4 Best Crowdfunding Platforms for 2020
Crowdfunding is basically the idea of collecting funds from a large number of people online for a certain project or some special cause. Many small businesses and even individuals can use this idea to avail of early-stage support to lead a potential idea.
There are generally three methods of crowdfunding: equity crowdfunding, debt crowdfunding, and reward crowdfunding. With the first option, you give ownership in some part of your company to all the people who provide funds. In case of debt crowdfunding, you get a loan, especially from the bank, and commit to paying it back within a set time duration. The third most choice is reward crowdfunding, where you try to reach supporters online and offer them certain gifts or a product sample as rewards.
If you are looking for some fund-raising opportunities, it is first important to select the best platforms online. Below we have listed four such options that you can choose for your upcoming crowdfunding project:
Here is the most popular name for crowdfunding projects. This platform was established in the year 2009, and the company till now has supported more than 155,000 fund-raising projects worldwide. It is an all or nothing type of crowdfunding platform where you get your money only after completion of the campaign. Also, for every fund you receive, you have to send a small gift to your donor. Note that in order to receive your funds, you may need to wait for the estimated time of 14 days.
People prefer to use this platform for raising funds to lead some community projects, creative works, or tech innovations. There are two options for fundraising; either you set up a fixed funding model or a flexible funding option. The first one is much better when you need to achieve a certain amount of funding to start your project; however, in the second case, you can avail benefits from any funding. In case if your campaign goal is not achieved, the site doesn’t charge any fixed fee, whereas, for the successful campaigns, they charge 5% of all fixed and flexible funds.
Causes are listed among the world’s largest platforms for crowdfunding focused on cultural, political and social issues. This website is recommended for non-profits that are interested in creating a donor’s community without working on networking. Note that this platform runs ads; hence, it doesn’t charge a fee for received funds. On your crowdfunding page, you can raise awareness, collect donations, and share relevant details to the interested donors.
This crowdfunding platform provides $300,000 for business loans and $40,000 for personal loans. People find this platform better choice over a regular bank, and it offers a faster response for your plans and projects. This site follows the debt crowdfunding idea, and you can avail a loan for 1 to a 5-year term. Depending upon your credit score, the interest rates may vary. This platform requires a user to achieve annual sales of almost $50,000, and they need ownership of almost 20% business.