Crowdfunding is a method that allows businesses to gather sufficient funding needed to implement their business idea successfully. The video shows 7 best Crowdfunding sites to help you choose the best one for your business.

What is crowdfunding?

Crowdfunding is the practice of raising funds for a project or cause from a large number of people, typically via the Internet.

Crowdfunding helps individuals or small businesses get early-stage support for their ideas.

When you’re looking for crowdfunding site to fund-raise, you should check the fees.

Many platforms take processing fees from each contributing transaction along with a small percentage of your overall earnings.

While some sites give you the money only if you reach your intended goal.

Let’s look at some of the best crowdfunding sites for 2020.

1: Kickstarter

Kickstarter is known for helping tech and creative entrepreneurs fund their projects before they are able to get a loan or raise funds.

The company has raised over $4 billion with more than 155,000 projects funded since 2009.

Kickstarter is an all or nothing platform, which means that you don’t get your funds unless you meet your campaign goal.

Kickstarter pricing:

The fee is 5% on top of processing payment charges (3 – 5%) per transaction. If you raise enough money, there is a 14-day waiting period for funds.

2: Indiegogo

Indiegogo users are usually creating campaigns for tech innovations, creative works, and community projects.

Indiegogo users choose between two options: fixed (for fundraisers) and flexible funding (for campaigns).

With flexible funding, you will get your funds whether or not you meet your goal; with fixed funding, all funds need to be returned if you do not meet the campaign goal.

Indiegogo Pricing:

There are no fix funding fees for campaigners who do not meet their goal and a 5% fee for flexible funds and fixed funds that do meet their goals.

There’s also processing fee of 3% and 30 cents per transaction. The minimum goal for either type of fundraiser is $500.

3: Causes

Causes is the world’s largest online campaigning platform focused on social, political, and cultural issues.

The site is great for nonprofits that want to build a donor community without spending too much money and resources on networking.

Causes pricing:

As it runs ads, Causes is free of charge for the users.

4: Patreon

Patreon is a membership platform based in the US that provides business tools for creators to run a subscription content service.

It allows creators an artists to earn a monthly income by providing exclusive rewards and perks to their subscribers, or “patrons”.

Patreon pricing:

Patreon collects a 2.9% fee and 35 cents from each pledge.

5: GoFundMe

GoFundMe is a non-profit, crowdfunding platform that allows people to raise money for charitable causes and emergencies.

GoFundMe has had many successful campaigns, including the Las Vegas Victims Fund ($11.8 million) and the Time’s Up Legal Defense Fund ($22 million).

GoFundMe Pricing:

The crowdfunding site collects a 2.9% processing fee and 30 cents for every donation.

6: CircleUp

CircleUp is best for entrepreneurs who are looking to scale as opposed to develop their ideas.

CircleUp has helped raise $260 million dollars for 196 startups. It provides a platform to network with experts, retailers, and entrepreneurs.

Selection Process:

The selection process is fairly competitive, and also requires revenue worth $1 million to be listed on their site.

7: Lending Club

Lending Club provides up to $40,000 for personal loans and up to $300,000 for business loans.

Requirements:

Lending Club requires at least one year in business, $50,000 in annual sales, no recent bankruptcies or tax liens, and ownership of at least 20% of the business.

Our Process:

Clear House Accountants specialise in providing accounting support to startups and small businesses to help them sort their finances and get past every stage of business growth successfully.

Speak to us:

Call: +44 (0)207 117 2639

Email: info@chacc.co.uk

The world no longer recognises traditional accountancy firms, there is now a need for analytical business partners. At Clear House Accountants, we recognise this and have positioned ourselves as a digital accountancy practice that sparks creativity and growth by infusing futuristic, adaptive and technologically advanced solutions. We take pride in going above and beyond when assisting our clients through different stages of the economic and business cycle. As a renowned award-winning accountancy service providing firm in the United Kingdom, we at Clear House, help build collaborative ecosystems around the businesses we work with.