What Is Crowdfunding? The Best Crowdfunding Websites

Crowdfunding is a great and innovative way to acquire some financing, if another conventional way of fundraising like loans, equity financing, venture capital are not available, or not suitable.

What Is It

Imagine that you have a great business idea, you truly believe in. But no bank or institution wants to finance your venture, because of the lack of business experience, your project is too risky, you can’t secure the loan or whatever else. What should you do? Your idea is really good, and to leave it would be the worst decision! Well, you can try crowdfunding… This is exactly how Jessica Mae Stover financed her movie. She wanted to produce a sci-fi film called “Artemis Eternal”, but didn’t have the money for this. So she offered parts of the project to the broad public. Everyone from around the world was able to participate in the venture and get a part of the profits in exchange for a small donation, starting from $1 to $100. This is how Jessica managed to get a big part of the needed $150 000 for her production. Here is her site, the site of the WINGMEN-  http://artemiseternal.com/, where you can participate in some of her new projects, financed by crowdfunding.

What Is Crowdfunding

What Is Crowdfunding, pic: scx.hu

Crowdfunding was the option chosen by the producers of “The Cosmonaut”, movie. In less than a week, they managed to collect more than 130 000 British pounds and save the project.

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This is what Andy White did, too in 1999! He wanted to create a trade association for freelancers in the UK. He needed 100 000 pounds, so he announced that 2000 people would be able to get a share in the project for 50 pounds. Just 5 days later, he managed to collect? 100 100  and start “The Professional Contractors Group”.

Types

Generally, there are two major types of crowdfunding  – donation based and equity-based.

The donation-based form of it, the supporter give money to an idea they like, without expecting anything in exchange. This is the more popular form of crowdfunding and it is not actually different from a donation.

The second type (equity based) is a form of investing, in which the supporter/investor actually buys a stake in the company with her money. It is less spread, because of some law limitations and the fact that the donation here is usually larger than a dollar or two. This type is just like buying shares from a company, the difference here is that these shares are not regulated by a financial institution, nor they are traded on a stock exchange.

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The Best 5 Crowdfunding Websites Follow

Where to get crowdfunded? Well, there are many options – you can make your own website, where to promote your project. You can also use some of the big forum websites, where you can start a thread and find followers. The easiest way to get crowdfunded might be to publish your project in one of the specialized crowdfunding sites.

Here are some of the best crowdfunding platforms: http://businessideaslab.com/top-crowdfunding-sites/ On most of them you can register and try to raise some money, by submitting your ideas for free.

Here are some of the top crowdfunding websites:

Kickstarter – the biggest crowdfunding platform in the world. This is a nice place for entrepreneurs, musicians, artists and startups from all around the globe to raise money for their projects. The site has a professional and reliable platform. Since 2009, the site has provided more than $2.1 billion to nearly 100 000 different projects.

indiegogo.com/ – another great place for raising start-up capital for new ventures. Here you can get financing for whatever project you may have, it doesn’t have to be a business or money related. You may finance your great cause or anything else.

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peerbackers.com – The next generation of capital solutions for startups and entrepreneurs. So if you have a good idea, don’t miss checking out them, too.

rockethub.com – one of the leading crowdfunding websites out there. If you have an innovative project, this might be the place for you to get financed. The site has helped thousands of scientists, entrepreneurs, and artist to get where they belong…

fundingcircle.com – This is the ultimate lending platform for small businesses. They provide small business loans of up to $500 000 to any perspective startup or idea.

These are the best crowdfunding platforms for 2016. If you know some more, please don’t hesitate to drop them as comments below. Also, don’t forget to share this article and spread it on some social sites, too.