Best Crowdfunding Sites For Startup In USA 2021 | Teckarticle

Best Crowdfunding Sites For Startup In USA 2021 | Teckarticle

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Best Crowdfunding Sites For Startup In USA 2021

best crowdfunding sites for startup

Do you have any unique ideas? And desire to make your ideas come true? But not getting investors for your startup. Then crowdfunding can assist to raise funds. In this article, you will learn about best crowdfunding sites for startup

What is crowdfunding for startup?

Firstly, let’s see what crowdfunding for startup is. Crowdfunding is the method of financing a project or venture by raising minute amounts of money from a huge number of resources. Furthermore, crowdfunding is a form of outsourcing and alternative finance. Numerous startups have grown successfully in large businesses after getting crowdfunded. Some inspiring examples of crowdfunding are Everyday Backpack, VAVA 4K Laser Projector, Coolest Cooler, and more.

Types of crowdfunding for startup:

There are different sorts of crowdfunding for startups. Thus, before crowdfunding, it is crucial to understand which type is better for your startup. Because each type of crowdfunding comes with strengths and flaws. Let’s see which type is suitable for your startup.

Reward Based Crowdfunding:

As the name suggests Reward-Based Crowdfunding the sponsors contribute to your project idea for non-financial gains. In other words, an entrepreneur creates a crowdfunding campaign to raise funds for an imaginary product or a product that is just an idea. This type of crowdfunding is suitable for innovative projects. In this model, investors will receive the gift of appreciation. The ongoing sites of this model are Kickstarter, Indiegogo, and some more.

The benefit of Reward-Based crowdfunding is gaining early funds without selling products or part of your startup. Additionally, it makes enthusiastic fans and people who are eager to be initial followers of your startup. The money-raising is part of crowdfunding and however, you have to produce as well as export a product to the audience.

Equity-Based Crowdfunding:

In this type of crowdfunding, entrepreneurs sell a part of the startup to an investor or crowd of investors in exchange for their capital. The sponsors can invest a little amount to acquire a small share in a startup. It is similar to the stock market where people obtain shares of different stocks and retrieve them when the prices rise. Companies such as OurCrowd, Seedrs, AngelList, and more are the leaders in this type of crowdfunding.

Equity-Based crowdfunding has the power to raise larger amounts of money if you compared it to other models of crowdfunding. When you raise a large amount of capital through crowdfunding, the crowdfunding platforms unite not only the investors but also their money in one entity. This means you simply have an individual sponsor to communicate with and one sponsor on your funding table. But it’s difficult to get friction with equity-based crowdfunding platforms.

Donation Based Crowdfunding:

Donation-based crowdfunding is for charities or non-profit campaigns that are working for a social cause. GoFundMe is one of the trusted platforms that grow funds for their problems using donation-based crowdfunding. GoFundMe platform asks donors directly for a contribution to support retain the campaign running. Donors who invest through this site usually don’t demand anything in return. Contributors are simply donating to a purpose or organization that they support.

Debt Crowdfunding for startup:

Debt crowdfunding includes raising capital that you return. In debt-based donations, the money promised by sponsors is a loan and needs to be refunded with interest by a set deadline. Debt crowdfunding is a suitable option for a startup with a unique strategy, requires defined money, and a plan to repay it. This model doesn’t hold the same novelty as equity and reward crowdfunding. Because not every startup is excited to take debt in the early stages. It is probably not a suitable choice for the creator of any buzz-worthy gadget or the CEO of an early-stage venture. Lending Club, Kiva US, Prosper are some good examples of Debt crowdfunding.

Best Crowdfunding Sites For Startup:

The ultimate goal of crowdfunding is to pull a large crowd to raise the funds you require for your venture. Various crowdfunding platforms can help you to get funding for your startup. Before running any crowdfunding campaigns make sure you evaluate the list of crowdfunding sites to get the best platform for your startup.

Here is the list of best crowdfunding sites for startup:

Kickstarter:

Best Crowdfunding Sites For Startup

Kickstarter is an extremely popular, reliable, and oldest website for crowdfunding founded in the year 2009. It helps in financing everything from technology, design, films, games, arts, music, and more. The platform is full of creative, dynamic, and innovative projects which are brought to life by the right support of investors.

iFundWomen:

Best Crowdfunding Sites For Startup

The founder of iFundWomen Karen Cahn designed a crowdfunding ecosystem for women-led start-ups and small enterprises. Initially, every start-up is examined thoroughly and unless they reach the specifications, they cannot participate. But, the plus point is that any variety of start-ups can apply. The platform reinvests a huge amount from the earnings in live campaigns which makes it one of the best crowdfunding platforms for women.

Indiegogo:

Best Crowdfunding Sites For Startup In USA 2021

Indiegogo is a reward-based crowdfunding platform that proposes two types of funding are Fixed funding and Flexible funding. Fixed funding permits you to set an aim for a specific amount of money, moreover, if you don’t achieve your target, all funds are repaid to donors. Flexible funding is when you’re seeking any financial support, which you can retain whether you hit your goal or not. With this platform, you can start raising capital at any particular time. And there are no special fundraising deadlines or targets, which enables you to enjoy all the room you demand.

Patreon:

Best Crowdfunding Sites For Startup In USA 2021

Patreon is a reward-based crowdfunding platform, started by musician Jack Conte and developer Sam Yam in 2013, that delivers business tools for content creators and musicians. It supports creators and artists to make money by giving rewards as well as perks to their sponsors. Patreon is used by web comic artists, YouTube vloggers, musicians, podcasters, writers, adult content creators, and different kinds of creators who post regularly.

WeFunder:

Best Crowdfunding Sites For Startup In USA 2021 | Teckarticle

WeFunder was founded by an MIT Sloan School of Management in the year 2010. This is a crowdfunding service that connects startups with investors online. They help founders in raising capital from their various enthusiastic users. Also, they guide seed investors in buying a stock for as low as $100 in the most assuring innovative companies across the country. Presently, it owns a huge amount of investments, $982,911 revenue, and $302,723 net income as stated on their site.

Fundable:

Best Crowdfunding Sites For Startup In USA 2021 | Teckarticle

This is a rewards-based funding platform established by entrepreneur Wil Schroter. The investors on this site have the opportunity to invest in small organizations for a stake. Fundable provides education and tools to train aspiring founders throughout the whole startup process. Which includes startup planning, customer acquisition, funding, staffing as well as mentorship.

SeedInvest: crowdfunding for startup

Best Crowdfunding Sites For Startup

A group of MBA from Wharton School of the University of Pennsylvania started this platform that focuses mostly on startups. SeedInvest is loaded with investors as well as entrepreneurs that are ambitious about creating future innovation. They collectively bring investors and entrepreneurs through an equity-based crowdfunding platform. SeedInvest will empower organizers using a stage to a multitude of investors to raise funding.

OurCrowd:

How Do I Get Crowdfunding For Startup In USA 2021

OurCrowd is an equity-based crowdfunding company founded in February 2013 in Jerusalem. This company is for certified investors as well as institutions to back early-stage companies, startups, and ventures. OurCrowd permits every investor to pick the individual firms to invest in. OurCrowd is only open to authorized investors, also asks its Israeli portfolio firms to give a part of their investment to charity. As of October 2020, OurCrowd has over $1.5 billion in authorized funding.

Seedrs:

Best Crowdfunding Sites For Startup In USA

Seedrs is an equity-based crowdfunding platform founded by Jeff Lynn and Carlos Silva in 2012 in East London’s Tech City. They approve all kinds of investors to finance in businesses. Seedrs allows all kinds of growth-focused firms to raise money and a community in the process. Their special offer shields and empowers investors while maintaining the business’s growth. Seedrs declared that 250 startups had raised funding through its equity-based crowdfunding site till the year 2020.

AngelList:

Best Crowdfunding Sites For Startup In USA

AngelList is an equity-based platform for startups that was created in 2010 by entrepreneurs Naval Ravikant and Babak Nivi. This platform is on a mission to standardize the investment process as well as to encourage startups with their difficulties in fundraising and talent. Since 2015, the platform enables startups to build capital from angel investors free of cost. AngelList unites talents with startups, which include over 2,000,000 applicants, more than 35,000 hiring organizations, and 5 million enrolled users. 

GoFundMe:

Crowdfunding For Startup In USA 2021

GoFundMe is a donation-based crowdfunding firm, trusted around the globe for its simple, secure fundraising program. This is an excellent choice for charitable organizations as well as companies that have service-based initiatives. Although it is majorly used for charitable initiatives, businesses can get the benefit of the platform too. Their trust and Safety unit runs around the clock to protect against scams.

Lending Club:

crowdfunding For Startup In USA 2021

LendingClub is a debt-based reliable crowdfunding site that offers amounts of $40,000 in personal loans as well as up to $500,000 in small startup financing. They always keep customers at the center of everything they do, enabling millions of people to reach their business goals. You will have oodles of opportunities to develop, contribute, innovate and share your startup. Since 2007, over 3 million members have joined the Lending Club to support achieve their financial goals.

Kiva:

Best Crowdfunding Sites For Startup In USA 2021 | Teckarticle

Kiva is a global nonprofit debt-crowdfunding stage that was founded in 2005 in San Francisco. This stage has a purpose to extend economic access to support underserved communities flourish. Lending on Kiva builds a partnership of joint dignity and makes it simple to reach more lives with the same money. Through the funding of Kiva, farmers can buy equipment, students can pay for education, women can begin firms, and families can afford required emergency concerns.

Prosper:

Best Crowdfunding For Startup In USA 2021

Prosper is a debt-based crowdfunding platform situated in California. It is a site where people not only invest in personal loans but also ask to borrow money. In addition, Prosper is America’s primary and reliable peer-to-peer lending marketplace, including $7 billion in funded loans. Prosper checks borrowers’ background as well as selects individual data before financing loans, also handles all stages of loan servicing. Investors can study borrowers’ ratings, credit scores, histories, and the category of the loan before investing.

Is crowdfunding good for startup?

Crowdfunding for startups is excellent if your startup doesn’t have a path to investors. An entrepreneur can easily start a great campaign on a crowdfunding website and acquire funding from the investors for their new idea or a product. But Crowdfund isn’t there to support your startup for the long period. This implies that you can’t get crowdfunding repeatedly for the same product. Once you own the capital, make sure to achieve your startup goals also deliver everything you have agreed with the sponsors against their money.

Conclusion:
In general, Crowdfunding is a way of raising funds for a startup or small business via reliable online sites or crowdfunding platforms. If you have innovative ideas, creative thinking for a startup but not getting financial support. Then crowdfunding is a golden opportunity for you. There are many trustworthy, secure as well as genuine crowdfunding platforms such as SeedInvest, Indiegogo, Kickstarter, and more. So you can easily raise funds for your new startup.
Crowdfunding has four types that include: Equity, Reward, Debt, and Donation based. Each type has its pros and cons. You can choose any crowdfunding model according to your startup type.
Crowdfunding sites are not only for raising funds but also for investments as well. You can invest a small amount of money in any imaginative and creative projects on a crowdfunding platform. Crowdfunding is not all about the money, sometimes it gives you much more than you expect.


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