So you’re an entrepreneur, a startup, an inventor, a manufacturer, or all of the above that needs money for a new venture. Where are you going to turn to raise the money that you need to bring your idea to life? The answer is most likely crowdfunding. Everyone loves innovation and new products, so luckily, there are several websites where you can start a campaign to raise funds for your new product idea or business via strangers from the Internet. I will be discussing the pros and cons of each of the top three most popular crowdfunding websites, as well as which are the best for which types of products and industries.
Kickstarter
Kickstarter is probably the most popular of the crowdfunding websites, as it has been around since early 2009. It claims the title of the world’s largest funding platform for creative projects, where “11 million people have backed a project, $2.5 Billion has been pledged, and 109,168 projects have been successfully funded,” all according to their website. Kickstarter is great for creative projects anything involving music, film, art, gaming, etc. So if you have a product that
falls into one of those categories, I would suggest going with Kickstarter. However, one downside to Kickstarter is that they only accept product creators from the U.S., Canada, and the U.K. Also, you have to go through an approval process. Once you get approved, if you do not meet your posted goal of X amount of money by X amount of days, you will not get to keep any of the money definitely something huge to think about.
Crowdfunder
Founded in 2011, Crowdfunder joins investors and entrepreneurs, making it huge for businesses. It is a great place for businesses to network and gain access to a spread of investors, unlike other crowdfunding websites. However, Crowdfunder is not the place for nonprofits. Your business cannot participate unless it is for profit. Go with Crowdfunder if you
are a for profit startup you will find the financial and professional guidance that you need.
Indiegogo
Self described as “a launchpad for creative and entrepreneurial ideas of every shape and size,” Indiegogo is great because of the flexibility it offers, making it super popular. Indiegogo is now well known for financing cause related campaigns and is also a great place for nonprofits, unlike Crowdfunder. It also accepts literally anyone and anything from anywhere, unlike Kickstarter. However, a con of Indiegogo is that you will be charged with a 9% fee if you do not meet your fundraising goal, which is way higher than anywhere else. If you have a great product that you are confident others will find great and help back, go with Indiegogo.
This blog post was written by Stephanie Trudell, our Brand Ambassador Intern here at Retailbound. You can reach Stephanie at [email protected].
