Having to cross a financial hurdle is never easy and it can be difficult to find funds in time to help the people who really need it. There are plenty of ways you can finance your startup, and crowdfunding is just one of them. When it comes to the internet, there are endless ways to raise money. There is no limit to what you can do with the power of the internet and how much money you can raise. However, many people struggle with the idea of asking for a donation, whether it be for their business or personal cause.
The process of crowdfunding includes businesses, organisations or individuals receiving small donations from many people without using traditional means to fund a business. These ventures can get off the ground and launch new projects by receiving the necessary boost in cash flow through such campaigns. Most of these campaigns happen via the internet and have set time frames for when money can be raised with specific monetary goals disclosed before they are reached.
If you want to know more about the intricacies of crowdfunding, click here.
Luckily, there are plenty of resources that allow people to raise money for their causes. One popular resource is GoFundMe, an online fundraising website which allows people around the world to raise money for their personal or group campaigns.
There are plenty of reasons why an entrepreneur looking to raise money for a startup or small business might seek out other crowdfunding sites like GoFundMe.
While GoFundMe has raised over $9 billion in crowdfunded dollars from over 120 million donors, the majority of campaigns on their site are personal fundraisers for need-based causes and typically cover medical expenses. With this focus on human need rather than commerce, there is no fee taken out by GoFundMe except the payment processing fees (currently 2.9% + 30 cents per transaction).
However, just because someone uses a different platform doesn’t mean they’re not able to raise money; it’s always possible with any given way to make people aware about your campaign and why you need funds. Various other sites like GoFundMe can attract the appropriate people to fund your startup or business through each site’s unique features.
Before you go looking for the site perfect for you, you should know some key factors that must play an important part in your decision making process.
Ease of use
Before you start a fundraiser, navigate through the crowdfunding platform site. The best crowdfunding sites make you want to spend time on their pages, learn more, and get involved. They are most interactive and have the best user interface. If a crowdfunding site requires a complex process to begin, choose another one!
Does the website offer email or live chat? Is there an established phone helpline or can prospective donors call into it?
There are social media tools you can use to spread your awareness. The best crowdfunding websites have easy-to-use tools that make it easy to share your fundraiser on social media, such as Facebook, Twitter and email. Since these sites rely heavily on their communities for success, features like these are essential in reaching out to people who might be interested in supporting what you’re doing. As a fresher about fees and models of funding, look at the four key factors below:
1) Platform Fees – 5% – 12%,
2) Punitive Fee Structures (increases if goal is not met),
3) All or Nothing Model (only receive money based on meeting/exceeding goal),
4) Key Features.
You might be wondering which crowdfunding site is best for you. There are hundreds of websites that enable project creators to raise funds but out of so many choices, it can be overwhelming to find the right one. To help save time and effort, we have put together this list of great options!
9 Crowdfunding Sites Like GoFundMe:
The Fundly fundraising platform is versatile and allows fundraisers to raise money for any cause, project, or event without restrictions. This means that organisers don’t have to reach their goal in order for them to receive the donations they raise. Whatever funds they’ve raised so far excluding the fees are only theirs!
The platform provides customizable tools such as beautiful campaign pages with fully customizable add-ons – a place where users can tell their story, post updates and share it across social media.
Some examples of successful campaigns on this site include “Saving Lives 1 Click at a Time” by Dos Velos Images which was able to garner support thanks to its visible share buttons and ability for creators to use videos to explain their work in depth within an easily shareable document.
A standard platform fee of 4.9% is charged in addition to a 2.9% credit card processing fee and $0.30 per transaction on Fundly.
Wefunder is a purely business-oriented crowdfunding platform, which hosts equity (i.e., non-accredited investors) and venture capital campaigns. By hosting these two types of campaigns at the same time, you can bring in up to $5 million each year in investment capital; additionally Wefunder also facilitates accredited investor funding through its platform – this allows for unlimited funds on the network that are often directed towards high potential startups with an appropriate level of profitability already established.
WeFunder’s funding model is all-or-nothing, which means that you only receive funds if your campaign meets or exceeds its goal. They charge a 7.5% platform fee if the campaign succeeds; this seems high when compared to other reward crowdfunding sites like GoFundMe and Kickstarter but it’s still competitively priced with Regulation Crowdfunding fees. Another advantage of using the WeFunder site is that it includes more diverse projects than simply rewards for donations alone.
Crowdfunding has come a long way since its launch in 2009. One very credible site like GoFundMe, Kickstarter is one of the most popular, and successful platforms for raising money for projects with over $6 billion pledged to campaigns (more than any other crowdfunding site besides GoFundMe). The company currently boasts more than 200,000 successfully funded projects with 20 million total backers.
Kickstarter says that while many campaigns raise less than $10k, hundreds of companies have raised more than $1 million on their platform.
Indiegogo is a crowdfunding site like GoFundMe that appeals to entrepreneurs and creators in the same way as Kickstarter. It enables individuals to raise money for any kind of personal project, including films, product improvements and technological inventionsAlthough Indiegogo’s platform allows for an easier campaign, it also has more flexibility than that of Kickstarter or other sites like GoFundMe which encourage entrepreneurialism.
Many successful startups have been able to launch on Indiegogo after being rejected by both platforms because they are flexible in their approach towards fundraising campaigns while still offering rewards if desired. The majority of funding campaigns can go up to 60 days long before reaching their goal or ending with no money raised at all- you decide whether or not your project will continue based on how much funds you get from your backers!
There is also a service called IndieGoggle Demand where projects launched on Indiegogo can keep raising money and stay connected with those who donated after the initial crowdfunding period ends.
It charges a 5% service fee on all funds raised as well as 2.9% + $0.30 per transaction with the credit card processing company it uses (Visa or MasterCard). This model has been successful in raising millions of dollars from around the world with an active community who is eager to get involved in innovative projects before they hit mainstream media attention.
If you are in the business of creation, and sites like GoFundMe do not quite fit what you do, then you can give Patreon a try. Its innovative brand of continuous rewards provides a means of monetizing your work.
With this platform, your campaign doesn’t end until you decide to end it yourself – similar to how subscriptions work on other platforms like Netflix (or in this case Kickstarter). Patrons sign up for recurring payments by pledging every month or per creation.
You provide patrons with exclusive content as payment for their support – so they never want for anything from creations where there is money involved! Interested? Head over here.
FundRazr is not the most high-profile rewards crowdfunding service and its exceptional reputation makes it one that should be considered for any startup in need of financing. Fundrazr doesn’t prescreen campaigns for nonprofits or businesses and does not have a particular bias as to what sort of organisations it favours.
While business campaigns are encouraged to offer perks, this isn’t mandatory on the platform. FundRazr hosts a wide variety of personal and charitable fundraising campaigns while also hosting business projects that meet their guidelines. The projects are not restricted to Canada only.
And here’s the kicker: Fundrazr has no platform fee whatsoever!
The only fees taken out from your donation will be payment processing fees; however, donors are asked to leave tips on this plan option as well – you can choose from plans with 5% or 0% platform fees where funds raised remain 100% yours!.
Unlike most sites like GoFundMe, you can choose between keep-what-you-raise or all-or-nothing funding, and 2.9% + $0.30 per pledge will go to the payment processing service provider which handles your campaign funds in addition to fundraising fees (if applicable). There are other options as well, including choosing not to pass on any of these costs and using different services instead if you’re looking for something else, making this site very flexible.
A lot of sites like GoFundMe are forums for both business and personal campaigns. Fundable is a crowdfunding platform that solely hosts business-based campaigns. The name of the site resembles FundRazr, but it’s different in many ways! It charges monthly fees and has an all-or-nothing funding model for businesses with revenue under $50K or revenue over $50K, depending on their campaign goals. In contrast to other sites like Kickstarter and Indiegogo, which charge platform fees only when there are funds raised by users, this service requires its own fee too: a 3% payment processing fee as well as another 2% +$0.30 per transaction..
The company hosts campaigns for startups and early stage companies more so that small time artists who might want to raise money through these platforms can use it. They would be charged two separate transaction fees. However, tech related companies make up most of the campaigns hosted even on Fundable.
If your campaign is unsuccessful you will not just have none; you’ll have spent nothing at all.
If you’re a startup with high growth potential, then it stands to benefit from the absence of platform fees that many crowdfunding sites impose. After all, if you raise $50K and Fundable only charges a monthly fee of $179 (which is much more than 5%), then this would be beneficial for your business in the future! .
With Kiva, your supporters can lend as little as $25 and the most they wish to support your cause. The platform works successfully when you attract attention to your crowdfunding campaign with marketing outreach methods. Once you’ve gathered enough pledges, then it’s time for them to give back the money – or loan you some of theirs- so that they can help fund their next project! You’ll be able to repay them once funds are available at a 0% interest rate over 36 months. And it’s free!
Kiva is an online marketplace. It allows people who need loans for small businesses or nonprofits in developing countries to get funding from lenders around the world without having anything invested into collateral such as property.
Kiva helps you reach more people and make more money by using a convenient platform that is simple to use. With Kiva, your supporters can lend as little as $25 while also getting an interest-free loan of up to $15,000 over 36 months with 0% interest!
Crowdfunder is a platform for high-impact ventures. Investors are screened and accredited only, so you’ll be drawing from a smaller pool of investors than with WeFunder. Though the monthly fees are higher than the other sites like GoFundMe, it will still be worth it in the end if you raise significant funds on Crowdfunder campaigns because they don’t carry a percentage platform fee or payment processing fees.
There is no mandatory time limit for campaigns but there is a $299 to $999/month subscription fee depending on your package; however, all funds raised remain yours at any time after campaign completion without additional commission costs incurred by Crowdfunder.