Crowdfunding is basically defined as the process of raising small amounts of money from a large number of people typically by means of the internet. Sometimes here the investors are usually friends, families, customers and individual investors. Through this funding process, anyone can invest as little as much and really can expect a high return if the startup succeeds.
Crowdfunding may be in the categories like equity crowdfunding, reward-based crowdfunding, donation-based crowdfunding, crowdfunding based on revenue and profit-sharing, donation-based crowdfunding and debt-securities based crowdfunding.
When it comes to the overall efficiency crowdfunding is much better than traditional fundraising. Through the crowdfunding process, one can very easily have access to social proof, validation and transaction building. The best part of crowdfunding is reduced marketing expenditure and increased media exposure. The following are some of the best crowdfunding platforms over the internet right now:
1 Kickstarter: This is one of the best crowdfunding platforms in the world as a result of which it is highly competitive. Before pitching for the funding proposal one needs to make a prototype of his project and share it with others. If your project comes under categories of arts, technology and film making, then the chances of accepting the proposal are quite high. One more thing you need to remember that the project needs to be creative and problem-solving.
2 Indiegogo: This website was started in the year 2008 to raise funds. This is one of the early fundraising platforms to help the early-stage founders who want to raise capital for their projects. The platform usually works on the principle of a reward-based system which means the customers, investors, and donors who are interested in funding a project can get a reward back in the form of a gift or as the product of the company. Apart from the regular crowdfunding, this platform can be used to raise funds for charity also.
3 Causes: The platform was raised in the year 2007 with the aim of providing social advocacy. In the beginning days, the platform was used for fundraising, awareness building and for education purposes. This platform focuses more on creating campaigns and for building online communities for supporters. The best part of the platform is that one can very easily publicize their activity to their personal network and thereby can increase social engagement.
4 Patreon: This is a membership-based platform which is extremely useful for content creators to create quality content and to build a quality audience. The platform is extremely useful for crowdfunding for some of the creative projects related to art, music, film making, photography, and podcasts. Here the campaigns involved are rewards, subscription and donation based.
5 Republic: This is a new crowdfunding platform that mainly focuses on equity. According to the sources, republic has a success rate of more than 95% for its campaigners. One of the most important things that you must keep in mind is that the republic focuses on the diversity of the teams of a company.
6 iFundWomen: This is a platform that exclusively focuses on fundraising for women-led startups and small businesses. Apart from the regular crowdfunding, it helps the women entrepreneurs to nurture and grow their business. The best part of the platform is that it allows its campaigners to keep 95% of the fund they have raised and 5% as the funding fees. One more thing that you must keep in mind that this is a reward-based platform.
7 CircleUp: This is one of the best equity funding platforms suitable for producing consumer brands. This platform involves the use of machine learning technology and provides access to special lines of credit for startups. The platform has partnerships with industry leaders who aim to help the budding entrepreneurs grow. CircleUp has good tie-ups with industry experts and seasoned entrepreneurs.
Naveen is a creative and excellent content geek who wants to create excellent original content for his fellow audience.
Naveen has completed his bachelor’s in electrical and electronics engineering and owns a site called www.bluechipdigitalmarketing.tk where he usually writes about digital marketing content.