Questions? Feedback? powered by Olark live chat software

The Top 5 Crowdfunding Sites To Launch A New Project

Posted by: on Mar 13, 2015 | No Comments

Today let’s take a look at the top 5 crowdfunding websites. First, let’s obtain an understanding on what crowdfunding is and how it can be beneficial for you. Crowdfunding is a system or platforms that allow everyday people with limited funds to raise funds for an idea, project or charity requirements to successfully raise funds. Some sites like Kickstarter and Indiegogo crowdfund sites give the project organizers the ability to offer rewards or perks to people who donate to the projects. A crowdfunding reward or perk is a special incentive and thanks to the contributor for providing funds to a particular project. However, some sites like GoFundMe do not offer people that donate a reward or perk for donation. The GoFundMe platform is used more for helping people with financial issues such as personal bills, charity, financial hardship or medical issues. Let’s find out which crowdfunding sites are the top 5 sites online. Drum roll….

RocketHub-logo-transparent

5. Rocket Hub was launched in January 2010 to help people receive funding for an array projects that range from fashion, music, game development, entrepreneurs, film makers, scientist and much more bring awareness to projects and endeavors. The project leaders can use social tools such as Twitter, Facebook or other platforms to create awareness toward their projects. Unlike Kickstarter which require projects to successful raise the entire funding goal before funds can be released, Rocket Hub allow projects to keep any money raised during the crowdfund campaign. Rocket Hub also allow projects to offer rewards/perks in exchange for contributions. Rocket Hub charges 4% of all funds collected plus a 4% payment processing fee if the project is fully funded. However an 8% fee is charged plus a 4% payment processing fee if the project does not reach its goal. I never used Rocket Hub but it’s very similar to other crowdfunding platforms on our list.

crowdtilt
4.Crowd/Tilt was launched February 08, 2012. The Crowd/Tilt platform makes it easy for groups and communities to collect fundraiser money or pool money successfully online. When I first heard about the platform a couple of years ago I really liked the approach or the idea for a group of people or friends to pool money for a goal, project or idea. The Crowd/Tilt platform was created by James Beshara to help fund loans to micro-insurance organizations under the URL Dvelo.org. In a stroke of genius Beshara shifted the model for Dvelo.org to focus on raising funds for parties, gifts, events and other charity causes. In 2011 Beshara hired Khaled Hussein as a co-founder and re-branded Dvelo as Crowdtilt. The company also branched out and released application programming interface (API) which give third-party tools for integration of the platform on websites called tilt/Open white-label platform that allow pre-orders, donations and much more custom crowdfunding tools.

gofundme_logo

 
3. GoFundMe was launched in May 10, 2010. The GoFundMe crowdfunding platform is a little different because it allow people to raise money for events ranging from life events like celebrations, graduations and financial medical hardship just to name a few causes. The platform was created by Brad Damphousse and Andrew Ballester. The platform was originally created under the name “CreateAFund” in 2008. The team later changed the name to GoFundMe in 2008 after a few upgrades and features to the website. The site is simple to use. The GoFundMe platform allow users to create their own website and provide a detail description on the purpose for raising funds for. Like the other platforms the users must share the completed website via Facebook, Twitter or other similar social platforms. The site does not require users to offer rewards or perks. A perfect example of the power of GoFundMe was the current internet story that went viral about Detroit factory worker 56-year old James Robertson who could not afford a car to commute to work in which he walked 21 miles a day. His GoFundMe campaign raised a whopping $300,000 plus from people from around the world and he received a free car from a local car dealership. The GoFundMe platform automatically takes 8% fee from each donation a user receives. If the campaign does not raise any funds there will be no charge.

indiegogo_logo

 

2.Indiegogo was launched in 2008 Danae Ringelmann, Slava Rubin and Eric Schell. The Indiegogo platform is among the easiest crowdfund sites to use. The platform is open for all type of fundraising projects, such things as ideas, charity or business. What I like about the Indiegogo platform, unlike Kickstarter that require all technology projects be approved by Kickstarter before the campaign can go live but the Indiegogo platform is open for all types of projects. I like the safe guards that Kickstarter have in place but Indiegogo give creators with the most ambitions ideas a chance to raise funds for any project idea. The site allow project managers to offer people who donate to their projects “Perks” as a reward for contributing to the project if it successful reach it funding goal. Another aspect of Indiegogo stress free funding policy is that projects that don’t reach their funding goals still have the option to collect on the funds receive for the campaign. Indiegogo charges a 9% fee on contributions and returns 5% if the campaign reaches its goal. Indiegogo is working on new crowdfunding options on the platform from crowdfund protection insurance to Indiegogo Life services from emergencies or other life events for potential crowdfunding opportunities. Indiegogo is the crowdfunding platform if you need to get an idea going without restrictions yet the site has many tools to successfully get your project moving in the right direction.

kickstarter-logo-light - Copy

 
1.Kickstarter was launched April 28, 2009 by Perry Chen, Yancey Strickler and Charles Adler. Kickstarter is the top crowdfunding website online. The Kickstarter platform operate different from the other platforms we have listed today. A Kickstarter project must collect the required funds set by the campaign creator before a certain timeframe or no funds will be released to the project. This type of marketing really help the campaign contributors help spread the word for a project they want to successful accomplish its goal and ship the product to contributors. I used Kickstarter a few times. The platform is straight forward and offer a good backend management system. The Kickstarter platform is the #1 site new tech and design projects go because of the built-in Kickstarter audience and reputation of the platform. The Kickstarter platform is backed by venture capital funding and reports say the platform has raised $10 million from venture capital and angel investors. From my research it seems Kickstarter has the lowest fees. Kickstarter charge a 5% fee on all funds collected for successful campaigns and payment processor fee of 3-5% fee for credit cards.

There you have it! The 5 top crowdfunding sites.

    Leave a Reply

    You must be logged in to post a comment.

    Real Time Web Analytics