Best Crowdfunding Platforms For Your Startup

It is now easier than ever to find a funding platform to grow your business idea, whether it aims to give personal benefits, a nonprofit cause, or a much-needed tech invention for consumers. Thanks to the digital era that we live in, there are many crowdfunding platforms to assist you in making your dream a reality. There is no need to wait for hours before banks raise the capital you need to fund your business. This article should give you a comprehensive idea of what crowdfunding is, how to approach a crowdfunding platform for your startup, and five of the best crowdfunding platforms to help you get started.

What is Crowdfunding?

Unlike times in the past, it is not required to find one or two large sources of funding to run your business. You can now approach these crowdfunding platforms with numerous investors - small or big, to finance your business. Anyone who believes in the potential of your idea will come forward to fund the venture. You can expand your investor pools not just through crowdfunding platforms but also through social media by connecting with like-minded investors. But at any given time, crowdfunding platforms have exclusive investor communities and can save you time on networking.

Types of crowdfunding

Before diving into the best crowdfunding platforms, it is important to understand the types of crowdfunding and label your business needs. Having clarity on what type of Crowdfunding is apt for your business can help you raise money faster. Here are some types of Crowdfunding for your reference.

• Equity-based Crowdfunding - This type of crowdfunding allows you to market your business idea in return for the funding you need. You may offer the investors shares or a portion of your profit in return for the investment after your business develops.
• Reward-based Crowdfunding - This type of crowdfunding expects a reward in return for their investment. For example, you can offer them a free version of your services or products or even some form of gift according to the amount they are ready to put in.
• Donation-based Crowdfunding - This crowdfunding method is apt for nonprofit organizations and charity-based businesses. You gain a round of funding in return for the campaigns or donation requests you raise for the funding agency or company.?
• Debt-based Crowdfunding - It is just like you receive loans from banks for your business. Investors fund your business by offering you a particular amount for which you will be expected to pay a certain interest or return. The only difference is that the amount of interest is usually lesser in this type of crowdfunding.

5 Best Crowdfunding Platforms For your Startup

Now that you know how crowdfunding works and its types, here are a few crowdfunding platforms that can help you land projects and raise the capital you need to launch your dream business venture.?

SeedInvest Technology

This platform has over 700,000 investors that are willing to back promising business ventures even in their initial stages of growth. They have expert guidance to offer and have assisted more than 250 startups. All you need to do is create an account with the platform, apply and go through a screening. You will be charged a 7.5% fee in case your idea is a success. If the fundraiser does not end positively you will not be charged. The process can be exhaustive but worth a try for all meaningful business attempts.

Kickstarter

This is the most popular crowdfunding platform in recent times. It has benefitted at least 225,000 projects so far. Although creating a profile with the platform is free and simple, you need to achieve the goals you set in the stipulated time to be worthy of any investment. They are keen on backing early-stage startups and collect a 5% fee on successful funding. It supports artists ranging from musicians to filmmakers and creators and it offers easy ways to spot appropriate investors for your pitches.

Patreon

Patreon is an excellent crowdfunding platform for creators, artists, and podcasters on YouTube. It is a subscription-based funding platform that expects you to pay a 5% fee for a Lite plan, 8% for a Pro plan, and 12% for a premium subscription plan. You can choose your plan according to the reach you already have among the public on social media platforms. Patreon has helped at least 250,000 creators across the globe with funding of $3.5 billion so far.?

StartEngine

This platform is a dream for anyone who wants to invest with as little money as $100. Normal people can invest amounts according to their capacities in return for equity in the company they wish to invest in. The company details are listed on the platform for the investor's reference and it has a user-friendly interface that allows you to invest easily. This platform has been in the business only for a short period now but has managed to have a community of 600,000 investors who have raised $450 million dollars on 500 business ideas.

Indiegogo

This platform probably has the strongest network of investors in around 235 countries and has helped at least 800,000 projects so far. It allows you to create promotional campaigns for your business ideas through its association with tech giants like Google and Meta. Such campaigns will be part of your profile for 60 days on the platform. You will be expected to pay a 3% processing fee apart from the platform fee. This has the most success rate in backing entrepreneurs globally.

Summing up

It is recommended to figure out the best crowdfunding site that helps your business thrive. Whatever your business idea, a perfect strategy to attract investors goes a long way in raising capital. If you have a stellar business idea and are looking for some funds, Eqvista can be the perfect place, to begin. We can help you raise the funds that your startup deserves. So, feel free to connect with us right away!