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Step Outside Of Your Comfort Zone and Crowdfund To Raise Capital
- Cynthia Nevels
- Dec 3, 2024
- 3 min read
Top U.S. Based Crowdfunding Platforms That Are Still Active
In today's competitive landscape, small business owners are continually seeking innovative ways to secure funding for their ventures. One increasingly popular option is crowdfunding, which enables entrepreneurs to raise capital by pooling small contributions from a large number of people, often through online platforms. This approach provides access to vital funds and offers the chance to build a community of supporters and test market interest in your product or service. Whether you're launching a new startup, expanding an existing business, or looking to finance a creative project, understanding the ins and outs of crowdfunding can be a game-changer. In this blog, we'll explore the top crowdfunding platforms available in the U.S. and offer insights on how they can empower you to fulfill your business goals.
Find our comprehensive overview of the top 7 active U.S.-based crowdfunding platforms:
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1. Kickstarter
- Primary Audience: Creative projects, technology, design, games, arts
- Platform Size: Over $7 billion pledged since launch, 22+ million total backers
- Success Rate: Approximately 40% of projects get fully funded
- Key Rules:
* All-or-nothing funding model
* Must achieve funding goal to receive money
* Project must create something to share
* No charity/personal fundraising
* Must be 18+ and in eligible country
* 5% platform fee plus 3-5% payment processing
2. Indiegogo
- Primary Audience: Technology, innovation, creative works
- Platform Size: Over $1.5 billion raised, active in 235+ countries
- Success Rate: About 17-18% reach their goal
- Key Rules:
* Fixed and flexible funding options
* Must be 18+ to create campaign
* 5% platform fee
* 2.9% + $0.30 processing fee
* No prohibited items/hate content
3. GoFundMe
- Primary Audience: Personal causes, emergencies, medical expenses
- Platform Size: Over $17 billion raised since launch
- Success Rate: Estimated 30%
- Key Rules:
* No platform fee in U.S. (only processing fees)
* Keep donations regardless of goal
* Must be 18+ or have guardian consent
* Valid bank account required
4. SeedInvest
- Primary Audience: Startup investors, equity funding seekers
- Platform Size: Over $375 million invested
- Success Rate: Under 2% of startups accepted
- Key Rules:
* Equity crowdfunding platform
* Rigorous company vetting
* $500-$1000 minimum investment
* Accredited investor requirements
* 7.5% fee plus equity stake
5. Wefunder
- Primary Audience: Startups, small businesses
- Platform Size: Over $500 million raised
- Success Rate: About 75% success rate
- Key Rules:
* Equity and debt crowdfunding
* $100 typical minimum investment
* 7.5% platform fee
* SEC compliance required
6. StartEngine
- Primary Audience: Growth companies, retail investors
- Platform Size: Over $400 million raised
- Success Rate: Approximately 95% for selected companies
- Key Rules:
* Equity crowdfunding focus
* $100 minimum investment
* 7-12% success fee
* Strict compliance requirements
* Regular reporting required
7. Republic
- Primary Audience: Tech startups, real estate, crypto projects
- Platform Size: Over $250 million raised
- Success Rate: About 95% for accepted projects
- Key Rules:
* $100 minimum investment
* 6% platform fee
* Due diligence required
* Investment limits based on income
* Regular updates required
When considering crowdfunding portals, understanding the importance of key elements such as frequently updated statistics and metrics is crucial for assessing potential success and making informed decisions. Variability in rules and fees by location and campaign type can significantly impact both project creators and backers, making it essential to familiarize oneself with each platform's specific guidelines and prohibited content. Carefully reviewing the terms of service protects stakeholders from unexpected complications, while due diligence ensures that all parties are aware of their responsibilities and the inherent risks involved. Additionally, recognizing that success rates may differ across categories helps set realistic expectations. Some platforms may also require extra verification or licensing, which could affect the campaign's launch timeline. Finally, being aware of separate payment processing fees is vital for budgeting and understanding the total costs associated with crowdfunding efforts.
Important Considerations:
Statistics and metrics updated frequently
Rules and fees may vary by location/campaign type
Each platform has specific prohibited content
Terms of service should be reviewed carefully
Due diligence is essential for creators and backers
Success rates may vary by category and campaign type
Some platforms require additional verification or licensing
Payment processing fees are often separate from platform fees
These platforms continue to evolve with new features and requirements.
When selecting a platform, consider your specific project needs, target audience, and funding goals. Need help? Integrality, a pioneer in the industry, provides crowdfunding consulting services in Dallas, Texas. Book an appointment.
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