Crowdfunding provides startups with an opportunity to raise funds for project development. Without a doubt, securing a loan from a bank comes with a thorough vetting process. Furthermore, it’s always a risk, since you are not sure how the product will perform on the market and it may not raise enough money to repay the loan. Crowdfunding helps to eliminate such challenges. Here are the best crowdfunding sites for startups to consider.
One Of The Best Crowdfunding Sites For Startups Is SeedInvest
With a network of more than 12,000 accredited investors, SeedInvest provides an easy way for startups to obtain funding for their projects. Businesses can also promote their projects through the platform’s fully integrated advertising and social media tools.
Also, you can host remote meetings with shareholders and potential investors through the site’s virtual boardroom thus making it easier for entrepreneurs to close deals faster. SeedInvest only accepts proposals from U.S based startups.
The startup must also provide proof of concept, minimum viable product as well as two full-time members.
Even though most crowdfunding sites support a wide range of industries and categories, SmallKnot is exclusively reserved for small and independently owned companies. This platform also supports reward-based crowdfunding where campaigners can reward people who donate to their projects.
A team of people with startups who had encountered numerous challenges while trying to raise funds for their businesses started this platform. It provides entrepreneurs with an opportunity to raise money from different sources.
Fundable has a maximum cap of $50,000 for reward-based crowdfunding. On the other hand, equity-based crowdfunding is meant for startups who are seeking larger amounts of money.
Since its launch in 2009, this site has helped thousands of startups to access business capital from different investors, both accredited and non-accredited. Facebook is one of the biggest beneficiaries of this site.
This platform mainly focuses on businesses. It supports a wide range of industries such as mobile, media, software, social gaming and entertainment. The site undertakes a thorough vetting process.
If you have a startup and you are looking for equity investors, then you should sign up on this platform. With a network of more than 20,000 investors, you just need to share your business idea and profile and you will land an investor within a few days.
However, your project has to be unique. With the site’s patented analysis software, you can easily optimize your project to reach potential investors who would be interested in your niche.
Final Word On The Best Crowdfunding Sites For Startups
As you can see, there are numerous options for startups to get funding through crowdfunding sites. If you have a great idea for a product that you would like to develop and launch onto the market but lack the funding, then you should consider trying one of these crowdfunding sites.