Top 5 Best Crowdfunding Websites of 2016 | Fincyte (2024)

Today, some of the BestCrowdfunding websites really help a large number of fresh graduates, who are coming in markets and trying to start their startup businesses. They all have innovative ideas and trying to launch their startup businesses,but unfortunately majority ofyoung entrepreneurs often get failed in fulfilling their startup dreams just because of capital shortage. If you are one of them and haveawesome business ideas but frustrated about how to finance your small business, then consider your frustrations are gone now because fundraising websites are there to sort out your issue.All you need to explore Best Crowdfunding Websites for personalinterestand then say bye-bye to your frustrations especially onhow to raise money for small business?

On internet, crowdfunding sites are on its peak in these days and that’s whynumbers ofentrepreneurs are raising funds from these websites. These fundraisingwebsites are playing very important role in revamping the small business industry and offering several benefits to Entrepreneurs in terms of raising money for startup businesses. Some major benefits of Crowdfunding sites are as follows:

  1. Investors in Best Crowdfunding Sites will force you to accomplish the goals and you are liable to fulfill your startup business dreams.
  2. If you become successful in launchingthe startup business then the investors, who invested in your business, will happily share your success stories on the internet especially on the social media platforms. We all know that social media marketing is very essential for building the business reputation and sharing of success stories will leave positive impact on your business marketing strategy.
  3. One of the best advantages of using fundraisingwebsites is that if you raise money for startup business then you will have full control on the capital as well as on the business management. But in the future, you will have to share part of the profit with the investors who helped you to fulfill your dream.
  4. During campaign, you can also get potential buyers that will surely boost your initial sales volume.
  5. If you want to start your own Property business, you can get crowdfunding for real estate investments.

Before you dive into the first fundraising campaign, it is very important to know and determine that which crowdfunding sites are best forindividuals orto get business loans.

Related:How to Run a Successful Crowdfunding Campaign?

Let’s explore the 5 Best Crowdfunding Websitesof 2016in terms of investors’ trends, most funded projects, popularity and other necessary information, so you can select the right platform to raise money for small business.

Top 5 Best Crowdfunding Websites of 2016 | Fincyte (1)

1).Kickstarter

Categories: Arts, Comics, Designs, Dance, Film, Fashion, Food, Music, Games, Publishing, Photography, Theatre and Technology

Fees Structure: Only 5% if you accomplish your goals including payment processing fees.

Payment Methods: Amazon Payments

Kickstarter is the best website to raise money online, it is one of the best platform and foremost fundraising priority for the citizens of USA and UK. It was launched in 2009 and up till now they have helped connect backers with 42K business projects and raised more than $649 millions.

According to the Alexa rank, website receives 8.9 million unique visits per month globally and this is the reason that how kickstarter projects get funding easily.

Pebble is still one of the most funded projects on the Kickstarter. Pebble was a project of E-Paper watch for iPhone. Their target was $100k but luckily they received more than $20 million from 78,471 backers.

2).Indiegogo

Categories: Arts, Comics, Designs, Dance, Film, Fashion, Music, Game, Photography, Transmedia, Writing, Video, and Entrepreneurial (Startup business, Food, Technology and Sports)

Fees Structure: Only 4% for successful funded project but if failed then 9% will charged plus payment processing fees.

Payment Methods: ACH, PayPal, First Giving or Wire Transfer

Indiegogo is also a good donation website. It isthe second famous crowdfunding site for fundraising on internet. In 2008, it was launched with the goal to help the entrepreneurs in order to accomplish their dreams.

In Alexa ranking, Indiegogo is at 194 while 2.9 million visitors visit this site per month globally. Up till now, Flow Hive: Honey on Tap Directly from your Beehive is the most funded project on Indiegogo. They had received $10.2 million from 37K backers.

3).Fundable

Categories: All types of Startup Businesses including Medical and Education

Fees: During active campaign, Fundable deduct $99 per month + payment processing fees

Payment Methods: We-Pay

Fundable is a third major best crowdfunding site for startup business.Itoffers equity or rewards in exchange of investment in the startup. According to the website statistics, startups that offer rewards or incentives they only successful in raising money up to $50K, whereas those small businesses that offer equity in business usually raise more money than normal fundraising.

Decision Desk is considered as the best funded project on Fundable.com. Their goal was to raise money up to $1.25 million and they did it.

4).Rocket Hub

Categories: Art, Business Education, Charity, Social and Science

Fees Structure: 4% for successful crowdfunding while 8% if you didn’t accomplish the goal + payment processing fees

Payment Methods: Digital Payment system

Rocket Hub is the only Crowdfunding platform that gained huge popularity after the success of A&E Networks. Numbers of educator, business, community and governmental projects are funded through Rocket Hub. In education sector, Rocket Hub is the leader in crowd sourcing sites.

5).GOFUNDME.COM

Categories: Education, personal startup business and personal causes

Fees Structure: 15% for donor while you’ll have to pay only 3%.

Payment Methods: We-Pay and Stripe

Unlike the traditional websites, Gofundme is acreative crowdfunding website which isworking differently and getting famous in all over the world. It was launched with the aim to improve the deprived sectors of society and resolve the personal financial issue. But it is still becoming the one of theBest Crowdfunding Websites on the internet because people are running their campaign to raise money for personal financial issues. People usually run their campaign to raise money for their startup businesses or personal causes. Up till now, more than $1.2 billion dollars raised for personal causes like illness, medical issue, personal startup funding, house building or maintenance, and education.

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Top 5 Best Crowdfunding Websites of 2016 | Fincyte (2024)

FAQs

What is the most successful crowdfunding site? ›

GoFundMe is the trusted leader in online fundraising, connecting more than 150 million people and organizations through its mission of helping people help each other.

What crowdfunding platform for startups launched in 2012? ›

2012: Fundable & JOBS act

Three months later, serial entrepreneurs Wil Schroter and Eric Corl launched Fundable, a “software as a service” platform where startups could raise capital through rewards-based or equity-based crowdfunding campaigns.

What was the first crowdfunding website? ›

Inspired by this innovative method of financing, ArtistShare became the first dedicated crowdfunding platform in 2000. Shortly thereafter, more crowdfunding platforms began to emerge, and the crowdfunding industry has grown consistently each year.

How big is the crowdfunding market in 2015? ›

The two most popular I've been seeing lately are an estimate from a Massolution study that pegs crowdfunding volume at $35 Billion globaly in 2015, and a World Bank commissioned study that hypothesizes that global crowdfunding could grow to $96 Billion by 2020.

Who is GoFundMe's biggest competitor? ›

However, while it may be the largest fundraising platform, that doesn't mean it's the best.
PlatformRankingFor
Fundly#1All causes
Bonfire#2All causes
Double the Donation#3All causes
IndieGogo#5Charitable causes
10 more rows

What is the biggest Kickstarter in history? ›

Four Secret Novels by Brandon Sanderson raised nearly 42 billion U.S. dollars, more than twice as much as Pebble Time, making it the most funded Kickstarter project of all time as of January 2024. Founded in 2009, Kickstarter has turned into one of the most prolific crowdfunding platforms worldwide.

Do you pay back crowdfunding? ›

Donation crowdfunding: Donation crowdfunding does not require the recipient to repay the funds. This crowdfunding type is typically geared toward charities and nonprofits. Debt-based crowdfunding: With debt-based donations, you'll repay the money with interest.

Which model is the most used form of crowdfunding? ›

Reward-Based Crowdfunding

Reward-based crowdfunding is one of the most popular forms among startups and entrepreneurs.

What was one of the original crowdfunding projects occurred in 1997? ›

Early campaigns

Marillion started crowdfunding in 1997. Fans of the British rock band raised $60,000 (£39,000) via the internet to help finance a North American tour.

Who is the father of crowdfunding? ›

Wharton and Oxford-educated, Alexander Blass is known as the father of crowdfunding™.

Is Kickstarter still popular? ›

The most popular categories

As of July 2022, more than 30 million people have pledged their monetary support towards Kickstarter projects. This includes a total of 7.86 million people who backed more than one project on the crowdfunding site, making them so-called repeat backers.

What is the largest equity crowdfunding platform in the world? ›

List of highest-funded equity crowdfunding projects
RankProjectPlatform
1BrewDogProprietary/Crowdcube
2CoinMetroCoinMetro
3Paradox InteractivePepins
4CrowdcubeCrowdcube
44 more rows

What is the failure rate of crowdfunding? ›

Do you know how many crowdfunding campaigns fail? Out of all the crowdfunding platforms out there, the average rate of success for campaigns is only about 22%. That means nearly 80% of crowdfunding ventures fail to raise their desired capital.

How many crowdfunding campaigns are successful? ›

22.4% is the average success rate of crowdfunding campaigns. Overall crowdfunding projects have an average of 47 backers. Fully funded crowdfunding projects have an average of 300 backers. The average pledge for fully funded projects is $96.

What percentage do crowdfunding sites take? ›

A platform fee is when a crowdfunding site takes a percentage of all the money you raise through your fundraiser. Typically, crowdfunding platform fees range from 5% to 12%. Look out for punitive fee structures. Some platforms increase fees if you don't meet your goal.

Is there a better website than GoFundMe? ›

BetterWorld. BetterWorld tops the list of GoFundMe alternatives for several reasons. The first reason is its flexibility. In addition to hosting a crowdfunding campaign, you can also do a variety of other fundraisers, including online auctions, giveaways, peer-to-peer fundraising events, and monthly giving arrangements ...

What is the downside of GoFundMe? ›

The main downside of GoFundMe is that it is an all-or-nothing platform. This means that if you do not reach your fundraising goal, you will not receive any of the money that you have raised. This can be a big risk for startups as they may not be able to raise enough money to reach their goals.

Which fundraising platform is best? ›

Best Donation Platforms for Nonprofits
ProductBest for
GoFundMeCrowdfunding
ThankViewVideo fundraising
PledgeItPeer-to-peer fundraising
MailchimpEmail fundraising
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Mar 17, 2024

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