BusinessBusiness and Finance

Top 10 Crowdfunding Platforms for Business in the USA

9 Mins read

1. GoFundMe

GoFundMe is widely recognized as a premier platform for collaborative funding, especially for community projects and charitable causes. It is renowned for personal fundraising and provides a secure and user-friendly online environment for its customers.

The platform emphasizes privacy and security, ensuring users can share their stories and campaigns without fear of fraud.

GoFundMe has established itself as a reliable choice for individuals and organizations seeking to fundraise for various needs. Its ease of use, robust security measures, and extensive support make it a standout option in the crowdfunding space.

Key Features

  • It is ideal for community projects and charitable causes.
  • There are no fees to start a campaign.
  • High level of privacy and security.
  • Easy sharing and personal storytelling.
  • Expert customer support team.
  • We have raised over $30 billion for various efforts.
  • Available in 19 countries.
  • 100% of funds raised are accessible.

Pros

  • There is no fee to start a campaign.
  • Well-known and trusted platform.
  • No obligation to return donations.

Cons

  • It can be challenging to gain support initially.
  • High competition among campaigns.

Fees

  • There is no fee for starting a campaign.
  • 2.9% + $0.30 processing fee per donation.

2. Fundly

Fundly offers a straightforward and efficient way to access your money quickly, making it a valuable resource for various fundraising needs, from community projects to creative endeavors. Fundly does not charge any startup fees, and its user-friendly platform ensures that setting up and managing a campaign is hassle-free.

Fundly’s ease of access to funds and supportive resources make it a strong choice for those looking to raise money quickly and efficiently. Despite some user interface challenges, its benefits make it a viable option for fundraising projects.

Key Features

  • Quick access to funds, typically within 48 hours of a donation.
  • There are no startup fees.
  • Automatic transfer setup.
  • Suitable for a wide range of fundraising needs, including nonprofit projects.
  • Provides tools and resources to help users raise money and generate ideas for further business growth.
  • Online fundraisers for nonprofits.
  • Credit card processing fee of 2.9% plus $0.30 per transaction in the US and Canada.

Pros

  • Good customer service.
  • An easy-to-use platform for donors.
  • A low transaction fee of $0.30 per transaction in the US.

Cons

  • Interface and logic can be confusing for some users.

Fees

  • 4.9% transaction fee on donations.
  • 2.9% credit card processing fee.
  • $0.30 per transaction in the US.

3. Indiegogo

Indiegogo is a versatile crowdfunding platform for businesses, artists, and nonprofit organizations. It’s known for its user-friendly tools and flexible campaign options, making it an excellent choice for those looking to fund extra production or expand their audience. Unlike some other platforms, Indiegogo doesn’t offer live crowdfunding campaigns but features a marketplace for new products.

Since its inception, Indiegogo has helped entrepreneurs raise over $1 billion for over 800,000 projects. One of its standout features is the absence of strict fundraising targets or deadlines, allowing campaigns to continue raising money indefinitely. Additionally, it supports various funding options, including equity, securities, revenue-sharing, and even cryptocurrency sales.

Indiegogo’s flexibility and wide-ranging support make it a strong choice for those seeking to fund diverse projects. The ability to continue raising money without strict deadlines is particularly beneficial for long-term projects.

While the platform does have some drawbacks, such as higher fees and a smaller user base, its overall benefits and extensive reach make it a valuable tool for many entrepreneurs and creators.

Key Features

  • Supports various projects, including business ventures, artistic endeavors, and nonprofit causes.
  • Offers tools and options for easy campaign management.
  • There are no specific deadlines for fundraising; campaigns can continue indefinitely.
  • There is no set fundraising target, providing flexibility in how much you can raise.
  • Allows for equity, securities, revenue-sharing, and cryptocurrency sales.
  • Charges a 5% platform fee for all projects.
  • The campaign time limit is typically 60 days.
  • Connects with over 11 million backers across 223 countries and territories.
  • Provides both fixed and flexible campaign methods.
  • It helps investors find startups that match their interests.

Pros

  • Flexible funding options.
  • Supports a wide variety of projects.
  • Allows ongoing fundraising without strict deadlines.
  • Available to industries and creators in many countries.

Cons

  • Charges a 5% platform fee plus additional transaction fees
  • It is a smaller community compared to some other platforms like Kickstarter.
  • Flexible funding options can sometimes lead to underfunding.

Fees

  • Indiegogo charges a 5% fee on all funds raised for your campaign

4. Crowdfunder

Crowdfunder is designed to simplify crowdfunding, offering a streamlined way to raise money for various causes and new product ideas. It stands out by allowing you to transform a regular website page into a crowdfunding page, making it an ideal choice for Shopify owners.

Unlike many crowdfunding platforms that charge a percentage of the funds raised, Crowdfunder operates on a predictable monthly fee model. This means you can avoid commission charges and clearly understand your costs from the outset. The platform is handy for measuring customer interest and validating new product ideas through preorders.

Key Features

  • Enables simple crowdfunding.
  • Allows you to turn a product page into a crowdfunding page.
  • Ideal for Shopify users.
  • There are no commission charges, just a flat monthly fee.
  • Provides a pre-order button to validate product ideas and measure customer interest.
  • Great for raising money for causes or limited-run products.
  • Helps validate and enhance new product ideas.

Pros

  • Converts a product page into a crowdfunding page seamlessly.
  • Charges only a monthly fee, avoiding percentage-based commissions.
  • Predictable cost structure with a $24 monthly fee.

Cons

  • Lacks a marketplace feature.
  • It does not have a community aspect.

Fees

  • Charges a flat fee of $24 per month.

5. Kickstarter

Kickstarter is one of the most famous online fundraising platforms. It is renowned for its high-quality projects and global reach. Kickstarter has supported over 250,000 projects, helping bring new and innovative ideas to life.

Kickstarter operates on a reward-based fundraising model, providing backers with physical and digital products in return for their support.

The platform is particularly appealing to creative projects, aiming to catch the attention of early adopters with trustworthy and engaging campaigns.

Unlike some platforms, Kickstarter does not encourage donations but incentivizes backers with rewards. Campaigns on Kickstarter follow an all-or-nothing funding model, meaning projects only receive funds if they reach their fundraising goals.

Key Features

  • Supports a wide range of high-quality projects.
  • Operates globally to help bring new projects to life.
  • Reward-based fundraising model with physical and digital products.
  • Focuses on creative projects and early adopters.
  • Provides incentives for backers to support projects.
  • The all-or-nothing funding model ensures committed funding.
  • Large and active community with extensive backer engagement.
  • Offers higher rewards for higher pledge amounts.

Pros

  • Large and active community.
  • Excellent platform for creative projects.
  • Incentivizes backers with rewards.

Cons

  • Charges a 5% platform fee plus additional transaction fees.
  • Not suitable for personal fundraising.

Fees

  • 5% platform fee.
  • Transaction fees are between 3% and 5%.

Kickstarter stands out for its ability to attract a large and active community of backers, making it a prime choice for creative and innovative projects.

Its reward-based model and all-or-nothing approach provide a compelling structure for project creators and backers. While the fees can add up, the platform’s reach and effectiveness in bringing projects to life make it a top contender in the crowdfunding space.

6. CrowdStreet

CrowdStreet is a premier platform for real estate crowdfunding, revolutionizing private real estate investing since its inception in 2013.

Based in Texas, CrowdStreet connects individual investors with diverse investment opportunities through experienced commercial real estate (CRE) firms across the United States.

With over 329,000 registered members and more than 790 funded deals, CrowdStreet has become a significant player in the real estate crowdfunding sector.

CrowdStreet offers 24/7 access to a range of services, tools, and insights, making it a comprehensive platform for real estate investment. The platform has facilitated over 798 real estate deals worth $4.2 billion, with investors seeing substantial returns. Specifically, investors have cashed out 168 deals, generating a 17.9% realized internal rate of return (IRR).

CrowdStreet stands out as a top choice for real estate crowdfunding, offering individual investors the chance to invest in lucrative real estate projects without needing registration fees.

While the platform caters primarily to established real estate firms and requires thorough vetting, the potential for high returns and the diverse investment opportunities make it an attractive option for serious investors.

Key Features

  • Specializes in real estate crowdfunding.
  • Connects individual investors with CRE firms for diverse investment opportunities.
  • Offers 24/7 access to services, tools, and insights.
  • Over 329,000 registered members and 790+ funded deals.
  • Facilitated more than 798 real estate deals worth $4.2 billion.
  • High returns with a 17.9% realized IRR for investors.

Pros

  • Dedicated platform for real estate projects.
  • Provides investment management and marketing support.
  • Offers a variety of investment opportunities.
  • No registration fees for investors.

Cons

  • Primarily for established real estate firms.
  • Involves a thorough vetting process for projects.

Fees

  • Management fees range from 0.5% to 2.5% annually.

7. Patreon

Patreon is a unique crowdfunding platform designed specifically for digital creators. It is an excellent choice for podcasters, musicians, game developers, and videographers. Unlike many crowdfunding sites that support limited-run campaigns, Patreon operates on a subscription basis.

This allows creators to develop membership programs for their fans, who pay to join a community of like-minded patrons and access exclusive perks.

Creators can launch their Patreon page for free, but the platform collects a fee from the funds raised. Patreon offers a variety of exclusive perks based on different tiers, such as access to gated content, branded merchandise, sneak peeks, shoutouts, and more.

Additionally, Patreon supports various integrations to enhance content delivery on the platform, including uploading videos, hosting livestreams, and running forums and newsletter groups for patrons.

Key Features

  • Ideal for digital creators like podcasters, musicians, game developers, and videographers.
  • Subscription-based funding model.
  • Allows creators to develop membership programs with exclusive perks.
  • Free to launch, with fees collected by the platform.
  • Supports various integrations for content delivery.
  • Offers perks such as gated content, branded merchandise, sneak peeks, and shoutouts.
  • Enables community building through forums and newsletter groups.

Pros

  • Suitable for subscription-based funding.
  • Facilitates community building among fans.
  • Supports various integrations to enhance content delivery.

Cons

  • Not suitable for one-off projects.
  • Fees start at 5% and can go up to 12%, depending on the plan level.

Fees

  • Depending on the chosen plan level, platform fees range from 5% to 12% of the funds raised.
  • Depending on the payment method, processing fees can be up to 6% plus a $10 fee.

8. Fundable

Fundable is an excellent crowdfunding platform for small businesses and startups in the United States. As part of the Startup.co platform, Fundable, is among the top crowdfunding sites that allow U.S. startups to offer rewards, including equity, in exchange for funding.

This makes it a versatile option for businesses seeking financial backing and investor engagement. Fundable offers self-managed fundraising and compliant support services. The platform assists in creating a pitch deck and identifying prospective investors.

This dual approach helps startups organize their fundraising activities and track investor interest effectively. According to Fundable, startups that use the platform to offer rewards typically raise fewer funds but attract more backers, providing valuable support for early-stage ventures.

Key Features

  • Suitable for small businesses and startups.
  • Part of the Startup.co platform.
  • Allows offering rewards and equity in exchange for funding.
  • Provides self-managed fundraising and compliant support.
  • Assists in creating pitch decks and identifying investors.
  • Helps organize fundraising activities and track investor interest.
  • The campaign time limit is 90 days.
  • Over $700 million in funds raised.
  • More than 20,000 accredited investors.

Pros

  • Offers both rewards and equity funding options.
  • Provides campaign support and guidance.
  • Ideal for small businesses and startups.

Cons

  • High monthly fee.
  • Requires a subscription fee.

Fees

  • Subscription fee starts at $179 per month.

9. StartEngine

StartEngine is an impressive crowdfunding platform designed for expert investors. It has facilitated over $1.2 billion in investments across more than 1,000 funds, making it one of the leading platforms in the industry.

StartEngine offers a robust investment framework, with a share price of 3.5% and total investor contributions amounting to $1.8 million.

The platform supports a range of investment opportunities, including Regulation CF (Crowdfunding) offerings, which allow investments of up to $5 million within one to two months.

Additionally, it offers Regulation A+ choices, permitting investments of up to $75 million for more established businesses.

StartEngine ensures investor protection and provides extensive opportunities across various industries, making it a highly reputable and legitimate platform for investment.

Key Features

  • Designed for expert investors.
  • Facilitated over $1.2 billion in investments.
  • Supports more than 1,000 funds.
  • Offers a 3.5% share price.
  • Total investor contributions of $1.8 million.
  • Regulation CF offers investments up to $5 million.
  • Regulation A+ choices for investments up to $75 million.
  • Provides investor protection and numerous investment opportunities.
  • Comprehensive information is provided to users.

Pros

  • Offers access to investments across many industries.
  • Provides fair and transparent investments.
  • Recognized as a legitimate and reputable company.

Cons

  • Newer crowdfunding site.
  • Demands higher fees.
  • Investments are returned if funding goals are not met.

Fees

  • Charges a 3.5% fee on top of the share price.

10. MightyCause

MightyCause is a robust crowdfunding platform tailored to meet the needs of investors, particularly those interested in nonprofit initiatives.

This platform offers tools and services, including custom fundraising, donor management, CRM, marketing enhancement, and data analytics.

MightyCause aims to provide investors with the latest fundraising opportunities and support to ensure their success.

MightyCause is well-regarded for its non-profit donations and offers expert support to investors facing challenges.

The platform stands out for its ability to facilitate limitless investment opportunities, making it a prime choice for those looking to invest in nonprofit organizations.

it offers strategic sites and personalized tools to enhance fundraising efforts.

Key Features

  • Custom fundraising options.
  • Donor management and CRM tools.
  • Enhanced marketing and data analytics.
  • Latest fundraising opportunities.
  • Nonprofit donations.
  • Expert support team.
  • Limitless investment opportunities.
  • Suitable for nonprofit institutions.
  • Strategic sites and personalized tools.

Pros

  • Provides continual funding opportunities.
  • Offers free presentations.
  • Pricing guaranteed model.
  • Certified and nonprofit organization.

Cons

  • Charges high payment fees.
  • Some features are only available in higher-tier plans.

Fees

  • $119 per month for the Necessary tier.
  • $79 per month for the Accelerate tier.
  • Processing charges range from 0.95% to 1.19%.
  • Transaction charges range from 2.9% to 4.9%.
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