Crowdfunding websites – comparison

Crowdfunding platforms used to gather artists of many types, who searched for funds in order to finance their projects. How is it now? At present, this way of gaining money for your business is becoming more and more popular and many entrepreneurs decide to enter the game. Some of the websites are focused mainly on start-ups, which brought a great chance for the entrepreneurs in their prime. Nonetheless, there is more to it than collecting money. Creating a good campaign is simultaneously, a great source of marketing success. Good initial performance becomes an opportunity to show one’s reliability and gain interest of some professional investors.

Surprisingly or not, crowdfunding is not so easy. You need a strategy and be convincing if you want to interest hundreds of strangers. The main purpose of crowdfunding is to make funding process online. That is why, you must heavily work via the internet. Especially, Twitter, Facebook and other highly popular social websites should become of great interest to you.

In this article, we provide a short characteristics of four most popular platforms which vary in terms of crowdfunding approaches. Before you enter the game, learn the rules and find the best option for you.

Kickstarter

This site was created in 2009. Since then, it has generated at least 13,000 successful campaigns. Starting with the artists, now it is gradually becoming a source for innovative entrepreneurs with new products. It is very picky so it is not easy to get accepted. The website centers mainly on artists and creative designers.

Here, you get a fundraising page which includes a funding goal, a video presenting your idea and the deadline (1-60 days after launching a product). Your contributors are supposed to receive a “reward” (for example a prototype) for their investment. If you fail to meet the goal before the deadline you earn nothing. If you are successful you pay 5% of your raised funds and 3-5% to Amazon Payments.

Indiegogo

The platform working since 2008, the one with an open approach. As long as your project is legal, it is accepted.

Here, your project gets a profile page for which you provide a video, write a summary and a description – incentive for investors. You also set a goal and a deadline – 1-120 days after launching. However, unlike on Kickstarter, you keep money even if the goal is not met – then it costs you 9%. If you are successful you pay less – 4% of the raised funds.

Profounder

A site which helps you build your capital on all stages of your business. It provides many useful tools for entrepreneurs, which help manage the company. It is free and intended mainly for entrepreneurs with already developed investors network. Investors, and in the case of this website these are only people whom the entrepreneur already knows, receive equity shares in return for their contribution.

Microventures

Visit this website if you need experienced angel investors for your technology-connected startup. In return for your equity shares, you may receive from $100,000 to $500,000. Unfortunately, if you do not meet the goal the funds are returned to the investors. Generally, this website specializes in technology startups, but it accepts other projects, too. In order to have your project submitted you pay $100 and then $250 for due diligence. 5-10% is taken from the final successful raise.