Top Crowdfunding Platforms

The crowdfunding revolution has changed the modern business model, and knowing the Top Crowdfunding Platforms 2014 is your “Open sesame!” to determine which site is the right one for your project. Crowdfunding has been turning everyday men and women into entrepreneurs while proving that you don’t need a business degree from Harvard to blaze a path in the commercial world. But you do need to know the crowdfunding geography: SMT Agency creator Eyal Bujvaj estimates that there are nearly 1000 crowdfunding platforms available. So how are you supposed to know which one is right for you?

Several of the top crowdfunding platforms, like Kickstarter, Indiegogo, and RocketHub, are reward-based sites. Backers on these sites don’t have ownership of the project. In order to attract donors, you will want to offer perks on different tiers according to the level of money that’s pledged. These sites, which feature campaigns for everything from movies to design to technology to you-name-it, are obviously among the top crowdfunding sites 2014 because of the wide range of projects that they fund. Even celebrities have found a home on these best crowdfunding platforms.

RocketHub may not have the same name recognition as Kickstarter or Indiegogo, but what it lacks in brand it makes up for in customer service. If you’re new to crowdfunding, you can count on RocketHub to maintain a solid connection with the campaign. Size does matter, and small is good. That’s not to say that the superstars of crowdfunding aren’t helpful; according to SMT Agency, Indiegogo rates well for customer service and attentiveness. However, Kickstarter doesn’t always provide the depth of explanation that project organizers need.

If you’re still in the early stage of your campaign, waiting for the light bulbs to go off in your head, you’re probably not ready yet for crowdfunding giants Kickstarter or Indiegogo. You can put the flesh and muscle on the bones of your plan with some help from Quirky, which hosts physical projects. SMT-Agency will provide you with the means of obtaining feedback for your idea while it’s still in the drawing board stage.

If your goal is to get funded in order to raise money for medical expenses, misfortune, hardship, and personal causes, your top crowdfunding platforms include GoFundMe, GiveForwad, and YouCaring. Are you trying to raise money for your favorite nonprofit organization? You should try Razoo, Causes, and CrowdRise to get funding for your project. If you’re looking for top crowdfunding websites that are both rewards-based and focused on personal causes, you might want to give FundAnything and Fundrazr a try.

Niche crowdfunding websites are aimed at specific themes rather than a smorgasbord of projects. If you want to get funding to give your musical aspirations a boost, try PledgeMusic. Have a healthcare project that needs an infusion of cash to get going? Check Medstartr. Customized crowdfunding may be what you’re looking for, but you won’t know until you check the sites.

Equity crowdfunding websites are a popular member of the top crowdfunding websites 2014 because they represent an opportunity for backers to receive equity in the project. Equity crowdfunding enthusiasts have hopes that in the United States, the JOBS Act will eventually go into effect, but that hasn’t happened yet. For now, only angel investors can back equity crowdfunding projects.

The debt crowdfunding websites like Prosper and Lending Club resemble a bank in their lending practices: investors receive interest on the money they’ve lent, and the borrowers receive capital that’s used for their project. Also known as P2P or Peer to Peer Lending, this crowdfunding format throws the window of opportunity wide open for investment from all levels.

The top crowdfunding websites 2014 for royalty crowdfunding have Quirky, TubeStart and AppsFunder in mind. The project returns royalties to the investors when it begins to generate sales profits, thanks to the money the backers provided to launch it.

Crowdfunding is a great way to meet your peers without having to do jury duty. Peer to Peer Fundraising, not to be confused with P2P lending covered earlier, is a vehicle for an organization’s supporters to raise funds for their favorite cause.

If you’re searching out the best crowdfunding sites for your project, you’ve probably noticed that some have target dates by which the funds need to be raised. These types are typically for rewards-based and donation-based crowdfunding projects. But there are distinctions within this category. All-or-nothing requires the campaign to raise the entire amount of the designated goal. If you don’t meet the goal by the stated deadline, you are not eligible to receive any of the funds that were raised. Flexible funding, on the other hand, allows you to keep the amount that you raised within the allotted time, even if you failed to reach your goal.

This difference between the two formats shows up in the fees that you will pay. If you fail to reach your goal on an Indiegogo flexible funding campaign, you pay a fee of 9 percent on the funds raised. If you meet your goal for either the flexible funding or the all-or-nothing campaigns, the fee is 4 percent.

As is the case with any financial arrangement, makes certain that, before choosing your platform, you know the terms of service. Pay attention to the guidelines, know the nature of your project and its needs, and then make your decision. You know that there’s a crowdfunding platform that’s just right for you.

Site: Kickstarter
Platform Type: Reward-based

Since Kickstarter’s inception in 2009, nearly $900 million has been raised for over 50,000 projects, on an “All-or-Nothing” basis. The joy of gathering crowdfunding, rather than searching for corporate sponsors, is that the artist gets to keep 100% of the creative rights.

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Site: Indiegogo
Platform Type: Reward-based

IndieGoGo isn’t restricted to the creative art niche, though it began in 2008 as a fundraising platform for independent films. From business funding to health-related community projects, IndieGoGo is the social fundraising platform without limits or restrictions on the type of project.

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Site: GoFundMe
Platform Type: Reward-based

Nor are donors charged any fees, though any donations include a standard 5% fee (for GoFundMe), and a 3% processing fee, though charities and non-profit causes are charged 4.25% for processing. GoFundMe’s international crowdfunding campaigns (in Canada, Australia, Europe, and the United Kingdom) are charged Paypal rates for transaction fees, but the good news is that GoFundMe doesn’t add on any extra charges or exchange fees.

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Site: Pozible
Platform Type: Reward-based

Many of the crowdfunding campaigns offer a great deal for arts and science projects, but there aren’t a great number of options for those who are tech-savvy and independent. Pozible offers three new differentiating factors: subscription crowd funding, research-oriented crowdfunding, and independently hosted crowdfunding.

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