Comparison of crowd funding services
Crowd funding (alternately: crowdfunding, crowd financing, equity crowdfunding) web sites provide Internet platforms which support the collective cooperation, attention and trust by people who network and pool their money and other resources for projects initiated by other people or organizations.
Crowd funding pertains to donation based fundraising for businesses or creative projects, typically via an online funding portal. Equity Crowdfunding pertains to equity based fundraising, in which equity ownership in a business is given in exchange for investment capital via an online funding portal. There are fundamental differences in the services provided by many crowdfunding platforms. Some platforms such as CrowdCube enable users to invest small amounts and directly acquire shares in start-up companies. Some others like Seedrs merge the funds to invest in new businesses, but works as a nominated agent.
Money for goods
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, pledged money is only collected from the contributors if the fundraising goal is met. 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 – The funds collected so far are given to anyone who completes the project.
|ArtistShare||KiA||Musicians||Has own record label.|
|Appsplit||KiA or AoN||Technology||US||Has an app or app idea.|
|Bountysource||Bounty or AoN||Open-source software||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.|
|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|
|First Funder||KiA or AoN||Community based|
|FundAnything||KiA||Funding for any kind of project - business, creative, arts, personal, charitable.||Fundraising backed by major celebrities such as Donald Trump.|
|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
|Indiegogo||KiA or AoN||Allows a broad range of projects||One of the top sites|
|Kickstarter||AoN||Creative projects||US, UK, Canada||Highest funded projects to date|
|Microryza||AoN||Fund scientific research||No tangible awards are given for backing, only personal satisfaction|
|Myfreeimplants||AoN||Cosmetic surgery||Focused on breast augmentations. International|
|Neighbor.ly||KiA or AoN||Civic projects||Specializes in raising local match for securing federal and state grants|
|Offbeatr||AoN||Pornography||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|
|Rally.org||KiA||Medical, educational, charitable, creative, entrepreneurial, and political causes||US, Germany|
|YouCaring||KiA||Helping people with
medical issues and life changing causes
|Weeve||KiA||Nonprofits||Site operates "freemium" model without transaction fees|
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:
- Equity – Investors receive equity in the company or entrepreneur that is raising funds.
- Property - Investors receive interests in the property from an owner who is raising funds.
- Loan – The entrepreneur or company borrows money and must repay it (typically, with interest).
- Other – There are a number of other schemes in use which are generally unique to particular services.
|Angels Den||Equity, Donations, Loans||All businesses||UK|
|AngelList||Equity, debt||Start-ups||US||Currently serves accredited investors|
|BankToTheFuture||Equity, debt, awards||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 accredited investors|
|CrowdCube||Equity and rewards||start-ups, small businesses, growing businesses||UK|
|Fundable||Equity||Seed stage businesses||US|
|FundedByMe||Equity and rewards||Entrepreneurs||Sweden and Finland|
|Funding Circle||Loan||Small businesses||UK|
|GrowthFunders||Equity||Start up, early stage, and established 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/loan||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|
|Rock The Post||Equity||Early stage tech-startups|
|SecondMarket||Equity, debt||Late stage start-ups and privately held companies at a pre-IPO or pre-acquisition stage|
|Seedrs||Equity||Seed-stage businesses, Investments from £10+||UK|
|Seedups||Equity||Early stage tech-startups||UK, Ireland, USA & Canada|
|StartupValley||Equity||Technology start-ups and businesses||US|
|Symbid||Equity, perks||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||perks||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||Loan||Loans for recent college graduates|