6 Top Crowdfunding Websites: Which One Is Right For Your Project?

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Forbes | Kate Taylor | August 6, 2013

kickstarter-website

Kickstarter, one of the most popular and earliest crowdfunding websites, is now open to Canadian projects. (Photo source: Kickstarter.com)

If you’ve been on the lookout for funding for a startup project in the last few years, you’ve likely explored  crowdfunding – or, more specifically Kickstarter. But there’s a growing number of websites dedicated to finding funds for a creative and entrepreneurial projects, with Kickstarter in the lead. However, not all crowdfunding sites are created equal. Here’s the breakdown on which may be the right one for you.

Kickstarter

In a sentence: Kickstarter has become synonymous for crowdfunding, as the most popular site to find funding for creative projects.

Cost: 5% of funds raised, with an all-or-nothing model that builds urgency but leads to the loss of all funds if the goal isn’t met, plus 3-5% transaction fees

Pros: Name recognition, highest site traffic allows for greater project visibility

Limitations: approval process, limited to creative projects, only allows projects based in the US and UK

Indiegogo

In a sentence: This flexible crowd-funding site serves as an open and accessible option for campaigns worldwide.

Cost: On the all-or-nothing plan, 4% of the funds of successful projects go to Indiegogo. On the flexible funding plan, Indiegogo charges 4% if you reach your goal, 9% if you do not reach your goal. Transaction fees are an additional 3%.

Pros: No application process, available in every country, diverse spread of projects

Limitations: More expensive if you don’t reach your goal, but without the urgency of the all-or-nothing plan

RocketHub

In a sentence: This crowdfunding website offers a unique type of visibility through a recent partnership with A&E Project Start Up.

Cost: 4% for completed campaign or 8% for partial campaign, with 4% transaction fees.

Pros: Easy to navigate interface, Success School offers tools for building better projects and businesses

Limitations: Step down in terms of traffic from Kickstarter and Indiegogo

FundRazr

In a sentence: This website is dedicated to raising money for anything from personal causes to nonprofits to entrepreneurial projects.

Cost: 5% for completed or incomplete campaign plus 2.2% +$.030 transaction fees

Pros: Deep social network integration to connect to people in your network, cheap and convenient transaction fees with funds going directly to your PayPal, can be used to fund anything, anywhere

Limitations: More difficult to connect with other entrepreneurers and investors, with less than 5% of projects falling into the category of entrepreneur/creative

There are plenty more crowdfunding websites emerging on the scene, such as GoFundMe,Ulule and RockThePost. As the market grows, some sites grow more specific, such as Moola Hoop, which is centered on female entrepreneurs, or community-funded reporting site Spot.us. Take time to examine each site to find one that fits your needs in terms of potential funders, the quality of other projects and the site’s usability. Then, get the funds to jump start that project you’ve been waiting for.

To view the full article with all 6 crowdfunding websites --> click here

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The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country.  NCFA Canada provides education, research, leadership, support and networking opportunities to over 1300+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada.  Learn more About Us or visit www.ncfacanada.org.

 

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One Response to 6 Top Crowdfunding Websites: Which One Is Right For Your Project?

  1. Martin Stone says:

    Hello,
    My wife and I own an organic family run Rhodiola farm in Manitoba. This is a new crop for the prairies that will help diversify farm crops and reduce the reliance on the unpredictable grain market. Adoption of this crop could mean the difference between keeping farms in the hands of families that have owned and run them for 50 years or more or losing them due to debt and outstanding loans. Stone Country Acres is the only Rhodiola farm in Manitoba at this time and we would like to know if crowd funding is an appropriate method to help us meet our financial goals to purchase much needed equipment and hire help for this coming growing season. We have been personally financing this since we started this project in 2011 but could use some help now. We are at the stage where we are able to harvest our own root stock for transplanting our annual planting, meaning we no longer have to purchase seed or root cuttings from outside sources. Our first marketable crop will be ready for harvest 2016.

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