10 Best Crowdfunding Sites and Platforms in 2024

Finding the cash it’s essential to start a business could be difficult. Traditional methods like bank loans or pitching to investors are great options, but will not be accessible to everybody. Even for those who’ve secured a small business loan, chances are you’ll need more funds to cover your startup costs.

Crowdfunding is an progressive strategy to raise money from a big group of private investors. You should use crowdfunding to lift funds out of your existing customers or audience—or from a network of investors who’re lively on a crowdfunding platform.

Crowdfunding isn’t only a convenient strategy to raise money; it’s a movement. In 2023, crowdfunding added $1.1 billion to the US economy—with the common crowdfunding campaign raising nearly $8,000.

The advantages don’t stop at fundraising. Crowdfunding helps you to test recent products and gauge demand in your latest content idea. You’ll be able to trade preorder rights, gifts, exclusive access, or equity for the support of your audience.

This post accommodates the highest 10 crowdfunding sites for funding your corporation, product, content, or nonprofit project.

What’s crowdfunding?

Crowdfunding is a technique of raising capital where quite a few individuals contribute smaller amounts of their personal money to support a business. This contrasts with traditional fundraising, which usually involves securing large investments from a limited variety of sources, equivalent to accredited investors or enterprise capital firms.

How does crowdfunding work?

Crowdfunding “backers” are offered incentives in exchange for his or her donations and support. Incentives can include:

• Early access to buy a product, possibly at a reduced price
• The choice to preorder a product and have a say in its development
• Exclusive rewards like an ongoing discount, enhanced customer loyalty status, or free merch
• Access to the founding team or other crowdfunders
• Equity
• Exclusive content

In exchange for hosting your crowdfunding campaign, crowdfunding sites charge platform, transaction, and payment processing fees.

While every crowdfunding site has its own features, fee structure, and user base, the core concept is identical: You submit your project to the platform with a fundraising goal and a deadline, then campaign for support.

So, what are your options for raising funds for your corporation via crowdfunding platforms? Listed here are a few of one of the best crowdfunding web sites in 2024.

10 best crowdfunding platforms

1. Best overall: Kickstarter
2. Runner-up: Indiegogo
3. Best for small businesses: Fundable
4. Best for Shopify stores: Crowdfunder
5. Best for content creators: Patreon
6. Best for UK and Europe: Crowdcube
7. Best for private fundraising: GoFundMe
8. Best for nonprofits: Mightycause
9. Best for real estate crowdfunding: CrowdStreet
10. Best for high-growth startups: StartEngine

1. Kickstarter

Best overall crowdfunding platform

As one of the crucial well-known online fundraising platforms, Kickstarter is nearly synonymous with crowdfunding. Since its launch in 2009, the Kickstarter community has helped greater than 250,000 projects raise funds—including physical and digital products.

Kickstarter is a reward-based fundraiser platform. Backers are offered incentives to support a project, equivalent to exclusive preorder discounts, gifts, or shoutouts. You’ll be able to offer a tiered rewards structure to influence backers to commit higher amounts to your project—the more cash a backer pledges, the higher the rewards they unlock.

Kickstarter campaigns are an all-or-nothing affair, which suggests you simply get access to your funds (and pay Kickstarter’s platform fee) for those who meet your initial fundraising goal. For those who fall short, then all the cash stays along with your funders.

The result’s that projects on Kickstarter are likely to be high-quality and novel—often creative or progressive enough to be a focus for early adopters and headlines from the press. Backers generally view these projects as more trustworthy because they don’t part with their money unless the campaign succeeds.

Fees: Successful projects are charged a 5% platform fee plus transaction fees between 3% and 5%.

Pros:

• Large, lively community
• All-or-nothing model encourages donations
• Ideal for creative projects

Cons:

• No funds if goal isn’t met
• Charges 5% fee plus transaction fees
• Not for private causes or charities

2. Indiegogo

Runner-up crowdfunding platform

Indiegogo is a crowdfunding platform that supports businesses, artists, and nonprofits. While much like Kickstarter, it comes with its own set of easy-to-use tools and campaign options.

The largest difference between the 2 platforms is the choice to decide on a versatile funding goal in your campaign alongside a hard and fast all-or-nothing goal (like Kickstarter). With flexible funding goals, you receive your funds no matter whether you’ve met your ultimate goal by its deadline.

The flexible funding option is handy in case your project accommodates multiple stages or milestones. For those who can fulfill a few of your commitments to backers with a portion of raised investments, flexible funding lets you get to work, even for those who weren’t in a position to fund your entire campaign.

Indiegogo’s InDemand feature helps you to keep the momentum going and proceed raising money and not using a timeline, even after your fundraising campaign ends. This could be useful for funding extra production or achievement costs—or expanding your audience.

Fees: Indiegogo charges a 5% fee on all funds raised in your campaign. There’s also a transaction fee of three% plus 20¢.

Pros:

• Flexible funding options
• Supports a big selection of projects
• Offers ongoing fundraising

Cons:

• Charges 5% fee plus transaction fees
• Smaller community than Kickstarter
• Risk of underfunding with flexible option

💡 Shopify store BodyBoss transitioned to Indiegogo InDemand after a successful Kickstarter campaign.

3. Fundable

Best crowdfunding platform for small businesses

Fundable is an element of the Startups.co platform and is among the many top crowdfunding sites that allow US startups to supply rewards—including equity—in exchange for funding.

The platform offers self-managed fundraising in addition to campaign support, where Fundable will assist you create a pitch deck and discover prospective investors. You can even use Fundable to arrange your fundraising activities and keep track of investor interest.

Based on Fundable guidance, startups that use the platform to supply rewards typically raise fewer funds but get more backers. Meanwhile, startups that use equity crowdfunding normally raise more capital from fewer investors.

To succeed with equity crowdfunding, it’s essential to provide all of the research and resources that accredited investors expect, including a track record of growth, a pitch deck, and a solid marketing strategy.

Fees: $179 monthly, plus 3.5% plus 30¢ transaction fee for any funds collected via bank card.

Pros:

• Rewards or equity funding
• Offers campaign support
• Suitable for small businesses and startups

Cons:

• High monthly fee
• Joining the platform requires preparation and documentation
• Extensive financial information needed for equity crowdfunding

4. Crowdfunder

Best crowdfunding app for Shopify stores

For those who have already got a Shopify store and are fascinated about crowdfunding a brand new product through your website, the Crowdfunder app is an excellent fit.

Most crowdfunding platforms require you to create and run an account on their website. Crowdfunder bucks this trend by allowing you to show a web site product page right into a crowdfunding page—complete with a progress bar, funding goal, and preorder button.

Crowdfunder enables crowdfunding in its simplest form: accepting customer preorders as a strategy to validate an idea and fund production. Plus, you may avoid the commissions charged by third-party platforms in favor of a more predictable monthly fee.

Use Crowdfunder to gauge customer interest, test recent product ideas, raise money for a cause, or launch a limited-run product.

Fees: $24 monthly.

Pros:

• Turns a product page right into a crowdfunding page
• Ideal for Shopify store owners
• Charges monthly fee, not percentage

Cons:

• Lacks community aspect or marketplace
• Built for Shopify only

5. Patreon

Best crowdfunding platform for content creators

Patreon is built with digital creators in mind. So, it’s price considering for those who’re a podcaster, musician, game developer, or videographer.

Whereas most crowdfunding sites support limited-run campaigns, Patreon works on a subscription basis. Creators develop membership programs for his or her fans, who pay to affix a community of like-minded patrons and access exclusive perks.

Creators and web personalities can use Patreon to monetize their audiences and generate recurring revenue. You’ll be able to decide to let patrons pay monthly or per creation.

Patreon creators offer all types of exclusive perks based on different payment tiers, equivalent to access to gated content, branded merch, sneak peeks, shoutouts, and more. The positioning supports various integrations to support content on the platform. You’ll be able to upload videos, host livestreams, and run forums or newsletter groups in your patrons.

Fees: Between 8% and 12% of the income you earn from Patreon, depending in your plan. Plus, processing fees of as much as 6% plus 10¢ depending on payment method.

Pros:

• Ideal for subscription-based funding
• Allows community constructing
• Supports various integrations

Cons:

• Not for one-off projects
• Charges 8% to 12% fee
• Constructing a patron base takes time

💡 Find out how content creators Wait But Why use Patreon to extend their monetization streams.

6. Crowdcube

Best crowdfunding website for UK and Europe

Businesses outside the US should check the terms and conditions of the crowdfunding platforms listed up to now to be certain that that they qualify to make use of all of the service’s features.

Unlike the sites above, Crowdcube is a UK-based equity crowdfunding platform built for European businesses. You’ll be able to arrange several forms of equity crowdfunding using Crowdcube, including private and follow-on rounds.

Like Fundable, Crowdcube offers support with commonly faced issues equivalent to follow-on rounds and dividends.

Crowdcube has a comparatively small variety of campaigns. Still, corporations which might be approved and succeed with their fundraising goals on the platform are in a position to join Crowdcube’s Funded Club, gaining exclusive advantages from their partner organizations.

Promote your pitch to solicit investors out of your personal network or appeal to Crowdcube’s established community.

Fees: 7% of the quantity successfully raised, plus a 0.75% to 1.25% completion fee and payment processing fees of as much as 2.9%.

Pros:

• Made for European businesses
• Several types of equity crowdfunding
• Successful campaigns gain exclusive advantages

Cons:

• Charges 7% fee plus other fees
• Not suitable for businesses outside Europe
• Small variety of campaigns

7. GoFundMe

Best crowdfunding site for private fundraising

GoFundMe is a free crowdfunding platform built primarily to lift financial support for people, charitable causes, and community projects.

Because GoFundMe is suited to non-public fundraising, anyone can create a campaign. Backers on the platform are likely to support campaigns that originate from personal networks, local communities, or causes that resonate with personal interests (say, supporting a youth sports constructing renovation or helping a family in need).

Nevertheless, campaigns can gain momentum and attract a broader audience of backers. Even when visitors to your campaign page don’t donate, they’ll share your profile to spice up its visibility.

Unlike other crowdfunding web sites on this list, GoFundMe isn’t designed for industrial activities. But for those who’re a small business owner facing difficulties, or need to lift money to beat a private challenge, try leveraging GoFundMe for support.

Fees: No platform fee for fundraising campaigns, just 2.9% plus 30¢ payment fee.

Pros:

• Ideal for private fundraising and charities
• No platform fee

Cons:

• Not for industrial crowdfunding
• Success often is dependent upon personal networks

8. Mightycause

Best crowdfunding site for nonprofits

Mightycause is a longstanding online fundraising software company for nonprofit crowdfunding. While platforms like Kickstarter and Indiegogo could also be more well-known, campaigners have raised greater than $600 million on Mightycause since its inception in 2006.

As an alternative of a centralized platform, Mightycause offers tools and features which you could use in your website. There’s a fundraising page creator, donation forms and buttons, in addition to social media, email, and SMS integration. To administer all of it, a CRM system gives an summary of crowdfunding activities and generates reports. 

You’ll be able to run unlimited peer-to-peer, team, and event fundraising campaigns with Mightycause. Campaigns aren’t required to satisfy any goals, so in case your fundraiser doesn’t meet its financial goal, you may keep and use the donations you receive.

Fees: $79 to $119 monthly, depending in your plan. As much as 2.2% plus 29¢ in payment processing fees.

Pros:

• Tools for nonprofit crowdfunding
• No goal requirements

Cons:

• High monthly fee
• Not for industrial projects

9. CrowdStreet

Best for real estate crowdfunding

CrowdStreet offers individual investors the chance to contribute funds to real estate projects. Up to now, it has serviced greater than $4 billion in investments.

Real estate sponsors can apply for access to the platform’s marketplace to lift passive capital for his or her construction or financial projects. CrowdStreet also supports projects with investor management services and a digital marketing campaign in your pitch.

As a distinct segment crowdfunding platform, CrowdStreet is probably going only suitable for established real estate firms that deal mostly in industrial properties. The platform’s annual market outlook report gives a signal of the sorts of projects investors are almost definitely to be fascinated about.

Fees: Varies.

Pros:

• Platform for real estate projects
• Offers investor management and marketing support

Cons:

• Just for established real estate firms
• Thorough vetting process for projects

10. StartEngine

Best equity crowdfunding site for high-growth startups

StartEngine is an equity crowdfunding platform where you may raise capital through the positioning’s network of greater than 1.8 million prospective investors.

With a purpose to open investment to the general public, StartEngine allows fundraising through Regulation Crowdfunding, an exception to SEC regulations that permits corporations to lift as much as $5 million. While this process is more streamlined than traditional methods of raising funds from accredited investors, it still has strict financial and legal requirements.

Fortunately, StartEngine provides the financial review and legal documentation crucial to launch a Reg CF campaign. Firms may save on costs and infrastructure by capping their fundraising at $107,000, which allows them to avoid extensive financial reporting requirements.

Nevertheless, StartEngine is probably going best for startups which have already demonstrated a possible for growth and are able to take a position upfront funds into their crowdsourcing campaign.

Fees: Varies.

Pros:

• Allows for equity crowdfunding
• Provides financial review and legal documentation

Cons:

• Application requires extensive preparation and documentation

How this list of crowdfunding sites was created

Creating a listing of the highest crowdfunding platforms required a deep dive into the world of crowdfunding. Greater than 20 platforms were considered, including well-known names and area of interest services.

The goal was to supply a comprehensive list that caters to a wide range of founder and investor needs, whether it’s for private causes, business ideas, nonprofits, or startups.

Each platform was evaluated based on several key aspects:

• Usability. The benefit of use of the platform was a top consideration. For instance, Patreon’s user-friendly interface for content creators and their fans was a standout feature.
• Pricing. The associated fee of using the platform was one other major factor. Platforms like Crowdfunder, which charges a predictable monthly fee, got preference over those with complex fee structures.
• Tools. The tools and features offered by each platform were also considered. For example, Mightycause’s fundraising and donation management features were particularly impressive.
• Success rate. The success rate of campaigns on each platform was also taken into consideration. Platforms known for his or her high project success rates got preference.
• Post-investment support. Platforms like Indiegogo, which provide features like InDemand to maintain the momentum going after a campaign ends, were highly regarded.
• Investment options. The range of investing options available to backers was also considered. Platforms that supply multiple ways for backers to contribute got preference.

Raise money for your corporation today

By reaching out to investors, potential customers, or fans, crowdfunding offers an accessible strategy to raise the cash it’s essential to start a business or speed up product development. 

In truth, many Shopify merchants have seen their business take off due to the funds raised via the crowdfunding sites on this list.

For those who can spread awareness of your product idea and pitch your campaign to the correct people, crowdfunding could be just right for you.

You can even consider raising capital by combining crowdfunding with other types of fundraising, equivalent to small business loans and Shopify’s own investment program, Shopify Capital.

Illustration by Rose Wong