting a single investor to invest a large sum of money, it works by reaching out to millions of people by asking them to each contribute a small sum of money to support your project. While raising funds, you can also share more about the story behind your project and in turn, they can spread more awareness to generate more hype. Now, are you curious about what kind of crowdfunding sites there are? Here as 5 of the most well known websites that you can check out!
Undeniably the most well-known crowdfunding site with the largest community, Kickstarter is a platform mainly focused on business or commercial related projects. Although they have various categories for a wide array of projects, most of their projects comprises only of startups. Kickstarter also allows donors to pledge funds for certain exclusive rewards such as early access once the project successfully launches, discounts or to have their name be included in the credits after the product has launched. This gives an added incentive to donors and would also encourage them to spread the word about the project. Another distinctive feature is that Kickstarter goes for the ‘all or nothing’ approach whereby only projects who hit or surpass their initial set monetary goal before their deadline will receive the money pledged towards them while those who do not hit their goal, will not receive the pledged amount.
Next up is Indiegogo, a crowdfunding website that is usually described as a launch pad to fund creative and entrepreneurial works. While also considered a rewards based crowdfunding site where incentives are offered to donors, the biggest difference between Kickstarter and Indiegogo is that despite your project not meeting your set goal, you will still receive the funding that has already been pledged to you, allowing you to receive the funds you need once you have hit the deadline for the project. However, if you are looking to raise funds for projects not business related, Indiegogo has also taken the initiative to meet your needs with another website called ‘Generosity by Indiegogo’ specifically to raise funds for non-profit, non-commercial and social causes.
Many people know GoFundMe as a website which has projects that primarily supports people who are going through a hard time or do not have the necessary funds to fulfill their dreams or goals. The website includes various categories such as ‘Emergencies’, ‘Education’, ‘Business’, ‘Community’ and even an ‘Others’ category for those who have projects who are a little ‘Out of the Box’. As most projects on GoFundMe are for a specific cause and most likely to appeal to a donor’s emotion, rather than their practicality, utilizing the project’s page as a way to share and spread awareness about the project plays a big role in generating potential donors. They even have a section for major event fundraising where users can choose do to funding without a deadline or the ‘all or nothing’ strategy.
Next on our list, is Crowdrise a crowdfunding website that is vastly similar to GoFundMe in regards to the types of projects that they support but with an added creative twist. With a slogan that states ‘If you don’t give back, no one will like you’, it fully embodies their creative spirit. Crowdrise is not only dedicated to funding charitable and personal projects they are also the popular choice to raise funds for specific events like birthdays and weddings. An interesting feature they have are Crowdrise Impact Points, where once a pledge is made for a certain project, the donor will accumulate 10 points for every dollar pledged which eventually can be redeemed for Crowdrise merchandise.
Lastly, introducing ‘Rockethub’, a diverse crowdfunding platform supporting almost all kinds of projects you can think about. On this site, almost anything that is legal goes, however they have an added perk called ‘Success School’. At the heart of this crowdfunding platform is a school which teaches you all you need to know about crowdfunding with step by step instructions and the basics on how to go about doing it. This is extremely useful for beginners who are raising funds for the first time as they are coached through on how to launch a proper startup campaign. Like other regular crowdfunding websites, RocketHub also allows you to keep the amount of funds that have been pledged regardless of whether you have hit your desired goal.
With the connectivity of the internet, crowdfunding websites are introducing a new way into how businesses and personal projects can get the attention and funding they need. With different crowdfunding sites out there equipped with their own unique strategy, it is essential to note the various percentage of processing fees that each site charges as well as to weigh out their pros and cons before choosing a one most suitable for your project. That being said, online crowdfunding sites is an exciting platform which provides you with the tools and audience you need to get your voice or to put your project out there!