Raising funding or capital for a business you're starting can be a major hurdle on the road to bringing your vision to life.
While bank loans and pitching investors are still viable fundraising options, crowdfunding gives you the opportunity to get support from a crowd: a group of individuals who collectively invest in your idea to make it a reality.
Crowdfunding sites have allowed entrepreneurs around the world to fundraise for their businesses and causes, adding $65 billion in revenue to the global economy in 2020, according to Fundly's latest report.
Crowdfunding sites FAQ
What are the advantages of crowdfunding?
Crowdfunding offers a number of benefits to small businesses looking to raise money. It provides access to capital fast, serves as a marketing tool, provides proof of concept, and introduces early adopters to your products.
Do you pay back crowdfunding?
Different types of crowdfunding require different payback methods:
- If you are using donation crowdfunding (i.e., GoFundMe) you don’t have to pay the money back.
- If you are raising money with exchange crowdfunding, where you ask for money and give something in return, you must fulfill your obligation.
- If you raise money through equity crowdfunding, you don’t need to pay any money back, but must share revenue with investors.
Which crowdfunding sites are the best?
- Kickstarter
- Indiegogo
- Patreon
- Crowdfunder
- GoFundMe
- Fundable
- Crowdcube
- Mightycause
- SeedInvest
- StartEngine
What’s the difference between Kickstarter and Indiegogo?
The biggest difference between Kickstarter and Indiegogo is when you get your money. Kickstarter only gives you funds after the campaign reaches its fundraising goal. Indiegogo let’s to receive funds as they get donated, or you can wait to see if you reach your target.
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