Top 5 Best Crowdfunding Sites for Micro Businesses
Thanks to the internet; raising capital for your home based bakery or photography business is easier than ever before. Whether you have to raise funds for your new business idea, a cause, or personal needs, you can do it using online crowdfunding platforms.
Most of the online crowdfunding websites offer an easy-to-use system to register, create and launch crowdfunding campaigns and start raising funds. There are literally hundreds of crowdfunding sites; some of these are niche specific, while many of these cover almost all industries.
Availability of so many crowdfunding websites is great in one way as you have many options, but it can be overwhelming too and you may end up making a ‘not so wise’ choice.
To help you get started, this article will list the top five crowdfunding platforms that are super easy to use, have strong historical stats of generating funds for hundreds and thousands of individuals and businesses, and have better and transparent pricing.
Let’s explore the list of the top 5 best crowdfunding websites for micro businesses:
Kickstarter is one of the best crowdfunding platforms for creative projects and startups in 15 categories, including; Arts, Comics & Illustration, Design & Tech, Film, Food & Craft, Games, Music, Publishing, etc.
So far the platform has fulfilled more than half a million projects whereby the projects have raised more than $6 billion. Most projects on Kickstarter raise under $10,000, however, some even raise a huge amount. More than 500 projects on the platform raised more than $1 million.
GoFundMe is one of the best crowdfunding platforms for causes and charity fundraisers. It’s very easy to use; signup and start your fundraiser simply by setting your fundraiser goal and telling your story. Add a picture or video for better explanation and share with friends and in your network.
So far the platform has raised over $9 billion from more than 120 million donations and the numbers are ever growing. Most popular fundraisers on the platform include medical, emergency, memorial, education, nonprofit, and coronavirus fundraising. If your micro business is a non profit or is working to support a charity or a cause, this platform is the best option.
Indiegogo is the most popular and best crowdfunding platform for tech products and projects, social impact campaigns, and environmental innovation projects.
Indiegogo receives more than 10 million users from more than 200 countries every month and more than 19000 campaigns are launched each month.
If your micro business is focused on an innovative solution that makes the life of a certain user group easier, launching a fundraising campaign through Indiegogo is your best bet.
4- Lending Club
Lending Club is a fintech; “peer-to-peer” lending platform for personal loans whereby they assess your risk and let the investors lend directly to you. Their service charges vary depending on credit risk.
The platform is available for people in the US only. If you are looking for a funding option in which you don’t have to give away the equity, Lending Club can be the right choice.
Fundable is another best crowdfunding platform based in the US, however, they do not work with companies that don’t have a US presence. You may be headquartered elsewhere, but must have a US presence, i.e. a US bank account, address, and social security number or business tax ID number are the must.
Fundable is not an industry specific platform and almost all types of businesses can launch their fundraising campaigns. The platform has also helped thousands of entrepreneurs raise millions of dollars for their businesses.
Summing it Up
There are hundreds of more crowdfunding websites out there that work with regional businesses, and niche specific projects and products. But if you are new to fundraising for your micro business, you must focus on any of the above best crowdfunding websites for micro businesses first.