Best Crowdfunding Sites
What are the best crowdfunding sites available to investors and entrepreneurs? This is not the easiest question to answer, as the best crowdfunding websites for your project, purpose, or investment goal may differ from that of someone else. On this page we help you choose the best crowdfunding website for you, the best fit for your goals.
Best Crowdfunding Websites for Investors
- The best crowdfunding websites for investors are those that have a lot of choices that differ in risk, background, length of time, and types of rewards.
- For some investors, ,the best crowdfunding websites are those that offer both equity and rewards-based opportunities though some who know which kind they want to invest in may not be that concerned with the choice.
- The best crowdfunding sites for investors carefully screen the pitches so that the ones that the investor can choose from all have potential.
- The best crowdfunding websites for investors have excellent customer service, including the ability to follow up should an entrepreneur seemingly not be living up to promises made.
- Finally, the best crowdfunding websites have shown that both entrepreneurs and investors have been successful – the best of each side of the equation have chosen that site.
Best Crowdfunding Sites for Entrepreneurs
The best crowdfunding sites for entrepreneurs naturally mirror the best crowdfunding websites for investors. After all, entrepreneurs want to go where the investors go! That said, there are some specific aspects of the potential platforms that you may want to look for.
2. The best crowdfunding sites for entrepreneurs have narrowed the number of proposals that make it. This may seem counter intuitive since you want the bast chance of being chosen, but at the same time if you have a high quality pitch you want the number of other competing for investors to be limited.
3. The best crowdfunding websites for entrepreneurs have excellent customer service that ranges from helping with technical glitches to giving tips about how to attract funding.
4. Finally, the best crowdfunding sites for investors have done a great job with search engine optimization so they attract a lot of investors by having a prominent place in search results.
Choosing the Best Crowdfunding Websites
There are other more specific reasons why you would choose a specific site, and breaking up the two major types of site is a good way to explore that.
Best Crowdfunding Sites: Rewards Based
How do you choose the best crowdfunding sites for rewards-based pitches? This may not be easy since there are many websites available and the best crowdfunding sites for you may depend on your unique goals and your pitch or investment interest. That said, there are three things you can look for when trying to find the best crowdfunding sites for rewards-based pitches:
- Variety of rewards is an important factor if you are an investor because you may not even realize all of the possibilities. Even if you do you will want those making the pitches to have to outdo the others. For entrepreneurs a variety of rewards allows you to directly compete with others in your niche.
- Excellent site layout and available use of multimedia is also important when it comes to choosing the best crowdfunding websites for rewards. For entrepreneurs this allows you to really show off your product, talent, or purpose, and this also helps investors make an informed choice.
- Easy site navigation is also important when it comes to rewards-based pitches since unlike equity pitches there is no easy direct comparison. You need to be able to easily explore all of your options.
Of course there may be specific factors you are looking for depending on your unique pitch if you are an entrepreneur, or your preferences of you are an investor.
Best Crowdfunding Sites: Charitable and Arts
We put charitable and arts sites together since they share the fact that often there is no financial payback from those who are funded. Instead there is either inside information and perks, or just the knowledge that a favorite project or purpose was funded that is the result. These choices are increasingly popular with investors looking to get a closer look at where they are giving their charitable money, and those who enjoy the arts and want to be more of an insider of a hot project. It can be quite rewarding to invest in this way, with benefits on both sides of the equation.
There are actually several sub categories within the crowdfunding platforms in this category. First there are pure charity funding platforms which involve absolutely no pay back promise, nor do they come with any major perks since the funders expect that the majority of the time and effort be put into the charitable purpose. Then there are the arts-based sites where no pay back is necessary but the crowd does expect some sort of insider perks from something as simple as tickets to shows to something as complicated as knowing all news first. And finally there are arts-based sites where some light payback is required, such as money from any sales of either the artwork itself or some percentage of the gate for performing arts.
Best Crowdfunding Websites: Equity
These agreements, where investors get a piece of the company’s value going forward, are becoming more common right now. The site “Fundable” may be the biggest example so far of an equity crowdfunding platforms. If you’ve watched the TV show “Shark Tank” you’ve likely learned a lot about how an investor might view equity crowdfunding platforms and of course also how the person or people receiving the money might push back on any offer. While this type of peer-to-peer lending is popular, it can be very hard to arrive at an appropriate percentage, though many of these sites have the business person make that choice up front, asking for a certain amount of total funding for a certain amount of equity.
Equity crowdfunding platforms are used to fund a new or expanded product or service line that will have a measurable improvement given the funding. A business plan must be able to show what the goal or target increase will be, and the investors get either a percentage of just the increase or perhaps a percentage of the entire product or service.
Best Crowdfunding Sites: Niche
What about the best crowdfunding sites for specific purposes? You may have a niche request and turning to one of the best crowdfunding websites for that niche may help narrow the type of investor to those who want to invest, and for investors it leads to many fewer proposals to have to wade through. What are some examples of this type of site? Here are three:
Best crowdfunding sites for schools
These websites are designed to help schools raise money. They are related to charitable fundraising sites and are often used for a specific group to donate to a school purpose, usually parents of those attending the school. That said, some of the best crowdfunding sites for schools are also designed to attract more general philanthropy.
Best crowdfunding sites for writers
Another niche area involves writers collecting funding for their next literary work. Writers who are just starting out or have yet to attract contracts may turn to the crowd to help them get their start. The best crowdfunding sites for writers allow investors to help these writers and often these investors get new chapters of other inside information before others.
Best crowdfunding websites for nonprofits
Another niche related to charitable fundraising involves nonprofit companies turning to the crowd to get funding for start-up, expansion, or continued operations. In this case investors are often not looking for a payback, but are rather supporting the mission of the nonprofit. The best crowdfunding websites for nonprofits offer a lot of choices to investors while attracting a lot of investors so that the companies have a good chance for success.
Best Crowdfunding Sites Overview
To summarize everything on this page about the best crowdfunding sites we come to the following conclusions:
- The best crowdfunding sites have a lot of options but have also narrowed the choices so this variety of options is high quality.
- The best crowdfunding sites have excellent site layout and navigation so that you can easily find the pitch that is a match (or easily be seen if you are an entrepreneur).
- The best crowdfunding websites have good customer service and follow up for both investors and entrepreneurs.
- The best crowdfunding sites allow for multimedia and other ways to ensure that your pitch can really be seen and understood.
Please feel free to use our comments section to relate your own experiences with what you would call the best crowdfunding sites. We will also continue to update our information and advice about choosing the best crowdfunding websites for your purpose.