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Top 10 Crowdfunding Platforms for Startups

The popularity of crowdfunding is hitting the roof evidently as more and more startups prefer this means of raising funds. Crowdfunding is soon expected to surpass all the traditional means of receiving finances like venture capital, borrowing and bank loans. Though major crowdfunding platforms connect you to many potential investors, not every project is funded as per its demand. To keep no stone unturned, entrepreneurs need to know of all the top platforms he/she can approach. Startup-buzz has enumerated the top 10 crowdfunding platforms for entrepreneurs, ranked by Alexa. So strap up to pitch your project on the following sites:

1. KickStarter:
Kickstarter is undoubtedly the most renowned website for crowdfunding, especially when it comes to startups with unique innovative ideas. After its launch in 2009, it has raised over $2.4 billion funding 105,717 projects successfully. Kickstarter allows only creative projects, while personal fundraiser, awareness campaigns, charity or scholarship is not permitted. The procedure to submit your project is upfront and you just need to sign up an account to fill out your project details.
Fees: Kickstarter charges 5% fee for every successful fundraiser. Amazon Payment also charges 3-5% of your raised project funds as a credit card processing fees.


2. GoFundMe:
Unlike Kickstarter, GoFundMe is not exclusively for creative projects. It is a straightforward site which helps people raise money for whatsoever any cause. You can procure donations from the number of supporters for your personal campaign, businesses, creative projects, travelling etc. GoFundMe is truly all about donations for any possible cause which makes fund seekers happy.

Fees: GoFundMe charges 5% of the total donation one receives. To receive your donations, one can choose Stripe or WePay, which again charges 1.4% to 2.9% as the payment processing fees.


3. Indiegogo:
Founded in 2008 by Danae Ringelmann, Eric Schell and Slava Rubin, Indiegogo’s main aim is to empower creative, entrepreneurial people around the globe. Indiegogo’s layout is analogous to Kickstarter, except that, one can raise funds for any project including donations or scholarships. It has a special funding plan called, ‘Flexible Funding’ that allows one to receive the funds even if the funding goal of the project is not fulfilled.

Fees: Indiegogo charges 5% for each project you raise funds for. The credit card charges 3-5% for payment processing and extra $25 wire free for projects/campaigns outside of US.


4. AngelList:
AngelList was founded by serial entrepreneur Naval Ravikant and Babak Nivi in the year 2010. It is a perfect platform for startup seeking funds from angel investors. AngelList is also an online paradise of candidates seeking jobs in startups. It has invested about $156 million in 387 startups, with a network of 2,898 active investors on the site. It has special provisions for entrepreneurs who want to choose a fully-private invite-only fundraising option. The most amazing thing about AngelList is, that most of the deals wire funds to the startups within 25 days.

Fees: As per the information received from an inquiry, AngelList is free for the startups raising money.


5. CrowdRise:
CrowdRise, founded in 2010 by Edward Norton, Shauna Robertson, Robert Wolfe and Jeffrey Wolfe, is a broader platform of acquiring crowdfunding. It lets you raise funds for any cause that aspire you, which includes setting up your business, charity, education, arts or any other personal cause. CrowdRise has a distinctive feature which lets certain fundraiser to gain ‘CrowdRise Points’, in certain proportion of the number of donation it receives. The startups or fundraisers with high points will be placed in the priority category and assistance to increase its popularity is given by

Fees: CrowdFire charges minimum of 3% charges which includes the credit card fees as well. Plus point for CrowdFire; there are no fundraising goals.


6. Razoo:
Though Razoo gives priority to fundraising for a cause, it is a prominent platform for the entrepreneurs to raise funds. Razoo, which literally means an Australian coin of little value until combined with many, was founded in 2006. It has divided fundraisers into 5 major sets: Individuals, Non-Profit, Foundations, Corporations and Education; segregating the major groups seeking out investors. Razoo has an advanced tools for promoting your projects effectively like Donation Widgets, iPhone app etc.

Fees: Razoo charges 4.9% of the total funds raised in addition to the credit card transaction fees of 2% to 2.9%.


7. Fundrazr:
Fundrazr is a Canadian crowdfunding platform founded in 2008 by Daryl Hatton. Fundrazr started out as a Facebook app for sourcing crowdfunds over Facebook, before it was developed into a website. Till now, over 40,000 individuals and organizations have raised millions of dollars for their project and personal causes through this platform. It enables you to raise money in 10 currencies across 20 different countries worldwide including USA, UK, Canada, Europe and Australia.

Fees: Fundrazr charges around 5% of the total raised funds. You can choose to receive funds from PayPal, WePay, Credit cards or Bank cards. Extra 2.9% is charged as payment processing fees by the above means.


8. Fundly:
Founded in 2009 by James Nicol and Erik Nilsson, Fundly has helped over 50,000 campaigns and organizations to successfully raise funds worth $325 million. Fundly, primarily a crowdfunding platform, also offers guidelines, fundraising ideas, customizable social communications, mobile fundraising options and insights on the project/campaign in order to improve the fundraising experience.

Fees: Fundly charges 4.9% as its fee, on the total amount of funds acquired by you. Credit card processing fee is 2.9% with extra charges of $.30 on every transaction.


9. Crowdfunder:
Crowfunder is the impeccable platform if you are planning to get funds specifically from Angel Investors and Venture Capitalists. It was founded by Chance Barnett, Jean Michel Arnoult, Carlo D’ltri and Rafe Furst in the year 2011. It enables startups from the US to raise funds by selling equity, convertible note, debt and revenue based securities, ensuring your company is in growing phase. Crowd votes for the most likeable projects thus attracting more investors for that particular project. Crowdfunder offers entrepreneurs flexibility in keeping their deal private or public.

Fees: Crowdfunder plays differently than the other crowdfunding platforms when it comes to charging fees. Rather than taking a percentage of funds raised from the fundraiser, it offers a monthly package starting with $299 for using its capital. Keep in mind that it is a free platform when you get started. One has to pay only to make their deal discoverable to the network of potential investors on site.

crowd funder

10. CircleUp:
Founded by Ryan Caldbeck and Rory Eakin, CircleUp has helped around 169 companies to raise over $210 million in growth capital. It offers entrepreneurs exposure to a network of highly accredited investors, who could invest funds ranging from $100,000 to $10 million. This platforms gives access to amazing tools for analytics and provides expert feedback free of cost.

Fees:CircleUp’s fee structure is similar to Crowdfunder. It gives free entry to the entrepreneurs, but charges some percentage of the funds raised by them. The percentage is usually equivalent to the amount companies pay to the investor banker in the offline world.



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Startup-Buzz Team

Startup-Buzz Team

Startup-buzz Team is a collaborative group of entrepreneurs, researchers, writers and experienced professionals. Tied up together to bring the latest Startup Buzz going around the globe.

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