How to Find the Perfect Crowdfunding Platform For Your Business?

Hello everyone!

As I've already mentioned, Kickstarter and the crowdfunding model of business have played a massive role in my journey to success. Thanks to the support I received there, I was able to turn my ideas into reality and get MakerBuino out into the world.

At the time, I couldn't have imagined that in a few years, I'd be collaborating with some of the industry's biggest names, such as Geek Club, while still promoting products on Kickstarter. I've shared tips on creating killer campaigns, nailing marketing strategies, and ensuring timely deliveries in the past, but there's one aspect I've overlooked: why Kickstarter is our go-to platform for new projects.

Plus, if you're on the lookout for other crowdfunding options, I've got you covered. We'll explore a few alternatives and weigh the pros and cons of each.

Why crowdfunding?

Let's start by breaking down why crowdfunding is such a game-changer for startups looking to launch their projects and secure funds for production and delivery.

First off, access to capital is a major win. For startups bursting with innovative ideas but light on cash, crowdfunding platforms offer a lifeline. They provide a way to rally support from a wide pool of backers who believe in the project, without the hassle of relying solely on traditional investors or loans.

Then there's the validation factor. Launching a crowdfunding campaign lets startups gauge market interest and validate their ideas in real-time. If the campaign gains traction and attracts backers, it's a solid sign that there's demand for the product or service.

Crowdfunding campaigns are also dynamite marketing tools. They build up excitement, attract attention from potential customers and media outlets, and can even catch the eye of investors.

And let's not forget about the feedback loop. Crowdfunding campaigns provide a goldmine of insights that startups can use to refine and improve their offerings before they hit the market.

Why Kickstarter?

Personally, I’m the biggest fan of Kickstarter. At CircuitMess, we also use Indiegogo for every new campaign, but Kickstarter is our go-to crowdfunding platform.

Let’s talk about it for a moment, and see what are some pros and cons of the site.?

Kickstarter operates on an all-or-nothing basis, which means the pressure's on to hit your funding goal. If you don't make it before the deadline, you're out of luck. But hey, no goal met, no fee owed—that's the silver lining!

The platform's strong brand recognition is major plus. Also, it's a hot spot for folks looking for innovative and creative projects, making it prime real estate for startups looking to make a splash.

Sure, you might worry about hitting that funding target, but here's the real focus: creating something fresh, exciting, and worthy of backers' hard-earned cash. That's what it's all about.

Pros of Kickstarter:

?? Getting funded means getting your money

?? Strong brand name and recognition

?? User-friendly platform

?? Popular with folks on the hunt for innovative ideas

?? Easy to build a community around your project

Cons of Kickstarter:

? No funding if you fall short of your goal

? Competitive environment

? High expectations from backers

? Risk of over-promising and under-delivering

What about Indiegogo?

Now, let's talk about Indiegogo—a platform we've dipped our toes into but haven't gone all-in on.

Indiegogo's "anything goes" approach makes it a bit of a free-for-all. With less oversight than Kickstarter, there's a ton of competition and clutter, making it trickier to stand out in the crowd.

That can lead to longer waits for funding, or worse—struggling to hit your target altogether. But hey, at least you've got options: fixed or flexible funding, take your pick!

And while Indiegogo might lack the star power of Kickstarter, it's available worldwide, offering a broader reach for global campaigns.

Pros of Indiegogo:

?? Offers fixed and flexible funding options

?? Available worldwide

?? Hosts a variety of campaigns

Cons of Indiegogo:

? Lacks the brand recognition of Kickstarter

? Open to anyone and anything (which can be a double-edged sword)

? A bit trickier to secure funding compared to Kickstarter

What are some other options?

Ever heard of GoFundMe? Sure, it's often associated with personal causes and charity drives, but did you know it can also be used for promoting your project or startup? Whether you're crowdfunding the next big thing or just need some cash to kickstart your dream venture, GoFundMe's got your back.

Now, if you're ready to take your startup to the next level, check out SeedInvest. This platform connects startups with investors looking to get in on the ground floor. Just pitch your idea, get the green light, and boom—you're on your way to funding success.?

Bonus: SeedInvest vets investors to ensure you're in good hands.

You can also find crowdfunding platforms tailored to your specific project. From RocketHub for online courses and software to Patreon for artists, there's a platform for everyone.

And if you're all about startups but don't have a specific product in mind, there are equity crowdfunding platforms like Crowdcube, Fundable, and StartEngine. Here, you can raise capital by offering investors a piece of your company. It's a great way to fund your ideas and build a community of potential investors.

How to choose a perfect crowdfunding site for your project?

?? Define your project goals

Start by clearly outlining what you want to achieve with your project. Whether it's raising funds for a creative endeavor, launching a business venture, supporting a charitable cause, or something else, knowing your goals is essential.

?? Research platform options

Explore different crowdfunding platforms like Kickstarter, Indiegogo, GoFundMe, Patreon, and more. Take the time to understand their features, target audiences, fee structures, and success rates to find the best fit for your project.

?? Understand platform fees

Review the fee structures of each platform, including platform fees, payment processing fees, and any additional charges. Compare these costs to determine which platform offers the best value for your project.

? Review success stories

Look for success stories or case studies of projects similar to yours that have been funded on each platform. Pay attention to factors like campaign strategy, promotion efforts, and backer engagement to assess the platform's effectiveness.

?? Read platform policies

Take the time to review the terms of service, guidelines, and policies of each platform to ensure compliance and avoid any potential issues. Be sure to understand the rules regarding project eligibility, fundraising goals, and reward fulfillment.

?? Seek feedback and recommendations

Reach out to other creators who have run crowdfunding campaigns or seek recommendations from your network. Ask for feedback on their experiences with different platforms and gather insights to help you make an informed decision.

One thing is sure — we'll definitely keep exploring both Kickstarter and Indiegogo for our future projects.?

That said, if you still haven't had a chance to check out what our crowdfunding campaigns look like, visit our NASA Perseverance Space Rover campaign on Indiegogo!?

And, of course, keep following my updates here on LinkedIn for more first-hand tips, tricks, and strategies that we're using at CircuitMess to bring our crazy ideas to life successfully.