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8 Crowdfunding Websites That Will Help You Raise Funds!

article Crowdfunding

8 Crowdfunding Websites That Will Help You Raise Funds! Posted by Matthew Toren, on February 3rd, 2011 http://www.youngentrepreneur.com

While money doesn’t seem to grow on trees (yet), it’s easier today for the little company to get the funding they need to turn a dream into reality. With crowdfunding sites, you can begin to find investors who are interested in sending money to you to support your project. Whether you want to begin a new company or get a movie into a film festival, crowdfunding is a way to reach out to the larger community, to a community that wants to see the underdog win the race toward success. MicroVentures

Also described as peer-to-peer lending, MicroVentures works with investors as well as with those who need money to get a certain project off the ground. According to their website, MicroVentures works with small companies and businesses in variety of areas:

• • • • • • • • • • • • • • • • • •

Biotechnology Business Products and Services Computers and Peripherals Consumer Products and Services Education Environment Electronics Financial Services Healthcare Services Internet Technology IT Services Media and Entertainment Medical Devices and Equipment Other Retail/Distribution Semiconductors Software Telecommunications

These companies pay $100 to MicroVentures and then send their business plan to the site for approval. Once approved, this idea will be posted on the website for serious investors to consider. Kickstarter

Kickstarter is a crowdfunding site that is getting a lot of attention these days. With creative people

posting new projects that need funding every day, this site is a place where the bohemian idea can turn into a viable possibility. The process is simple and a person can setup their Kickstarter project in just a few hours. A person posts their project details and creates a funding goal. During a certain period of time, investors and individuals are able to contribute so that the project meets or exceeds that goal. The project will only get the funding if the goal is met. When the project creator reaches their goal, Kickstarter takes 5% of the monies for their service.

ky

If you’re a designer who needs to have financial support, Quirky is a crowdfunding site that supports your creative and inventive needs. The most valuable part of Quirky is the feedback you can receive for your project idea. For a $10 fee, you can post your idea and then see what others think about it. This allows you to create a product or service that is going to meet your market needs, increasing your chances of success. Once you have received feedback, then Quirky will decide whether or not they want to make the product. If they do, then you get paid. With the community vibe, Quirky is more of a progressive site than a straightforward investment site. RocketHub

At RocketHub, you will find there are two audiences this crowdfunding site helps: Fuelers and Creatives. Fuelers are the ones who invest in the projects that the Creatives post. Unlike Kickstarter, there is more interaction on the RocketHub site, with plenty of resources for those who want to refine their idea before or after they post it on the site. Users can earn rewards or badges on the site in order to promote each other. On RocketHub, there is a flat rate of 8% for Creatives who receive investments from Fuelers. Pozible

When you look at Pozible, you will notice this is another crowdfunding site that offers many of the same tools as other sites already listed. What users will want to keep in mind is that local projects that are not based in Australia may not be as well received on this Australian website. Like other sites, companies and individuals will post their projects on the site and then investors will decide whether to invest in the projects or not. Fees for using Pozible include 2.4% for PayPal transactions, 5% for invitees, and 7.5% for everyday users. IndieGogo

With IndieGogo, you’ll find a creative crowdfunding site that’s interested in everything from performing arts to gaming ideas. Since one of the partnerships with IndieGogo is MTV, this is a valuable resource for those who want to break into the music and entertainment industry, but need the funding to get started with their unique idea. IndieGoGo offers anyone with an idea – creative, cause-related, or entrepreneurial – the tools to effectively build a campaign and raise money. What sets IndieGogo apart is its use of pre-sales and rewards, which can create buzz for a project, even before it is funded and ready for the public eye. Also, they are International: over 150 countries and another big plus is that they allow you to keep the funds you raise (even if you don’t reach your goal)! CoFundos

If you’re interested in creating an open source software project, then CoFundos is the right crowdfunding site for you. Here, developers can post their open source software ideas, get feedback, and then request funds to continue to develop the project. You can post an idea and developers can agree to make your idea into a real program. While funding is not the only source of assistance on this site, donations are expected from those who decide to bid on a project idea.

Fans Next Door

Fans Next Door is a crowdfunding site that accepts all types of creative projects: • Visual arts • Performances • Fashion • Video games • Design • Music • Crafts Here, posters will post their ideas and then investors will come along and help fund the idea. Since there is a reward system in place, investors are compelled to invest more as they will get more for their investment when they do. And the biggest plus of this European (beta) site is that there are no additional fees outside of the PayPal processing fees. Crowdfunding is a new way to make sure that smaller companies and artists get the funding they need. By spreading out the investors, funding isn’t as difficult to achieve, but success is.

Summary Informative list of crowdfunding websites.

Description This is a very informative article that makes it easy for people looking for crowdfunding options to find them in just one place. The eight sites that have been listed can open many doors for promising projects to leave the development table and become a reality.

Tags: Crowdfunding, IndieGoGO, Kickstarter, Quirky, Rockethub

Posted by Ruth Baxter

Feb 08, 2011 12:48 am GMT Viewed 3244 times

Author: Matthew Toren Source

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