Day-by-day, it’s getting difficult for startups to get seed capital as so many entrepreneurs are looking at crowdfunding platforms to raise funding for their startups. You may have heard about crowdfunding or stories of different startups, raising millions of dollars online to expand their business.
What is Crowdfunding?
Crowdfunding is a method of raising capital through the collective effort of friends, customers, family members and individual investors. This method is extremely beneficial for entrepreneurs and mobile app development companies as it eliminates the imperious upfront costs, which stop most startups before they begin. However, this approach has tapped into the collective efforts of various individuals – primarily online through social media and crowdfunding websites.
How Does Crowdfunding Works?
For entrepreneurs and developers, Crowdfunding platforms have created the opportunity to raise hundreds & thousands of dollars from anyone with the money to invest. There are various crowdfunding websites like Indiegogo and Kickstarter that attract various people hoping to invest in their next big project. Last year, more than 80,000 people put up $20+ million on Kickstarter for a company, which developed a smartwatch alternative to the Apple Watch.
The best thing about crowdfunding is that it offers a forum to any individual, who has an innovative idea to pitch it in front of waiting investors. However, investors can choose from enormous projects and invest as per their choice. However, if you are also looking forward to getting fund for your application, then these best funding sites can help you to accomplish your dream project. But selecting a right platform is extremely important.
Here’s a List of 5 Best Crowdfunding Sites That Can Fuel Your App Idea:
Wefunder is a crowd investing platform that connects startups with investors online. The platform helps seed investors to buy stock for as little as $100 in the most capable new businesses across the country. Moreover, they also help founders in raising funds from their most passionate users, who deliver product feedback, marketing evangelism, and business connections.
Founded in 2010 by an MIT Sloan School of Management, the company claims on a number of investments. On its official website, it has been written that it has 9287 funders, who pledge to invest $25,989,550 in startups. Since 2013, more than $16 million have been invested on Wefunder and since then, the company’s portfolio has raised over $600 million in venture capital.
Kickstarter is the most popular and strongest crowdfunding platform which has launched more than 74k projects on its websites and 383M dollars raised through the website for projects. It has a success rate of 44% and can help any startup to raise funds. Thousands of investors explore the listed projects to give away their money to the project which they think is innovative.
Accepting all the major kinds of creative projects except causes, charity or scholarships, Kickstarter can be used to raise a small amount to big funding, and therefore, it is a right option for an app.
The main mission of Kickstarter is to help bring the creative projects to life. Till date, tens of thousands of innovative projects, no matter big or small, have come to life with the support of the Kickstarter community.
Seedinvest is a leading equity crowdfunding platform that has opened an access to venture capital and angel investing to everyone. The platform allows investors to access highly vetted startup investment opportunities.
Started by a group of MBA professionals from the Wharton School of the University of Pennsylvania, SeedInvest mainly concentrates on American startups and bring together the entrepreneurs and investors through an equity-based crowdfunding platform.
Moreover, it empowers entrepreneurs with one such platform to pitch to millions of investors across the US to raise seed capital. The network of SeedInvest contains 15000+ accredited investors, comprising hundreds of family offices and institutions. It invests between $500,000 – $5 million as part of a syndicate.
Quirky is a well-known Crowdfunding website for Inventors. The platform has developed 241 products, has 188 retail partners and community of 283000+ people.
For centuries, becoming an investor has been a difficult task as there were many complexities relating to financing, distribution, engineering and legalities that stood in the way of brilliant people executing on their great ideas.
But Quirky has rapidly changed the whole way of thinking about product development. It has the mission to partner with an investor in making their ideas successful. Moreover, the platform is dedicated to empowering everyday problem solvers to share their ideas with the world.
CrowdFunder is a social network crowdfunding platform for entrepreneurs and investors to connect, crowdfund, and grow. The platform puts tools, connects and advice to business owners & investors at all their stages of business.
Startups and small businesses can easily raise funds through equity, debt, and contribution-based instruments.
In addition to this, it also holds a series of contests in cities across the US, where local businesses can compete and get a chance to win funding up to $500,000. Concentrating mainly on US market. CrowFunder has funded more than 100 deals at an average deal size of $1.8M.
So, these are the top 5 crowdfunding websites that are putting your dreams into reality. However, if you are also looking forward to app funding, it’s important to know which things you should do in the correct sequence. If crowdfunding is the way to go for your project, you can select the right crowdfunding website from above mention list.