Crowdfunding is a way to attract funds from a wide audience for some purpose. Someone starts a crowdfunding campaign to fulfill a dream, while others raise funds to pay for studying at an expensive university or moving to another country. It is also quite common when a person or a team has an idea to create a product that needs a large amount of money, which they simply don’t have.
Users can donate money, from a few dollars to thousands of USD, in order to contribute to the cause. This is usually organized through various internet platforms, such as specially created crowdfunding sites.
Crowdfunding Sites
Let’s take a look at the most well-known crowdfunding websites nowadays:
- Kickstarter – A very well-known platform for creative ideas to share with others: pieces of art, crafts, comics, music, film, photography, technology, and much more! You need to present a plan of action and describe the final result, present a prototype if you are creating a product. It is prohibited to raise funds for charitable purposes or to seek investment by offering a share in the product. You pay Kickstarter 5% of total funds raised in case of a successful campaign. In case the campaign doesn’t reach the goal, you get nothing. Also, there are transaction fees.
- Indiegogo – Very popular among tech entrepreneurs to obtain starter capital. Campaigns aimed at satisfying personal needs are prohibited. Аs in Кickstarter, you can’t offer a part of the profit and a share here either. In return, you can offer perks such as themed t-shirts, mugs, a movie ticket on the company-s account, or a product prototype. In general, the platform fee here is 5% (plus transaction/transfer fees). However, Indiegogo provides two options in terms of achieving the result: fixed funding (you don’t get the raised money if you don’t reach your goal), flexible funding (you get the raised money even if it-s less than the target amount).
- GoFundMe – The popular crowdfunding platform to raise money for personal, friends, family, or complete stranger needs: medical expenses, education fees, funerals. Memorials, etc. Nothing is for sale here – the site works on a charitable basis. The platform itself is mostly free (check here for country-specific conditions), but there are also transaction fees here.
- Patreon – A platform for creators of digital content (musicians, bloggers, podcasters, writers, and journalists). Тhe artist gathers a network of patrons who pay for each post or purchase a subscription. The platform fee is 5-12% of monthly income plus processing fees.
- Causes – The best one for nonprofits focused on social, cultural, political issues. Here you can create a page on a topic of interest to you, post content, and gather a community of like-minded people.
How to Get Funding Fast?
We talked about several crowdfunding platforms where you will have to spend time and effort to get funding – they are not designed for quick results. If you need a faster funding option, you can use the services of Payday Depot.