RANKING & REVIEWS
BEST CROWDFUNDING SITES
Intro: Finding the Best Crowdfunding Sites
Crowdfunding sites are rapidly becoming the go-to method to invest, donate, and raise money online.
Those numbers have continued to grow, with over 2,000 crowdfunding sites documented in 2016.
With so much competition, how can you identify the best crowdfunding site? Even more importantly, how do you know which crowdfunding website best fits your financial and personal goals?
In this review, we’ll look at some of the most successful crowdfunding sites to help you identify the best crowdfunding website for your needs.
We’ll also look at the definition of crowdfunding across a variety of different styles to help you better understand what crowdfunding is and how you might benefit from using the best crowdfunding sites.
Award Emblem: Top 5 Best Crowdfunding Sites
AdvisoryHQ’s List of the Top 5 Best Crowdfunding Sites
The list is sorted alphabetically (click any of the website names below to go directly to the detailed review section for that crowdfunding website).
Top 5 Best Crowdfunding Sites | Brief Comparison & Ranking
Best Crowdfunding Websites | Minimum Contribution | Platform Fees | Type of Crowdfunding |
| CircleUp | Varies by company | Percentage based on total amount raised | Equity |
| GoFundMe | $5 | 5 percent on all donations | Donation |
| Indiegogo | $100 | 5 percent on all funds raised | Rewards, Equity |
| Kickstarter | Varies by project | 5 percent on all funds raised | Rewards |
| Patreon | Varies by project | 5 percent on all pledges | Rewards |
Table: Top 5 Best Crowdfunding Websites | Above list is sorted alphabetically
Different Types of Crowdfunding Websites
According to Investopedia, the basic definition of crowdfunding is “the use of small amounts of capital from a large number of individuals to finance a new business venture.”
From this definition of crowdfunding, there are three different types of crowdfunding sites: rewards-based, donation-based, and equity-based.
Rewards-Based Crowdfunding Sites
Rewards-based crowdfunding sites are perhaps the most popular crowdfunding websites, with each campaign offering some sort of reward in exchange for financial support.
Creative art projects, musicians, or designers putting together an innovative product are all likely to use a rewards-based crowdfunding website.
For example, let’s say an artist has a great idea for a new series of canvas paintings—but to make that project come to life, they need to pay for materials like paint, canvas, and brushes. They might even use crowdfunding sites to help pay for living expenses while they work on their project.
With these best crowdfunding websites, contributors that help raise money online could receive a canvas painting or a print at the end of the project as a “thank-you” for their support.
Many of these best crowdfunding sites use different tiers of support, assigning increased rewards for larger contributions.
Donation-Based Crowdfunding Sites
A donation-based crowdfunding website is a unique way to raise money online, since participants do not expect to receive anything in return.
Rather, contributions are sought primarily through a desire to support, help, or encourage the goal of a specific campaign, meaning that these crowdfunding sites are often associated with personal or charitable goals.
For example, donation-based crowdfunding websites can be particularly useful to raise money online for natural disasters, medical procedures, funeral costs, and so on.
Equity-Based Crowdfunding Sites
Equity-based crowdfunding websites are less common, but they can have the most significant financial impact on those that help raise money online.
Instead of donating money or expecting a tangible product in return, these best crowdfunding websites facilitate investments in private companies, offering investors a stake in the company itself.
While these crowdfunding sites have higher investment requirements, they offer the unique opportunity for individuals to have a small part in online venture capitalism.
Most equity-based crowdfunding sites provide ground-floor access to startup companies, but some even allow for investments in real estate, like Crowdstreet.
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AdvisoryHQ’s Selection Methodology
What methodology does AdvisoryHQ use in selecting and finalizing the credit cards, financial products, firms, services, and products that are ranked on its various top-rated lists?
Please click here “AdvisoryHQ’s Ranking Methodologies” for a detailed review of AdvisoryHQ’s selection methodologies for ranking top-rated credit cards, financial accounts, firms, products, and services.
Detailed Review – Top Ranking Best Crowdfunding Sites
Below, please find a detailed review of each crowdfunding website on our list of best crowdfunding sites. We have highlighted some of the factors that allowed these best crowdfunding websites to score so high in our selection ranking.
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CircleUp Review
For investors that want exposure to innovative new brands, CircleUp is one of the best crowdfunding sites to consider.
This crowdfunding website highlights an important gap in helping small companies succeed—many are too small to catch attention from private equity firms, but often struggle with getting traditional bank loans.
With over $300 million invested since 2012, this best crowdfunding site offers investors access to innovative new brands in Food, Beverage, Personal Care, Household Products, Pets, Apparel, and more.
Part of what makes CircleUp one of the best crowdfunding sites is their commitment to creating an investing platform defined by efficiency and confidence.
Any brand listed on this crowdfunding website has been thoroughly vetted and analyzed with advanced data analysis to determine “breakthrough success” probability.
This means collecting data from over 1.2 million consumer product and retail companies and identifying over 90,000 data points of analysis to evaluate each company by the strength of their distribution, brand, and management team.
According to their FAQ section, CircleUp companies tend to have over $1 million in annual revenue, and already have a tangible product or retail outlet where investors can access the brand.
This makes CircleUp one of the best crowdfunding websites for online investors that want to support thoroughly-vetted brands with an early record of success.
One example of a successful CircleUp company is Supergoop!, an innovative cosmetics brand providing year-round sun protection. Today, Supergoop! can be found on shelves in Sephora, Nordstrom, Anthropologie, Birchbox, and more.
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GoFundMe Review
GoFundMe is certainly one of the best-known crowdfunding websites, making it easy for anyone to raise money online. With over $3 billion raised to date, GoFundMe is a global marketplace to receive and give donations.
There are nearly 20 campaign categories to choose from, making GoFundMe one of the best crowdfunding sites for individuals looking to raise money online for personal, charitable, or business-related reasons.
This fundraising website is also a great place to learn the basics of how to raise money online. The Fundraiser Toolkit provides a wealth of tips to teach users how to create eye-catching titles, campaign descriptions, and ways to promote both on and off social media.
There are also a few additional perks to using this best crowdfunding site, including:
- No deadlines or goal requirements
- No penalties for missing a goal
- GoFundMe mobile apps
- Ability to create a beneficiary for donations
- Ability to send donations directly to an authorized charity
As a donation-based crowdfunding site, however, donors do not automatically receive anything in return, like a share in a company or a finished product.
Still, with its ease of use and social media integration, GoFundMe is one of the best crowdfunding websites to support a wide range of meaningful causes.
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IndieGoGo Review
As one of the best crowdfunding sites, IndieGoGo seeks to redefine what it means to be an entrepreneur, providing a forum for every creator to have a shot at greatness.
IndieGoGo campaigns can be found in 223 countries across the globe, and with 15 million monthly visitors, it’s safe to say that this best crowdfunding site is here to stay.
As one of the best crowdfunding websites, IndieGoGo has an impressive array of categories, including everything from Health & Fitness to Music and Human Rights. A few other categories include:
- Energy & Green Tech
- Transportation
- Art
- Photography
- Culture
- Animal Rights
IndieGoGo is primarily a rewards-based crowdfunding website, which means that financial contributions are not only a show of support, but they also represent some sort of purchase.
For example, one trending IndieGoGo campaign advertises heels and flats with intuitive sneaker-comfort design, with each purchase going directly towards manufacturing costs. Supporters receive their own heels or flats at a discounted rate.
Uniquely, IndieGoGo also offers the ability to invest in startups through First Democracy VC, allowing for equity-based crowdfunding as well as rewards-based crowdfunding.
This makes IndieGoGo one of the best crowdfunding sites in terms of versatility. Users can easily choose the crowdfunding system that aligns with their personal needs and financial goals.
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Kickstarter Review
Kickstarter is a self-described “enormous global community built around creativity and creative projects.”
As one of the best crowdfunding websites, Kickstarter has helped thousands of artists, musicians, filmmakers, and designers raise money online to fuel their creative projects.
As with many of the best crowdfunding sites, Kickstarter offers a wide range of categories, including a few of their own making. Their intuitive online database provides categorization for “Projects We Love,” “Nearly Funded,” and “Just Launched” to increase visibility.
In 2015, Kickstarter became a Benefit Corporation, meaning that the company is under an obligation to consider their social impact before making any corporate decision. As a result, Kickstarter:
- Is committed to bringing creative projects to life
- Will reflect their values in day-to-day operations
- Supports a more creative and equitable world
- Is committed to fighting inequality
- Will provide public statements to annually review the results of these efforts
With clearly-stated values and a focus on transparency, Kickstarter is one of the best crowdfunding sites in terms of ethical and trustworthy operation.
Funding on Kickstarter uses an all-or-nothing approach to reduce risk for creators and their backers. If a project goal is not met, funds are returned. For Kickstarter members, this reduces risk and ensures that projects are truly set up for success.
There’s a lot to be said about Kickstarter’s approach to crowdfunding. There have been multiple Oscar nominations for films funded through this crowdfunding site.
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Patreon Review
Patreon represents a unique take on a crowdfunding site—participants (or patrons) can choose to support artists through a monthly membership subscription.
Signing up with Patreon is like putting spare change into a tip jar. It’s a direct contribution to acknowledge that you appreciate their work, and you’d like to help them continue to do so.
As a reward-based crowdfunding site, each subscription level has a different price and set reward, all created by individual artists or companies.
For example, journalism and story-telling publication Narratively is currently raising funds to start a podcast, with levels like:
- $1-$2 a month just to support Narratively
- $5 a month for members-only access to a newsletter, first access to new projects, storytelling tips and videos, and more
- $10 a month for everything above, a print copy of a limited-edition zine, and a signature tote or t-shirt
Creators can have multiple goals, which means that Patreon accounts can continue to evolve and change with the needs of the business.
Another nice thing about Patreon is that the crowdfunding site is largely modeled after social media. Each artist has their own unique page with the ability to make public posts, share videos, and interact with their community of patrons.
This makes Patreon the best crowdfunding site for users that value interaction and the opportunity to make a connection with the creators they support.
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Conclusion: Choosing the Best Crowdfunding Site
Whether you are an artist looking to raise money online for your next endeavor, or if you’re looking for the opportunity to support an entrepreneur, it’s important to find the best crowdfunding site for you.
Each of these best crowdfunding websites have their own unique requirements, fees, and type of crowdfunding, which can make finding the best crowdfunding sites tricky.
If you can’t decide which of these best crowdfunding sites are right for you, it may help to re-evaluate whether you prefer an investment, donation, or rewards-based crowdfunding site.
Once you understand what type of crowdfunding site you need, you’ll be better equipped to select the best way for you to donate, invest, or raise money online.
Image sources:
- https://pixabay.com/en/money-donation-donate-profit-give-652560/
- https://www.gofundme.com/
- https://www.patreon.com/
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