Comparison of crowd funding services

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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, supporting entrepreneurship, businesses, 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.

Funding models[edit]

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.[1]

Money for goods[edit]

There are three 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.
Name Funding
model
Focus Country Notes
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.
ClassWish KiA Education crowdfunding for school and teacher supplies US Allows tax-deductible support of any school and any teacher in the U.S.
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
First Funder KiA or AoN Community based US
FundAnything KiA 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
Headstart AoN Entrepreneurs Israel
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
Mobcaster AoN TV shows US
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
Petridish.org AoN Scientific research US
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
RocketHub KiA US
Sellaband AoN Musicians Germany
Sponsume KiA UK
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
US
Weeve KiA Nonprofits Canada Site operates "freemium" model without transaction fees

Money for business ventures[edit]

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.
Name Funding
model
Focus Country Notes
Angels Den Equity, Debt, Donations All businesses UK
AngelList Equity, Debt Start-ups US Currently serves only accredited investors
BankToTheFuture Equity, Debt, Rewards small businesses and new start-ups crowfunding operations currently suspended 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
EarlyShares Equity US
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 only accredited investors
Funding Circle Debt Small businesses UK
Gambitious Equity Game development Netherlands
GoFundMe Equity Start-up, Non-profit, Personal USA
Innovestment GmbH Equity auctions Germany
Invesdor Equity Startups and growth companies Finland, Sweden, Denmark and Estonia
InvestedIn Equity USA
Kopernik Other 3rd world issues
Lending Club Debt USA
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 serves only accredited investors
Optimize Capital Markets Equity Canada
OurCrowd Equity Israel
Prosper Marketplace Debt USA
rebuildingsociety.com Debt All businesses UK
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
SeedInvest Equity Early stage technology startups USA Currently serves only accredited investors
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[citation needed]
TenPages.com Revenue sharing Books Netherlands
ThinCats Loan Small businesses UK
TrustLeaf Debt Small businesses US Friends and family crowdfunding
TubeStart Equity Video production US
Unbound Perqs Books UK Acts as both a crowdfunding platform and a publisher. Launched Terry Jones' Evil Machines, the first[citation needed] book to be financed by crowd funding.
Upstart Debt Loans for recent college graduates USA
Wahooly Equity
Wefunder Equity Startups US
Zopa Debts UK

Continuous funding[edit]

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.

Name Frequency Focus Notes
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.

Post-creation services[edit]

Some services invite people to award creators after they already published their work.

Name Method Focus Notes
Flattr Flattr button display along the content Content creators
Unglue.it Contributing to making books open access Books

See also[edit]

References[edit]