Introduction of 7 crowdfunding platforms

 

  1. Indiegogo

Indiegogo is an international crowdfunding website founded in 2008 by Danae Ringelmann, Slava Rubin, and Eric Schell. The site is one of the first sites to offer crowdfunding. Indiegogo allows people to solicit funds for an idea, charity, or start-up business. It is built for anyone who has an idea and wants to raise funds to finance their goal. Fifteen million people from all around the world visit the site on a monthly basis. The site runs on a rewards-based system, meaning donors, investors, or customers who are willing help to fund a project or product can donate and receive a gift, rather than an equity stake in the company.

Interface design:

1

Business model: on the all-or-nothing and flexible funding plan, Indiegogo charges 4-5% if you reach your goal and this charge is in addition to credit card and PayPal charges that range from 3.5- 9%; it charges 9% if you do not reach your goal; transaction fees are an additional 3%

Pros: no application process, available in every country, diverse spread of projects

Cons: more expensive if you don’t reach your goal, but without the urgency of the all-or-nothing plan

Notable projects:

Total USD Project Name Creator Category % Funded Backers Closing Date
$12,147,187 Flow Hive Honey Flow Technology 17,385 36,653 2015-03-07
$5,859,412 Sondors Electric Bike Storm Sondors Technology 6,855 14,646 2015-04-02
$5,048,213 Restore King Chapel Now Elise Durham Education 63 282 2015-05-22
$5,022,943 An Hour of Code for Every Student Code.org Education 26,570 2,801 2014-12-14
$4,511,301 Super Troopers 2 Broken Lizard Industries Film 215 52,532 2015-04-24

 

  1. Kickstarter

Kickstarter is an American public-benefit corporation based in Brooklyn and New York, which has built a global crowdfunding platform focused on creativity. Kickstarter has reportedly received more than $1.9 billion in pledges from 9.4 million backers to fund 257,000 creative projects, such as films, music, stage shows, comics, journalism, video games, technology and food-related projects. People who back Kickstarter projects are offered tangible rewards and one of a kind experiences in exchange for their pledges. This model traces its roots to subscription model of arts patronage, where artists would go directly to their audiences to fund their work.

Interface design:

2

Business model: 5% of funds raised, with an all-or-nothing model that builds urgency but leads to the loss of all funds if the goal isn’t met, plus 3-5% transaction fees

Pros: name recognition, highest site traffic allows for greater project visibility

Cons: approval process, limited to creative projects, only allows projects based in the US and UK

Notable projects:

Total USD Project Name Creator Category % Funded Backers Closing Date
20,338,986 Pebble Time: Awesome Smartwatch Pebble Technology Product design 4,067 78,471 2015-03-27
13,285,226 Coolest Cooler: 21st Century Cooler that’s Actually Cooler Ryan Grepper Product design 26,570 62,642 2014-08-30
10,266,845 Pebble: E-paper Watch for iPhone and Android Pebble Technology Product design 10,266 68,929 2012-05-18
9,192,055 The World’s Best TRAVEL JACKET with 15 Features BAUBAX LLC Product design 45,960 44,949 2015-09-03
8,782,571 Exploding Kittens Elan Lee Playing cards 87,825 219,382 2015-02-20
8,596,474 OUYA: A New Kind of Video Game Console Ouya Inc. Video games 904 63,416 2012-08-09
6,333,295 Shenmue Yu Suzuki Video games 313 69,320 2015-07-17
6,225,354 Pono Music: Where  Your Soul Rediscovers Music PonoMusiC Team Technology 778 18,219 2014-04-15
5,764,229 Mystery Science Theater 3000 revival Joel Hodgson/Shout! Factory Film&video 288 48,270 2015-12-11
5,702,153 Veronica Mars Movie Rob Thomas Film&video 285 91,585 2013-04-12

 

  1. FundRazr

FundRazr is a Canadian crowdfunding site and Facebook app first released in 2009. It allows users to set up crowdfunding pages and embed fundraising apps on their Facebook pages to raise money for a variety of causes such as medical care, memorials, and animal rescue causes.  Millions of dollars have been raised from over 40,000 fundraising campaigns. FundRazr has been recognized for its innovation in the crowdfunding space for numerous times, including being the first crowdfunding platform to provide a collaborative community payment model, wherein funds are deposited directly to a company.

Interface design:

3

Business model: with the donation/perks crowdfunding model, where users keep everything they raise minus the 5% transaction fee; a fee is not charged if no fund is raised; 5% for completed or incomplete campaign plus 2.2% +$.030 transaction fees

Pros: deep social network integration to connect to people in your network, cheap and convenient transaction fees with funds going directly to your PayPal, can be used to fund anything and anywhere

Cons: more difficult to connect with other entrepreneurs and investors, with less than 5% of projects falling into the category of entrepreneurship

Notable projects:

Total USD Project Start Date Project Description
1,040,687 October 2015 Researching at the American Gut Project, the world’s largest crowdsourced, crowdfunded science project, has raised more than $1 million from over 6500 “citizen scientists” who have agreed to have their microbiomes sequenced.
1,007,356 March 2012 Professional Gamer Athene’s project Operation Sharecraft raises over $1 million (including a matching grant of $500,000 from DC Entertainment) for East African Relief by Save the Children.
414,869 July 2011 Wikileaks Staff Legal Defence Team raises £233.650 as of Nov. 7th, 2013 for Wikileaks staff costs and Julian Assange’s legal defence.
110,536 November 2015 Over $110,000 raised for Peterborough Mosque that was attacked and burnt.
107,742 November 2013 Over $100,000 raised for Australian King Hit victim.
103,034 December 2013 Over $100,000 raised for father with incurable brain cancer.
103,014 August 2013 Wikileaks Staff Legel Defence Team raises $63,969 as of Nov.7th, 2013 for Edward Snowden’s legal defence.
97,969 July 2013 Almost $90,000 raised for single mother who lost 3 limbs in a dog bite accident.
93,402 April 2012 Over $90,000 raised for Tiger Woods’ foundation to send 10 deserving students to college.
30,544 October 2013 Over $30,000 raised for “good hearted boy”, who used the money to pay off overdue lunch accounts in local elementary schools.
28,718 October 2013 Over $27,000 raised for internet viral, craiglist pitbull.
14,566 December 2015 Cancer patient Brice Royer surprises homeless woman with crowdfunding campaign for a home for Chiristmas, sparking international paying it forward movement.

 

  1. RocketHub

RocketHub is considered one of America’s largest online crowdfunding platforms. The users include musicians, entrepreneurs, scientists, game developers, philanthropists, film makers, photographers, theatre producers or directors, writers, fashion designers and so on. RocketHub enables Direct-to-Fan social media-based outreach and fundraising. Project leaders, for example, fundraisers, publicize campaigns themselves through Facebook, Twitter and similar platforms. While posting a campaign, users choose a campaign deadline, target funding-goal, and offer “perks” in exchange for contributions. Broadly, RocketHub shares similarities with platforms such as Kickstarter, Sellaband, and Pledgemusic, however if the selected funding target is not reached by the deadline, the project leader is still able to keep the collected funds.

Interface design:

4

Business model: 4% for completed campaign or 8% for partial campaign, with 4% transaction fees

Pros: easy to navigate interface, Success School offers tools for building better projects and businesses

Cons: step down in terms of traffic from Kickstarter and Indiegogo

Notable projects:

Total USD Project Name % Funded Funders Category Closing Date
493,991 Spira Duck Dynasty Camouflage Shoe with WaveSpring Technolog 494 3,667 Business 2013-11-19
159,602 ISEE-3 Reboot Project by Space College, Skycorp, and SpaceRef 128 2,238 Science 2014-05-23
103,814 Extra Credits 693 3,824 Business 2011-08-28
61,478 Games for Good 123 1,431 Social 2013-09-10
70,556 One Spark 2014 142 532 Social 2013-10-15

 

  1. GoGetFunding

GoGetFunding is a crowdfunding website that lets you raise money for anything that matters to you, from personal causes and events to projects and more. They have helped people from all over the world raise millions online. They are dedicated to making the lives of their campaign owners, donors and visitors happier and enriched. That could range from helping you raise money for critical medical expenses, an once-in-a-lifetime volunteer trip or to launch an exciting new business. This London based fund-raising site can be used to raise money for anything from paying for pet’s medical bills to creating a short film.

Interface design:

5

Business model: 3.5% with a keep-what-you-raised model, plus 2.9% transaction fee

Pros: easily used for public or private projects, anyone can post a project

Cons: fewer business/entrepreneurial projects

Notable projects:

Total USD Project Name % Funded Backers Closing Date
2,250 Fiona runs for cancer 345 22 2016-03-07
2,575 Roxy’s Adventurous Student Trip 107 30 2016-03-13
600 Makowski Twins Bike Fundraiser 100 20 2016-03-12
25,172 Support Bais Chabad of West Bloomfield 100 297 2016-03-10
301 Beauty Pageant 100 4 2016-03-07

 

  1. Crowdfunder

Crowdfunder is a Los Angeles-based equity crowdfunding platform that connects entrepreneurs to investors online. Since 2011, Crowdfunder has funded 58 deals, averaging $1.8 million apiece. The majority of those are tech startups, but others are social enterprises and small businesses. To date, $100 million in investment deal flow has come through Crowdfunder. This platform blends donation-based and investment crowdfunding models, as well as encouraging online and off-line crowdfunding and collaboration. Crowdfunder and its advisers have engaged with Congress, the SEC, and the White House on crowdfunding legislation and regulations.

Interface design:

6

Business model: 5% with an all-or-nothing format, plus 1.9%-5% Amazon FPS (flexible payments service) Transaction fee

Pros: mixes online and offline crowdfunding, emphasizes on businesses’ long-term growth

Cons: for-profit companies only

Notable projects:

Total  USD Project Name Closing Date
1,250,000 Bento-Delicious Asian Food Delivered in Minutes 2015-11-30
1,615,027 Personal Protection On The Go – Never Walk Alone 2015-10-31
287,250 Global Leader in Blockchain Payments & Loyalty Innovations 2016-02-29
1,166,000 FORCE OF NATURE 2016-02-29
423,500 SecondOpinionExpert 2015-12-20

 

  1. StartSomeGood

StartSomeGood is a crowdfunding platform exclusively for social change initiatives. It exists to help social entrepreneurs, non-profits and community groups to raise the funds they need to make a difference. It provides unrivalled personalized support to enable campaign creators to launch great campaigns, rally a community of supporters and raise funds to create world-changing impact. It is a platform of crowdfunding for social entrepreneurs, as well as nonprofits and other individuals committed to making change.

Interface design:

7

Business model: 5% for completed campaign, with “tipping point” model, and 3% transaction fees

Pros: opens globally; supports for-profits, nonprofits and individuals; attracts niche audience by highlighting projects centered on the social good

Cons: social good projects only, smaller reach than larger and more diverse websites

Notable projects:

Total USD Project Name Supporters Closing Date
101,781 Do Good Bus Tour with Foster The People 628 2011-08-17
153,412 The ASRC Food Justice Truck 933 2014-04-13
50,575 Tinker Tour: The Power of an Armband 213 2013-06-01
39,235 Make an Album – Change a Life 178 2013-01-12
6,502 Shining The Light On Trauma And Aid Work In Haiti 58 2013-05-27

There are plenty of crowdfunding websites emerging on the scene, such as GoFundMe, Ulule and RockThePost. If you want to find the very one crowdfunding platform that fit your needs best, you have to take time to examine each site in terms of potential funders, the quality of other projects and the site’s usability.

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