You started a business and now need funds to get your business off the ground and turn your idea into reality. Despite pitching your idea to many investors, you have not got the green signal from investors. If all this seems familiar, then you are not alone. Most entrepreneurs have a hard time acquiring funds for their startup.
Thankfully, things have changed for the better. Today, you can hop on to one of the popular crowdfunding platform, share best crowdfunding ideas with investors and if they consider it interesting, you can easily finance your business. With so many of them around, how can you choose the right crowdfunding platform? If this question is bothering you, then you are in
In this article, you will learn about the top ten crowdfunding platforms to get crowdfunding for business.
What is the first name that comes to your mind when you hear the word “crowdfunding”? Kickstarter, right. It is one of the most popular crowdfunding platforms in the world. Since its launch back in 2009, Kickstarter has raised more than $4 billion for 155,000 projects. Targeted towards creative projects, Kickstarter allows you to set your goals and a deadline before you can launch your campaign. Businesses will only get funded once they achieve their goals.
Mainly focused ontechnology, innovation, creative and community projects;Indiegogo offersits users both fixed and flexible funding options. Choose the fixed option, if you know how much money you exactly need for your business. If your funding requirement changes over time, it is better to opt for flexible funding option. Unlike Kickstarter, you can get funded even if you achieve a percentage of your goal because it did not follow the all or nothing fundraising model.
Whether you are a blogger or graphic designer or app developer or web designer in London, Patreon has you covered. It follows a subscription-based model in which patrons contribute a fixed amount of money every month or per creation. With more than two million active patrons and 100,000 active creators, it is the fifth-largest crowdfunding platform in the world. It is one of the best choices for creative projects.
4. Lending Club
Lending Club caters to the needs of both individuals and businesses. Individuals can get a loan of $40,000, while businesses can get up to $300,000 in terms of loans. What makes this crowdfunding site stand out is the straightforward process it follows.
You can easily qualify for loans but can also get them faster as compared to other sources, making it the best crowdfunding for startup option. Unfortunately, the interest rate can be on the higher side, especially if your credit score is not good. To get a loan from the Lending Club, your business should be more than one year old and have $50,000 in annual sales.
Famous for its efforts to raise funds for charitable causes such as Las Vegas Victim Fund and Time’s Up Legal Defense;GoFundMe also lets businesses acquire funds through its platform. Users located in the United States can waive off their personal campaign fee. One of the biggest downsides of choosing this crowdfunding platform over others is its low fund acquisition rate. Only one in ten campaigns get fully funded. If you are choosing this platform over others, you should be aware of that.
6. Funding Circle
With its value surpassing $1bn mark, Funding Circle is a popular peer to peer lending network. Formed during the days of recession in 2010, it tried to fill in the gaps in the financial markets by creating a debt crowdfunding, which could help the small businesses to continue their business despite the financial crunch.
On average, you can get a loan of £60,000 from this platform, but businesses can borrow up to £1 million in secured loans, £500,000 in unsecured loans while £35 million is lent to small businesses every month. £550 million has been lent to UK businesses only.
7. Angel List
Exclusively for startups and angel investors, Angel List allows you to acquire capital in return of ownership equity or convertible debt. It’s a novel concept that has been praised by both investors and fund seekers.Big companies such as Uber has also raised funds through this platform. Angel List is making waves in both equity and debt financing markets.
For those who are interested in launching their own brand, CircleUp is for you. The platform helped 200 startups raise more than $260 million. What differentiates CircleUp from other crowdfunding platforms is its huge network of entrepreneurs, experts, retailers
If you are one of those who have tried your luck on crowdfunding platforms but want to rope in an angelinvestor or venture capitalist then, Crowdfunder is for you.Youcan set equity and debt in your business to attract angel investors and venture capitalists, just like a traditional venture capitalist program. The biggest advantage of choosing this platform is that you can raise much more money than you need through Crowdfunder.
Last but certainly not least is Ulule, a global crowdfunding platform that is making an impact. Ulule release funds for creative projects and has already helped more than 16,000 artists located in 198 countries in the world. Don’t let its global presence fool you, as it is headquartered in Paris. If you are one of the creatives located in a remote region of the world and looking for startup funding, then you should surely check out Ulule. You can put your ideas in front of global investors and connect with other artists on the platform as well.
Which crowdfunding platform do you use to get your startup funded? Let us know in the comments section below.