Crowd Funding…one of the most exciting new concepts for business and cause funding…can be a real boon to entrepreneurs, startups, creatives and not-for-profits.
If you read my last article, you saw that there are is a long list of options for pursuing Crowd Funding; and today I want to review a few of the top Crowd Funding sites that are well worth looking into.
Kickstarter was founded in 2008. In 2012 alone, they are on the path to raising at least $300 million. Kickstarter’s funding focus is on creative projects, so it is not the place to look if you want to promote a charity or what is called a “fund-my-life” project. In order to get approved on Kickstarter, one must:
- Be a U.S. resident
- Be 18 years of age or older
- Have a U.S. bank account
- Have a driver’s license
- Have a credit card
Other important details regarding Kickstarter are:
- All or Nothing (AoN) – You must meet your goal or you get nothing
- Fees are 5% if you meet your goal; no fee if your goal is not met
- Monies collected go through Amazon Payments, which charges a 3-5% processing fee
- If you are an investor, you are not guaranteed that the project will be completed or that the money will even be used to implement it.
The “birth” of IndieGogo actually took place at the Sundance Film Festival in the same year as Kickstarter…2008. This site has been responsible for generating more than 100,000 campaigns covering everything from films to small businesses. Most of its campaigns are for-profit projects. IndieGogo is available worldwide to anyone with a specific dream or idea.
Further details about IndieGogo include:
- It offers effective integration into social media and websites
- Your progress can be tracked with its excellent analytics tools
- No guarantees that goals will be met
- Two funding plans –
- Flexible – 4% if goal is met/9% if goal is not met; Keep it All plan (KiA)
- Fixed – 4% if goal is met/no fees if goal is not met; All or Nothing (AoN) plan with contributors donations returned if goal isn’t met
This is a very new site, originating in January of this year. Although it will help fund any kind of project, a heavy emphasis thus far has been on artistic campaigns. RocketHub also has a couple of “perks” for its fundraisers:
- Badges that can be earned through voting to gain further exposure
- “LaunchPad Opportunities” – where fundraisers can be awarded extra resources depending on their campaigns’ popularity and expert evaluations
In addition, campaign details are:
- Keep it All (KiA) – no fees for submitting projects and then 4% of the amount funded
- LaunchPad Opportunities – free for successful campaigns or $5 for anyone else
One appeal of this site for those who choose to donate is that they can participate in a profit sharing benefit for a pre-determined amount of time. With 33needs, the main focus is on social entrepreneurs and business startups that must first go through an application process in order to run a campaign.
When an application is accepted, the details for campaigns are:
- 5% fees for successfully funded campaigns, in addition to transaction fees.
- All or Nothing (AoN) – your financial goal needs to be reached within a specific time frame, otherwise contributors’ debit or credit cards are not charged.
This funding site targets personal/private campaigns within groups of people who already know one another. This option enables friends to join together and raise money for a shared goal, such as a vacation trip or community project.
If you use Crowdtilt, the details are:
- Fees of 2.5% if your campaign is successful and a 2.5% credit card processing fee
- Whether the goal is met or not, you get to keep any funds that are collected.
Now that we have gotten familiar with Money for Goods Crowd Funding and sites, my next blog post will move on to HyperFunding…Loan to Equity (LtE)…details and pertinent sites. If, after reviewing my last couple articles you haven’t found what fits your particular business funding needs, maybe HyperFunding will be the answer.