You have a dream project coming up in your mind. Maybe a new social networking site, or a new game – whatever be the dream that you have – realizing it needs a considerable amount of money. How to raise money for the next big thing you have been planning? In fact, raising money was not an easy task back then. You needed to have contacts with high profile people who would lend money in lieu of a share of the profits or otherwise. Convincing them to fund your projects was a huge deal in itself. Not anymore, crowdfunding sites have been the in thing and they help you get public funding through donations from the public. Not only technology-driven projects, but you can use crowdfunding for raising medical bills or help people in tragedy. Let us check out the best crowdfunding sites in this post. Who knows – you can become the next Mark Zuckerberg – thanks to the donations for your huge project that is likely to change the world for better!
Crowdfunding – What Does That Mean?
The name itself should let you know what a crowdfunding site is. It is the kind of funding technique where common people like you and me will donate money for your personal reasons or business projects. People, or the crowd, will fund the projects with their own money. The money so raised is named Donation.
There are several sites that deal with the concept of crowdfunding. Each of the services may have a different approach to how it operates and which kind of projects does it support. But, the underlying methodology remains simple and similar – you post your project or needs on the funding websites and it would go live to the huge audience that the crowdfunding sites have. If the crowd likes your projects or understands your needs, they will donate for the cause of the project.
You can post the need for free. You will be charged only when your project has raised the funds enough to carry out the business, or you have received the amount requested.
Having understood what is crowdfunding and how crowdfunding sites work, let us now check out a few crowdfunding sites that would help you fulfill your big dreams.
Best Crowdfunding sites in 2017 – An Exhaustive List
There are several crowdfunding sites that have been in the business since long and have earned a name for themselves. Crowdfunding can be your best bet to raise money and support for your dream projects. However, it would be important to separate the wheat from the chaff and that is precisely what we are up to. With so many services, it may not be easy to find the best among the host of crowdfunding services available over the Internet. Don’t fret. We are here to help you out.
#1. Kickstarter
Kickstarter is synonymous with crowdfunding. It is one of the most popular online fundraising sites that you can come across.
It has huge followers among the competitors. Thousands of people browse through the catalog on Kickstarter to find the best project that they can fund. However, it does not accept fundraising requests for charities and social causes. Kickstarter is available for all kinds of creative projects though.
Submitting your projects is quite easy. Just create an account and submit your project. Make sure you have included all the details. The team reviews your project in a finer detail before accepting it. The service has been rated as the leader among the project funding websites.
#2. Indiegogo
The service works effectively just like Kickstarter but comes with a flexible funding option. What that means is there is no condition that you should donate the fixed amount. This kind of crowdfunding would be helpful when even a little would be enough for the project.
The major difference between Kickstarter and Indiegogo lies in the fact that you can use it for charity as well. The service uses Paypal as the payment mode and that would make it a feasible option for the people outside of the US as well. The charges are minimal, however, if you opt for the flexible funding – Indiegogo charges you a slightly higher fee.
Indiegogo has tie-ups with companies like Amazon and Brookestone so that once you manufacture the product, you would be able to bring it to the market with ease.
#3. Crowdfunder
If you are looking for the Angel Investor to fund your project, Crowdfunder can be a good option to attract the attention of capital ventures to fund you. Crowdfunder helps you kickstart your projects by selling equity.
It is a worthy addition to your list of crowdfunding sites. If you are comfortable with equity based crowdfunding, you can indeed make use of the crowdfunding service to raise funds by selling equity, debt and revenue-based securities. We must add that the concept of crowdfunding has been taken to the next level with the concept of Angel Investors and capital ventures.
Please note that this concept of crowdfunding may not be suitable if you are not comfortable with the idea of stocks and equities. It would be dependent upon the market fluctuations and as such, we would not advise you opt for it if you are with a lighter pocket.
#4. Crowdrise
If you are someone cares about the issues in the real world around you, we would suggest Crowdrise. Animal welfare, culture, epidemics, natural calamities – if you want to raise funds to handle these situations, it gives you the best platform for the purpose.
Crowdrise is a great means of achieving charity crowdfunding. You can even use the platform for your personal requirements. Some of the situations that can be handled with Crowdrise include birthdays, weddings, or even college projects. However, there is a clear demarcation between the fundraiser and nonprofit categories.
But, the service has some issues with respect to charges. There is no clear mention of the fees structure. The extra charges are a little ambiguous. Check it out clearly before submitting your fundraising requests.
#5. YouCaring
YouCaring has more inclination towards care than funding creative ideas and projects. The service has several categories you can use to suit your exact needs.
YouCaring covers a wide range of categories like disaster management, calamities, education and medical expenditure among others. What makes it a little different from the rest of them is the live chat support. YouCaring also offers you a daily access to your funds. It is the best among the services available for personal and charitable causes. In fact, it belongs to the rare class of crowdfunding sites as does not charge you anything.
Your search for the crowdfunding sites for nonprofits can yield the best results once you begin using YouCaring. Of course, a nominal payment processing fee will apply though.
#6. Appbackr
This is a unique concept in crowdfunding to be precise. If you have developed an app and want to fund it? AppBackr is the best option you can go for.
People will back your app ( they are called Backers) and they will get the money back by backing your app! Sounds interesting? That is how it works. The process is both unique and a little complicated. Explained in simple words, it would mean if you have bought an app at the lower price during its development stage, and eventually, the app goes on sale at a higher price – Appbackr will pay you back at the sales price of the app. It is indeed a Win Win situation for both developer and the subscriber.
The charges would depend upon the price of your app, and several other factors as well. Though it may appear to be complicated enough to understand, once you begin using it – you will find it to be the best option for funding your app development in the future.
#7. Experiment
If you are in awe of science and work on research? Experiment is the great option for you. You can easily arrange funds for your science research.
Just like Kickstarter, Experiment uses the all or nothing model for funding. You set a funding goal for the project. If the deal does not get the prescribed amount of funding, you will not be charged. Yet another feature that would make sure that the project is reliable enough, is the elaborate review process that the project needs to go through before being placed on the site for public funding. The review team ensures that the science is sound enough and the project is viable.
The concept is a little off track. It may not be for every one of us. Only a privileged few will be able to use the service as it would need specialization in the field of science and experimentation.
#8. Piggybackr
The name Piggy in the application in itself should indicate that target audience for this crowdfunding service. It allows the kids under the age of 13.
It can be the best way to enforce the value of hard work in the kids. The kids are assigned points for the efforts that they are put into. This acts as a motivational force for their growth. Though it may not be the best contender for the slot among the top crowdfunding platforms, we have included it in our top picks list just because of the purpose that it intends to achieve.
They charge a nominal 5 percent for each donation and 2.9 percent payment processing fee. It can be one of the good crowdfunding sites for the education category.
#9. PledgeMusic
If you think you are good at music and want to showcase your talent for the whole world to see, PledgeMusic can be your best bet. It would help newer talent into the music industry.
Building a career in music may not be easy if you are light on the pocket. It needs a lot of expenses for training, equipment and yes, not to forget publicity. Unlike the other competitor’s sites that tend to be serious in nature, PledgeMusic aims at being intuitive and motivational. The crowd who back you will get rewarded depending upon the value of their pledge. It can also go a long way in promoting the genuine digital music.
The charges are a little on the higher side. PledgeMusic charges you 15 percent of the fund you raised. Maybe you need to check the quality of your music and worthiness of the fees before you opt for the service.
#10. GoFundMe
Raising money for your personal issues, or even for cause is what you are looking for? Well, in that case, GoFundMe is the best source for you.
The concept is completely about donation and you can place any kind of request. So much so that the request for the donation for your personal vacation! Isn’t that something that you would not be able to find in any other crowdfunding site? The GoFundMe is entirely different from the rest of the crowdfunding services that we featured in this top picks. It comes with a dashboard and an excellent social media integration. It also offers you multiple donation pages so that you can spread the information about your donation request across the internet.
Charges would be 5 percent of the total donation you receive. Payments will be processed through Paypal or WePay and will attract a payment processing fee of 205 to 3.25 percent.
Crowdfunding and You….
That is all about the top crowdfunding sites that we have for the time being. Not that the list is complete in all respects. However, we have made an attempt at including the cream of the best crowdfunding sites in this compilation. However, choosing the perfect crowdfunding site will depend upon the requirements you may have. Check out the fees and other perks that you will fork out for the backers.
And yes, do not expect crowdfunding service to do everything for you. Run a marketing campaign yourself to guide the prospective investors to your projects. Facebook can be a great option in that direction. If you can strike a perfect balance between all the aspects of the crowdfunding, it may not be too long to see your dream projects come into reality.