Skip to content

Top 10 Crowdfunding Platforms for a Successful Campaign in 2020!

Many Fortune 500 companies were either backed by wealthy parents or years of hard work. Luckily, aspiring entrepreneurs today have other ways to generate money for their million-dollar idea.

Back in the day, even the most brilliant ideas died due to the lack of funds. Nowadays, crowdfunding platforms have offered a solution to this grave issue.

Crowdfunding has made it simpler for startups to raise money. Meanwhile, crowdfunding tools like JustEarlyBird have made managing fundraisers easier. On the whole, it’s a domino effect that ends up rolling the ball into the entrepreneurs’ court.

But, here’s a minor issue: there are several active crowdfunding platforms. Which one do you choose for your business campaign?

Before signing up for a platform, you must consider the fee structure, success rate, ease of use, and site features. Let’s talk about the best platforms to run a successful crowdfunding campaign:

Before signing up for a platform, you must consider the fee structure, success rate, ease of use, and site features. Let’s talk about the best platforms to run a successful crowdfunding campaign:

 

Crowdfunding Platform 

Platform Fees

Payment Processing Fee

Category 

Kickstarter 

5%

3% + 20 cents

Creativity/Business

Indiegogo

5%

3% + 30 cents

Creativity/Business

Patreon

5%

3% or 5% + 25 cents or 35 cents

Art

GoFundMe

0%

2.9% + 30 cents 

Personal projects/ nonprofits

Fundly 

4.9%

2.9% + 30 cents

Nonprofits/ political and religious organizations

Real Crowd

$15,000 listing fee

None 

Real Estate/ Investments 

Realty Mogul 

None 

Variable 

Real Estate/ Investments 

GiveCampus 

Variable 

Variable 

Education

DonorsChoose

None 

1.5% to 2.5% 

Education 

Experiment 

8%

2.9% + 30 cents

Science 

Crowdfunding for Business

Do you have an idea that can translate to millions of dollars in success? Then, you can run a successful crowdfunding campaign on one of the platforms discussed below.

  • Kickstarter

Being one of the most popular crowdfunding platforms, Kickstarter is ideal for raising money for creative projects. For instance, if you’re going to make a documentary or need money to develop your prototype into a sellable product, this is the right platform.

Kickstarter works on a reward-based formula. You give your backers rewards for their pledge to your cause.

The tricky part here is that the rewards have to be managed manually. If your campaign is booming, you’ll have hundreds of people donating money in a day. Thus, it can be tedious to manage rewards.

Additionally, you can add up some smart automation tools that’ll help you boost your crowdfunding campaign! JustEarlyBird is a fantastic reward management tool that can help you out. You can work on your project while the tool takes care of rewarding your backers.

Moreover, the crowdfunding platform has an all or nothing policy. Therefore, you only get your funds once you’ve reached the target.

Along with a 5% platform fee, there’s a 3% + 20 cents payment processing fee for each transaction. 

  • Indiegogo

Much like Kickstarter, Indiegogo is a great place to run a successful crowdfunding campaign if you’re starting a creative project.

It works a bit differently from the former, though. You can choose a flexible funding policy to get the raised funds even if you don’t reach the target.

Every month, the creators hand-pick the top campaigns and also have Team Favorites.

Indiegogo has a platform fee of 5% with a payment processing fee of 3% + 30 cents on each transaction.

  • Patreon

If you follow artists, chances are you already know about Patreon. The platform supports thousands of artists worldwide from different art disciplines.

Backers pay a monthly subscription fee to gain access to exclusive content and art from their favorite creators. In return, artists are encouraged to give the backers rewards for their continuous support.

Patreon’s fee structure differs depending on your location and the artists you’re supporting. The platform fee is 5%, but the payment processing fee ranges from 3% to 5%.

Plus, the additional charges vary, ranging from 25 cents to 35 cents.

Crowdfunding for Personal Projects and Nonprofits

Crowdfunding for nonprofits or personal projects has a different dynamic to raising funds for a new gadget or movie. Thus, you need a platform with relevant structure and community.

  • GoFundMe

As a nonprofit, you won’t have much to spend initially. Therefore, GoFundMe is an ideal choice for you. First off, the platform charges nothing for starting a campaign, while the payment processing fee is 2.9%.

Other outstanding features of the platform include donor protection guarantee and 24/7 customer support.

To date, the site has helped raise over $5 billion for nonprofits and personal projects. You can raise money for everything from flood relief victims to a stray dog’s surgery.

  • Fundly

Fundly is a crowdfunding platform where you can raise money for different social causes. Some categories include memorials, military, charity, pets, politics, religious organizations, LGBT, cancer patients, etc.

Starting a fundraiser is free on the site, but there’s a 4.9% platform fee for every donation. Additionally, there’s a 2.9% + 30 cents payment processing fee.

Crowdfunding for Real Estate

Real estate crowdfunding platforms allow you to invest in leased properties and access equity investments.

  • Real Crowd

On Real Crowd, you can meet commercial real estate companies and avail investment opportunities. If you have some savings to invest, this is the right place to do so. Real Crowd gives you access to stocks, bonds, and real estate.

As an investor, you don’t have to pay a cent. However, real estate companies or individuals who list investments have to pay a fee of $15,000.

  • Realty Mogul

Realty Mogul connects users to investment opportunities in the residential and commercial sectors. Anyone can use the platform, even if non-accredited.

The people behind the site go to great lengths to ensure that every opportunity on their crowdfunding platform is legit. Therefore, they scrutinize all investment projects and only authorize those meeting their strict criteria.

The fees for loans and equity purchases differ, but your minimum investment should be $1000.

Crowdfunding Platforms for Education

On educational crowdfunding platforms, you can raise money for public schools, renovating a classroom, or paying student loans.

  • GiveCampus

GiveCampus works with over 850 educational institutes to help students and faculty raise funds for schools. Instead of the money going to the person managing the campaign, it goes to the respective school.

You can create and customize mobile-friendly donation forms. Furthermore, you can opt for a volunteer management system to include parents and staff.

Schools can either pay a monthly subscription or get a quote from GiveCampus.

  • DonorsChoose

As a teacher, if you want to run a successful crowdfunding campaign, DonorsChoose is the simplest platform to navigate.

You can raise funds for anything, such as buying iPads for students or painting a classroom.

Backers pay a monthly donation and can choose a different cause every month. Alternatively, they can trust the platform to give their money to the most urgent campaign.

Although there is no platform fee, the transaction processing fee ranges from 1.5% to 2.5%. It may be higher, depending on the mode of payment.

Crowdfunding for Science

With tech and media taking up most of the spotlight, there’s hardly any attention to scientific research in the online community. However, some crowdfunding platforms help bridge this gap.

  • Experiment

Experiment is a crowdfunding platform for scientists who need funds for new research and discoveries. Some categories include social science, biology, ecology, chemistry, economics, medicine, neuroscience, and data science.

Apart from the sciences, you can also raise money for art, design, and education.

Alternatively, backers can select projects by institutions such as Cornell University, the University of Washington, and several others.
Backers have open access to the research data and can view the final publications in scientific journals. Experiment charges a platform fee of 8% and 2.9% + 30 cents payment processing fee on each transaction.

Additionally, the platform follows an all or none model. Thus, you only get the money once you reach your target.

Make Sure you Pick the Best Crowdfunding Platform Adapted to your Needs

To run a successful crowdfunding campaign without wasting your money and time, you need to select the right platform for your project. Consider the following things when making this decision.

  • Category

Start a fundraising campaign for your project on the platform in the relevant category. That’s where your potential backers are.

Sure, you can start a fundraiser to buy new chairs for your classroom on Indiegogo. But you’ll have better luck on DonorsChoose because it’s made particularly for educational crowdfunding.

  • Ease of Use

Don’t get stuck with a site that’s hard to navigate. If it’s difficult for you, it will definitely be a pain for your backers too. So, it’s only bound to harm your cause.

Choose a platform that’s easy to use and then use a tool like JustEarlyBird for easy management of rewards.

  • Funding Model

Crowdfunding platforms use two funding models: ‘all or nothing’ and ‘flexible’. In the former, you only get the raised funds if you meet the target.

The latter model gives you access to the funds you have raised in the given timespan – mostly 60 days – even if you’re far from the target.

Choose the site that offers your preferred model.

Final Words

Now that you know about the top platforms, nothing can stop you from running a successful crowdfunding campaign.

Depending on your potential backers, personal preference, and business type, you can select the most suitable platform for your needs.

Go take that trip, shoot that documentary, and bring your prototype to life.

Share:

Share on facebook
Share on twitter
Share on linkedin

You might also like