The hundreds of crowdfunding sites available to help raise money online can be broken into 2 main model types: donation-based and investment crowdfunding. Within these models, sites offer a variety of niche focuses. With your startup costs and particular business concept in mind, find help to crowdfund your startup with these 6 sites.
Believers Fund
Believers Fund offers the opportunity to explain why your mobile app idea is unique. This crowdfunder allows you to pitch your app to an expert panel made up of industry experts. Your idea will be screened based on the project’s practicality and your commitment. Apps that receive a score over 70% are given a AAA Certified label, which enhances funding chances.
Kickstarter
Kickstarter is the go-to crowdfunder for creative types with ideas for everything from music and art to films, games, design, and technology. Kickstarter accepts projects of all sizes and, since they launched in 2009, have had more than 4 million people pledge over $686 million for more than 44,000 projects. This crowdfunder serves as a platform and resource, but it isn’t involved in the development of the projects. Plus you must be a permanent U.S. resident with a Social Security number to participate. Kickstarter leverages popular social networks like Facebook, Twitter and Pinterest to drive traffic to projects and give DIY upstarts a fighting chance to fund their products.
Crowdfunder
Crowdfunder provides a crowdfunding platform for businesses. They offer a mix of investment crowdfunding from individuals and angel investors as well as donation-based crowdfunding. Crowdfunder connects local investors with local entrepreneurs online and offline. While this site is still relatively new, it has held two successful crowdstart contests to connect startups and small businesses with local capital.
Start Some Good
Start Some Good is a new crowdfunding site for non-profit entrepreneurs that is designed to help people or groups who have ideas for social-good initiatives. Start Some Good also works with for-profit entrepreneurs with similar goals. To approach this crowdfunder, projects must create “new, tangible good” and meet the site’s criteria.
Crowdrise
Crowdrise is a crowdfunding site that raises money for personal fundraisers and for charity. It’s a cost-effective option for individual fundraisers for personal or volunteer ventures, fundraising events like runs/walks, and non-profit fundraising like memorials and causes. The biggest complaint users have had is that the interface on the site is confusing to use. Companies like Asapy can help develop your site to help user friendliness and manage your site while you are busy raising capital. Having a company to take care of the technical aspects of your business opens up time for more money to be raised and sales to be made which will help your campaign look even better.
Quirky
Quirky is the go-to site for inventors and tinkerers. The site launched in 2009 and has changed the way the world looks at product development. For those with a new product in mind, Quirky provides a crowdfunding platform where you collaborate and crowdfund for donation-base funds. Quirky brings at least 3 new products to market each week, though some who have had ideas rejected complain the evaluation process is flawed.
When seeking crowdfunding, it’s important to consider the costs of doing business for the first few months. Figure in one-time costs like fees for incorporating, licensing, and signage as well as ongoing costs like utilities, inventory, and insurance from a company like The Hartford. Crowdfunding offers an alternative way to raise funds, and the momentum created by successful crowdfunding campaigns can also attract potential investment from traditional channels, too. Making sure that you patent your idea is important as well, visit http://howtopatentsomething.org/ for more information.
