Crowdfunding serves as an excellent avenue for investors and entrepreneurs seeking capital. Accessing funds, a crucial element for launching and growing businesses, can be challenging, particularly for startups facing tight credit markets. Crowdfunding offers a solution by allowing individuals and businesses to secure capital from a vast number of smaller investors rather than relying solely on a few large institutional investors.
Here are eight noteworthy crowdfunding platforms with key points to consider:
GoFundMe
Founded in 2010, GoFundMe stands as the largest crowdfunding platform globally. Boasting over 100 million users, the company’s campaigns have collectively raised over $25 billion. With an impressive track record of more than 200 million donations, GoFundMe claims an average of one donation per second. Specializing in individual fundraising, the platform caters to various causes, including those seeking funds for medical expenses or recovering from emergencies like house fires. Launching a fundraiser on GoFundMe incurs no fee, but the platform charges a 2.9% fee plus 30 cents for each donation made.
Kickstarter
Established in 2009, Kickstarter is a crowdfunding platform that specializes in funding projects and startup companies. With a community surpassing 22 million investors and donors, Kickstarter has collectively pledged over $7.6 billion, successfully funding more than 248,000 projects. Among these successes, around 32,000 projects secured less than $1,000, while 780 raised over $1 million. Kickstarter projects boast a commendable 41% success rate, and the platform currently hosts over 3,200 live projects. For successful projects, Kickstarter charges a 5% fee, and there are no fees for projects that fail to reach their funding goals. Additionally, the platform’s payment processor, Stripe, collects a 3% to 5% fee for successful projects.
Indiegogo
Indiegogo users have actively contributed to funding over 800,000 projects since 2008. Boasting a user base exceeding 9 million, the platform witnesses the launch of approximately 19,000 new campaigns each month. While renowned as the primary crowdfunding platform for tech products, Indiegogo also embraces art projects, environmental innovations, and social impact campaigns. Offering fundraisers access to expert support and exclusive partnerships, Indiegogo ensures that once a project achieves its goal, funds are disbursed within 15 days of the campaign’s conclusion. The platform imposes a 5% platform fee on all funds raised, with an additional fee of 3% plus 20 cents for payment processing.
StartEngine
Established in 2015, StartEngine stands as one of the largest equity crowdfunding platforms, led by Howard Marks, co-founder of Activision, with celebrity entrepreneur Kevin O’Leary serving as its strategic advisor and spokesperson. Users on StartEngine have successfully raised over $700 million from a vast community exceeding 1 million users. The company’s acquisition of SeedInvest in May 2023 has further expanded its reach, creating an extensive community for startups seeking capital and investors eyeing significant returns. Non-accredited StartEngine investors can invest a maximum of 10% of their annual income or 10% of their net worth per year, whichever is greater.
Patreon
Introduced in 2013, Patreon is a well-known crowdfunding platform tailored for artists and various online content creators, including journalists, musicians, podcasters, and writers. With over 8 million monthly active members and a community of more than 250,000 creators, Patreon boasts a collective earnings record of $3.5 billion. Creators have the option to launch a Patreon page for free, although the company charges a fee ranging from 8% to 12% on the income earned through monthly or annual subscriptions. Unlike platforms focused on funding single projects or causes, Patreon is uniquely designed to empower content creators to monetize their devoted audiences through a recurring revenue model.
Classy
Classy, an autonomous subsidiary of GoFundMe, operates as a crowdfunding platform specifically tailored for nonprofit fundraising. With a substantial number of nonprofit partners, the company has successfully raised over $6 billion for various social causes. In a commitment to supporting the nonprofit sector, Classy allocates 1% of its top-line revenue back into the community. Offering a distinctive set of tools for fundraisers, including sponsor matching to encourage donors to match others’ contributions, Classy customizes its packages based on customer requirements. The pricing structure combines an annual upfront subscription with a transaction fee for each donation.
CrowdStreet
Based in Texas, CrowdStreet, established in 2013, specializes in real estate crowdfunding. Purchasing entire properties can pose challenges for individual investors due to costs, complexity, and risks. However, with crowdfunding, investors can make smaller investments across numerous large real estate projects. CrowdStreet has successfully funded over 798 real estate deals, amounting to a combined value of $4.2 billion. Investors have realized returns, cashing out of 168 deals and achieving a 17.9% internal rate of return. Regrettably, the platform caters exclusively to accredited investors meeting specific wealth and investing experience criteria, with most deals requiring a minimum investment of $25,000.
FundMeSmart™
Although FundMeSmart™ may fall into the Crowdfunding category, this company is unique in the who and how it raises funds. Individuals, Schools, Athletic, Charitable, and Community Organizations can all use FundMeSmart™ to raise funds and brand awareness on Google and Apple Platforms.
FundMeSmart™ describes itself as The ‘Future of Fundraising’ because it is the first mover in “Off the Top and Ongoing revenue streams while defraying the cost to the donors significantly and deliberately. In fact, an active donor on FundMeSmart™ can give $40 and save $1600 per year on dining, travel, lodging, entertainment, groceries, and so much more.
Fundraising with FundMeSmart.com Attracts, Activates, Engages, and Procures donors for life! No other fundraising platform offers this revolutionary compliance tool. It’s Patent Pending income streams that raise funds 24/7/365 with features like Off The Top (50% direct contribution), Pay it Forward (100% direct contribution), Kick it Back (encouraging post-coupon launch donations, with 100% going to fundraiser), Renewal (FundMeSmart renews for the fundraiser monthly or yearly) and Sponsorship (low-cost advertising for local businesses), it stands out as the go-to fundraiser for every organization or parent.
Supporters enjoy yearly savings exceeding $1600, with each app sale fundraiser averaging $114.00. Whether you are raising funds individually or for your school, athletic, or charitable organization, starting a campaign and raising funds becomes seamless with FundMeSmart.
The mobile app and platform offer best-in-class discounts on travel, dining, shopping, and entertainment, making the fundraiser more appealing to donors from all financial backgrounds.
FundMeSmart’s proprietary dashboards segregate all accounts and track every donation. With branded dashboards, specific notification tools, and incentivized campaigns, supporters quickly recoup their purchase price, enjoying thousands in savings. It is a win-win-win for organizations, participants, supporters, and individuals. Your group receives needed funds, local businesses grow, and supporters save. Join FundMeSmart.com for an easy, rewarding fundraising experience.
FundMeSmart takes the financial responsibility and inventory out of the hands of the students, players, parents, coaches, teachers, and administrators.
FundMeSmart is building tomorrow’s fundraising future today!
