Top Tools / February 2, 2022
StartupStash

The world's biggest online directory of resources and tools for startups and the most upvoted product on ProductHunt History.

Top 14 Crowdfunding Tools For Startups

It looks like you have decided to establish your own company with your brilliant startup idea. But hang on a second - how will you fund your startup? It's time to engage with the public using some crowdfunding tools unless you know some wealthy potential buyers or investment firms.

Crowdfunding sites integrate your startup with eager investors and financial donors. Such financing tools will help you gather the funds to give your business a kickstart.

We've compiled a list of the top tools for your ease that will help you with crowdfunding.


1. GoFundMe

GoFundMe helps startups to raise money for everything from individual medical expenses to keeping local companies afloat. Since its inception in 2010, it has generated over $9 billion in sponsorships from over 120 million donors. Because of its appeal and ease of use, this site is an excellent place for people to donate.

In three simple steps, you can create a Gofundme account. Begin by specifying the sum you want to gather in your project. Then you might convey your tale and appeal to potential investors to convince them. Finally, use social media sites, text messaging, and email to inform your relatives and friends about your initiative.

Key Features:

  • Charity fundraising

  • Donor protection

  • Let’s you keep the funds collected irrespective of whether you achieved your goal or not

  • Can be accessed from mobile as well

Cost:

2.9% payment price and $0.3 per pledge


2. Fundable

Fundable provides all equity and rewards-based crowdfunding solutions. It does not just take a percentage of your revenue; users pay a monthly subscription to use the service and can launch campaigns to get money as long as they are authorized by Fundable, which is extremely useful for successful campaigns.

Key Features:

  • Has an equity program for soliciting investment

  • Equity crowdfunding can keep funding until the goal is reached

  • Additional sources can be accessed

  • B2B and B2C operations are treated differently

  • Low monthly fees for subscription

Cost:

$179 per month


3. WeFunder

Wefunder enables equity crowdfunding, which implies that in return for their investment, investors receive shares of a company. Startups can also use the platform to participate in debt crowdfunding, which implies that they will be liable to repay the money they get in funding. Wefunder is one of the finest crowdfunding platforms for firms that hope to receive venture capital investment owing to quick growth in the future.

Key Features:

  • Access to other resources such as legal assistance

  • Good for high-growth startups and tech startups

  • The success rate is approximately 75%

  • Allows users to raise money starting from $50,000 to $5,00,000

Cost:

7.5% fee


4. Indiegogo

Indiegogo is a financing platform that also serves as a market for unique products. You may set up a funding campaign to generate funds for an innovative product you'd want to launch. You can start gathering money on the platform by creating campaigns that run up to 60 days. To advertise your campaign, you can use the services to integrate with other platforms such as Facebook. You'll be eligible to get money from the bank in 15 days after you've raised money.

Key Features:

  • Gives a dedicated following of supporters that help spread your idea and raise funds

  • Does not stop funding after a specific time

  • Services available in more than 200 countries

  • Flexible needs to start a campaign

  • Can connect to social media platforms

Cost:

5% fee


5. Crowdcube

Crowdcube is a crowdfunding platform that allows you to turn your friends, relatives, and clients into investors. To connect into Crowdcube's investor community, they'll help you set fair targets, an acceptable value, a compelling pitch, and a good communication plan.

When your pitch reaches 20% of the goal you specified, the audience will be informed. If that isn't enough motivation, the average pitch will hit its target in 22 days. If you've reached 75% of your goal, Crowdcube's legal experts will help you end your campaign quickly. It enables seed, early-stage, and growth-stage financing, so you can continue to utilize the same platform as your company expands.

Key Features:

  • Investment opportunities

  • Tax relief for investors

  • Seed funding for startups

  • Growth funding

  • Funded community

Cost:

5% of the success fee


6. Kickstarter

Kickstarter is a crowdfunding too that connects artists, singers, producers, designers, and other innovators to the resources they need to realize their visions. Since its inception in 2009, the organization has assisted 15 million people in pledging $4 billion to sponsor over 145,000 projects. Because crowdfunding is all-or-nothing, you must achieve your goal within the allocated time frame, or everyone's money will be returned.

Key Features:

  • Trusted platform to raise money

  • Services are available in 7 countries

  • Several opportunities to earn rewards

Cost:

2.9% fees


7. iFundWomen

iFundWomen enables female entrepreneurs to access finance, receive required coaching, and make crucial business contacts. Its most appealing characteristic is its large female fanbase. This makes it possible for female-focused business ideas and products to reach their intended audience.

Key Features:

  • Focuses on women-led businesses

  • Flexible funding

  • Organic promotion

  • Flexible campaign length

  • Strong customer support

Cost:

No starting fees


8. CircleUp

CircleUp has been dubbed "the future of independent investment" amongst the crowdfunding tools. It's a new way to raise venture cash for the sake of crowdsourcing projects. It's a mix of cutting-edge science and industry know-how put to the platform user's benefit.

Key Features:

  • Pre-set funding

  • No limit for the length of campaigns

  • Instant payment processing

  • Access to investors and partners of CircleUp

Cost:

No starting fees


9. SeeInvest

SeedInvest has drawn more than 400,000 investors and supported more than 230 start-ups in obtaining about $400 million in financial assistance, and is widely recognized as the finest alternative for start-up enterprises. It is a method for raising capital for professional, high-growth, and startup firms.

Key Features:

  • Venture capital firms are a part of it

  • Unsuccessful campaigns do not have to pay fees

  • Access to a lot of resources

  • Secure funding

Cost:

7.5% placement fee


10. Patreon

Patreon crowdfunding tool lets artists, singers, authors, and others get paid for their work by selling subscriptions to their supporters. People pay you a monthly charge of their choice in return for exclusive experiences and content, creating a meaningful cash stream. About $300 million has been delivered to producers, and the average client pays a monthly charge that is higher than most Netflix or Youtube subscribers pay.

Key Features:

  • Assists creative makers in generating money

  • Users can set their own monthly subscription fees

  • Flexible funding options

  • Integrations make funding easy

Cost:

5% fees


11. Fundly

Fundly helps people fund everything from healthcare needs to political campaigns and even vacations. Establish a page, administer your fundraiser from the Fundly application, and maximize your reach using Fundly's Facebook connection. There is no minimum sum of money that you have to raise through this tool.

Key Features:

  • Cashouts can be made on a daily basis

  • Facebook integration

  • Visibility and analytics of your campaign

  • Peer to peer fundraiser

Cost:

4.9% fee


12. Chuffed

Chuffed can assist you if you have a good cause group dedicated to helping wildlife or the climate. It operates its business through crowdsourcing and instills that mindset in its users. If a donor has a positive experience, they can choose if they want to pay the service fees. Aside from that, the website allows users to keep 100 percent of the funds they received.

Key Features:

  • Funding for a social cause

  • Crowdfunding and peer to peer funding

  • Zero fees to start the campaign

  • Optional contribution model

Cost:

2% processing fees


13. StartEngine

StartEngine is a great option for investors who want to contribute a specific amount of money to a project. It's an app that lets people invest in start-ups when they're still in the early stages of development. It enables ordinary individuals to put their money into firms or start-ups they admire and obtain shares in return, starting with as little as $100.

Key Features:

  • Investments can start from as little as $100

  • Invest in collectibles

  • Assists startups with seed money

Cost:

Free for campaigns


14. StartSomeGood

StartSomeGood is a crowdfunding tool that focuses on raising funds for social causes. It can assist you with funds for a positive project. They are interested in your potential to have an impact on society, whether you are a charity, for-profit, unincorporated entity, or any other classification.

Because StartSomeGood understands that lasting change takes time, you are not required to meet your objective within the campaign's designated time frame in order to use this tool. You can gather funds as long as your idea or effort is new and follows the requirements.

Key Features:

  • Fundraising for a social cause

  • Time-limited campaigns

  • Crowdfunding academy

Cost:

Free


Things to Consider While Choosing Crowdfunding Tools for Startups

There are an increasing number of crowdfunding tools accessible to conduct your financing campaign as crowdsourcing becomes a more prominent method of obtaining funds for business ventures. It's worth your time to look into the various internet platforms to see which one will work best for you.

When selecting a crowdfunding site, there are several factors to consider, such as:

Investors

Individuals, companies, and investment firms can all contribute to a project, although some platforms limit themselves to a single type of investor.

Cost

Each platform has its own pricing system for its services. Coordination fees, administrative costs, lawyers fees, accomplishment fees, transaction costs, commission fees, and other expenses may be included. You need to make sure that you are not paying for services that you don’t want to use.

Platform type

Certain platforms are simply websites that connect startups and investors. Others play an active role in your campaigns, such as providing one-on-one help and advice.

Format and Style of the Platform

Every website has its own model, structure, and pledge procedure, which appeals to different sorts of investors. Understanding what's essential to potential investors and which networks they like will help you figure out which route is most likely to get you to your funding goal.

Safety

Will investors feel safe putting their money into the website? When conducting online fundraising transactions, you must guarantee that the tool you use is safe and adheres to all legal standards.


Conclusion

For businesses, ambitious individuals, and innovators, crowdfunding is one of the most favorable small company financing options. It offers alternative investment options to those who are unable to secure financing for their company through traditional financial institutions and our list will surely help you seek out the best crowdsourcing tools for your startup.


FAQs

What is Crowdfunding?

Crowdfunding is the process of raising money from a group of people. To acquire the necessary funds to start a new firm or idea, a big number of people combine tiny, individual investments. Individuals, nonprofits, and businesses can all participate in a campaign to help a specific cause.

What are Crowdfunding Tools?

Small businesses and startups can use crowdfunding tools to raise funds in exchange for shares, incentives, debt, or even nothing. Crowdfunding can help you get funds quickly, but it necessitates a good marketing approach, transparency, and even giving up some ownership in your company.

What should you consider while choosing crowdfunding tools?

It's important to think about how much money you want to raise before enrolling in crowdfunding. If you're establishing a rewards-based program, make sure to include a list of the incentives that supporters will earn. If you're using equity, you'll need to mention how much you own and, if feasible, the price of your shares.

If you start equity crowdfunding, you'll have to tell investors about your finances and business. This implies you must give all the details about your firm, including estimates and financial documents, as well as a sound business plan and an accurate assessment for companies that are already in operation.

It's also crucial to plan for the possibility of not receiving the desired amount.

What are the most common types of crowdfunding?

Crowdfunding your startup idea can be a quick and efficient way to raise capital. You should, however, understand the type of crowdfunding that is ideal for your company and what it includes. Some of the most common types of crowdfunding include:

Reward-based crowdfunding: One type of crowdsourcing is rewards-based crowdfunding. Funders are provided items, services, or other things in return for a fixed donation amount.

Donation-based fundraising: If you're a charity or a small business, donation-based funding may be an option. It only takes a few minutes to set up a campaign to solicit donations for your company. There is no obligation to repay the money because it was given freely.

Equity crowdfunding: Equity crowdfunding is one of the most common methods of fundraising. You sell a part of your company to an investor or a group of shareholders, who then supply you with the funds (capital) you need to grow your company.

Debt crowdfunding: Often known as "marketplace" crowdfunding, debt crowdfunding is when a company owner borrows money from a group of people rather than a bank. You acquire money at a fixed annual percentage, and the loans are frequently arranged in the same way that a regular company loan is.

What is the process of crowdfunding?

Crowdfunding platforms make it simple for an individual or small business to present a campaign to a worldwide audience, with many people willing to pledge funds to the initiative. Follow these steps to help you get started with your crowdfunding:

  1. Decide on the platform you'll use: Begin by deciding if you want to use a platform that is focused on equity or rewards. Determine how long the site allows campaigns to continue. It's a significant factor. Is there a limit to how much you can contribute? Find out who is likely to notice it. Different types of investors may be attracted to different sites.

  2. Have the platform accept you: Fill out the online application and upload any papers that are required. The tools will check to see if you're a real person. If you intend to use equity-based crowdfunding, you may need a prospectus or contract letter. The agreement lays out the parameters of the funding, as well as the obligatory risk cautions and investor cooling-off periods.

  3. Make your pitch: You'll be able to construct your pitch once your application has been accepted by the site. Describe your concept, why you want to collect funds, and how much you want to raise. The pitching process necessitates a significant amount of effort. It's a comprehensive marketing strategy for promoting your business or idea and attracting investors.

  4. Campaign outcome: Some social fundraising sites allow you to collect all of the funds raised during the campaign. Other platforms require you to establish a target and only get money if you meet it.

Top 14 Crowdfunding Tools For...
StartupStash

The world's biggest online directory of resources and tools for startups and the most upvoted product on ProductHunt History.