Comparison of crowd funding services
Crowdfunding (alternately: crowd funding, crowd financing, equity crowdfunding) is a process in which individuals pool money and other resources to fund projects initiated by other people or organizations. Crowdfunded projects may include creative works, products, nonprofit organizations, or donations for a specific purpose (e.g., to pay for a medical procedure). Crowdfunding usually takes place via an online portal that handles the financial transactions involved, and may also provide services such as media hosting, social networking, and facilitating contact with contributors.
Crowd funding is donation-based fundraising for businesses or creative projects, typically via an online funding portal. Some but not all crowdfunding projects offer contributors rewards, which may differ based on the amount of money donated. Rewards can include copies of a creative work, products created with the funding, special or personalized incentives (such as autographed works or swag), or public recognition.
In equity crowdfunding, a crowdfunding approach is used to raise investment capital and contributors receive equity in the resulting business. Contributors may act as investors and receive shares directly, or the crowdfunding service may act as a nominated agent.
Money for goods
There are four basic models provided for – some sites offer a choice between them:
- All or Nothing (AoN) – When the fund-raising period is over, money is only collected from the contributors if a pre-determined minimum amount of money has been pledged. If the goal is not met, no money is collected.
- Keep it All (KiA) – Whether the project goal is met or not, all of the funds collected (minus commission) are handed over to the entrepreneur. If he or she has insufficient funds to meet the objectives, then it is up to the recipient to refund them to the contributors.
- Bounty – Funds are raised for the creation of a product or the solution of a particular problem (often a software bug). They are awarded when someone successfully provides the requested service.
- No Goal (NoG) - Funds are raised for the duration of the project with no specific goal needed to be reached in order to complete the project. These types of projects often have outside sources of fundraising as well that will ensure the completion of the project if all of the funds necessary are not raised through crowdfunding.
|ArtistShare||KiA||Musicians||US||Has own record label.|
|Bountysource||Bounty or KiA||Open-source software||US||Bounties are attached to GitHub issues. Anyone can collect the bounty by submitting a pull request that resolves the issue.|
|Catincan||AoN||Open-source software||Existing project developers put features up for funding that will be integrated into main branch.|
|CentUp||KiA||Ongoing transactions and Social Impact||US||Decentralized crowdfunding linked to specific pieces of content.|
|CommonBond||KiA||Student loans||US||Funded by crowdsourcing and large investors.|
|Community Funded||KiA or AoN||Platform Creation for Universities, Nonprofits, and Faith-Based Organizations||US||Allows for white-labeled integration on existing websites|
|DonorsChoose||AoN||Education crowdfunding for school supplies||US|
|FanBacked||KiA or AoN or NoG||Entertainment Focused Full Service Platform||US||FanFunding focused on engaging artists with their fan community. Provides Campaign Management and Reward Manufacturing / Fulfillment services|
|First Funder||KiA or AoN||Community based||US|
|FundAnything||KiA or AoN or NoG||Funding for any kind of project - business, creative, arts, personal, charitable.||US||Fundraising backed by major celebrities such as Donald Trump.|
|FundedByMe||AoN||Equity and rewards||Sweden, Finland, Norway, Italy, Germany, Denmark||Only platform offering equity and reward based crowdfunding in combination with European-wide cross-border investments.|
|FundRazr||KiA||Personal, charitable, entrepreneurial, and political causes||Canada||Available as an app for a Facebook page.|
|Fundly||KiA||Personal, charitable, and political causes||US||Available as an app for a Facebook page. Charges a per credit card transaction fee.|
|GiveForward||KiA||Online fundraising website to raise money for medical expenses.||US||Provides personal fundraising coaches.|
|GoFundMe||KiA||Helping people after accidents and illnesses||US|
|Indiegogo||KiA or AoN||Allows a broad range of projects||US|
|Kickstarter||AoN||Creative projects||US, UK, Canada, Australia, New Zealand||Highest funded projects to date|
|Lendico||AoN||Consumer loan||Germany, Austria, Poland, Spain, South Africa||Funded by crowdfunding and institutional investors.|
|Microryza||AoN||Fund scientific research||US||No tangible awards are given for backing, only personal satisfaction|
|Myfreeimplants||AoN||Cosmetic surgery||US||Focused on breast augmentations. International|
|Offbeatr||AoN||Pornography||US||Projects must first get enough votes from users before they are open for funding|
|Peoplefund.it||AoN||UK||Attached to Hugh Fearnley-Whittingstall|
|Piggybackr||KiA||Young children and students||US||Young students may raise money. Compliant with Children's Online Privacy Protection Act|
|Planeta.ru||AoN or KiA||Allows a broad range of projects||Russia|
|PledgeMusic||AoN||Musicians||Spain, UK, US|
|Pozible||AoN||Creative||Australia, Singapore, Malaysia, US||Bitcoin can be used, Self-hosting can be used, One-on-One help|
|Rally.org||KiA||Medical, educational, charitable, creative, entrepreneurial, and political causes||US, Germany|
|Tilt.com||KiA or AoN||Any goal||US||Offers both a consumer product and enterprise solution for brands.|
|YouCaring||KiA||Helping people with
medical issues and life changing causes
|Weeve||KiA||Nonprofits||Canada||Site operates "freemium" model without transaction fees|
Money for business ventures
Crowd funding can be used to raise capital (equity) or borrow money. While organized informally, they typically involve large numbers of small investors or lenders:
- Debt crowdfunding – The entrepreneur or company borrows money and must repay it (typically, with interest).
- Equity crowdfunding – Investors receive equity in the company or entrepreneur that is raising funds.
- Property crowdfunding - Investors receive interest in the property from an owner who is raising funds.
- Other crowdfunding – There are a number of other schemes in use which are generally unique to particular services, e.g., perqs, publication, or rewards.
|Angels Den||Equity, Debt, Donations||All businesses||UK|
|AngelList||Equity, Debt||Start-ups||US||Currently serves accredited investors|
|BankToTheFuture||Equity, Debt, Rewards||small businesses and new start-ups||UK|
|Bolstr||Revenue share||Small businesses||US||Able to operate now, pre-JOBS Act|
|CircleUp||Equity||Consumer products and retail||US||Currently serves only accredited investors.|
|Companisto||Equity||European companies, Investors from all over the world||Germany, Switzerland / Europe|
|CrowdCube||Equity, Rewards||start-ups, small businesses, growing businesses||UK|
|EquityNet||Equity, Debt||Startups and mature companies||US||Launched crowdfunding platform for Reg D offerings in 2005|
|Fundable||Equity, Debt, Rewards||Seed stage businesses||US|
|FundedByMe||Equity, Rewards||Entrepreneurs||Sweden, Finland, Norway, Italy, Germany, Denmark|
|FundersClub||Equity||Start-ups||US||Currently serves accredited investors|
|Funding Circle||Debt||Small businesses||UK|
|Innovestment GmbH||Equity auctions||Germany|
|Invesdor||Equity||Startups and growth companies||Finland, Sweden, Denmark and Estonia|
|Kopernik||Other||3rd world issues|
|LendInvest||Debt||Property Development Entrepreneurs/ Mortgages||UK||First live peer-to-peer lending platform specifically for residential and commercial mortgages|
|MicroVentures||Equity||Tech Startups & High Growth||US||Currently open to Accredited Investors|
|Optimize Capital Markets||Equity||Canada|
|Return on Change||Equity||Early and growth stage startups in critical industries||USA|
|Rock The Post||Equity||Early stage tech-startups||USA|
|SecondMarket||Equity, Debt||Late stage start-ups and privately held companies at a pre-IPO or pre-acquisition stage||USA|
|Seedrs||Equity||Seed-stage businesses, Investments from £10+||UK & Europe||First equity crowd funding platform to be approved by the FSA in the UK.|
|Seedups||Equity||Early stage tech-startups||UK, Ireland, USA & Canada|
|StartupValley||Equity||Technology start-ups and businesses||US|
|Symbid||Equity, Rewards||Start ups and business ideas, entrepreneurs, small businesses, accelerators, incubators, crowd investors, angel investors||Netherlands||Responsible for one third of the Dutch crowdfunding market in 2012|
|Unbound||Perqs||Books||UK||Acts as both a crowdfunding platform and a publisher. Launched Terry Jones' Evil Machines, the first book to be financed by crowd funding.|
|Upstart||Debt||Loans for recent college graduates||USA|
|Wefunder||Equity||Startups||US||Wefunder is predicated upon the idea that anyone, regardless of wealth, should be able to invest in a company.|
Some services allow for a continuous funding model as opposed to a one-time donation. These tend to apply to, but are not limited to, art projects such as music, YouTube videos, podcasts, web-comics, etc. — anyone who makes content on a regular basis. They differ mainly in the frequency in which payments are charged to the funders.
|Patreon||Every time new content is released||Musicians, Podcasts, Vloggers, Youtubers, Webcomics||Subscribing to a project allows to view and post on its content stream. Patreon allows to set a monthly maximum to avoid going over a set budget.|
Some services invite people to award creators after they already published their work.
|Flattr||Flattr button display along the content||Content creators|
|Unglue.it||Contributing to making books open access||Books|