10 Best Crowdfunding Sites For Startups in 2024

Finding funding for your startup can be a real challenge, and that’s where the best crowdfunding sites for startups come in. So, you’ve got a fantastic idea but an empty bank account? Enter crowdfunding – it’s about rallying a community behind your vision. However, not all platforms are created equal.

In this article, we’re sharing details on the top 10 crowdfunding sites for startups. These platforms don’t just open doors; they kick them wide open, ushering in a wave of opportunity for budding entrepreneurs like yourself.

Let’s not wait any longer and find the answer to ‘What are the best crowdfunding sites for startups?’

Crowdfunding Overview

What is crowdfunding?

Crowdfunding is a method of raising capital through the collective effort of individuals, typically via the Internet. It allows entrepreneurs, artists, and organizations to raise funds for projects, products, or causes by soliciting small contributions from a large number of people, often through crowdfunding platforms for startups.

In detail, crowdfunding platforms serve as digital hubs where startup founders can showcase their innovative projects, set ambitious funding targets, and entice potential backers. Moreover, they streamline the transaction process, ensuring that funds flow seamlessly from backers to startups.

What are the types of crowdfunding?

Within the realm of crowdfunding, startups encounter various avenues.

1. Equity crowdfunding: For startups seeking to scale rapidly, equity crowdfunding presents an opportunity to secure investment by offering a share in the company’s ownership. This model aligns investors’ interests with the startup’s success, fostering a symbiotic relationship.
2. Debt-based crowdfunding: Through peer-to-peer lending platforms, startups can access capital by borrowing from individual investors and committing to repayments over time. This avenue provides flexibility and autonomy, allowing startups to navigate their financial journey on their terms.
3. Reward-based crowdfunding: By offering backers exclusive rewards or early access to products, startups can incentivize contributions and cultivate a loyal community around their brand. This approach is suitable for startups with innovative products or compelling stories.
4. Donation-based crowdfunding: Startups can tap into the generosity of individuals who contribute funds without expecting tangible returns. This model often resonates with socially conscious startups or those championing noble causes.

How does crowdfunding work?

Crowdfunding backers receive incentives for their donations and support, including:

1. Early access to purchase a product, potentially at a discounted price.
2. The opportunity to pre-order a product and contribute to its development.
3. Exclusive rewards, including ongoing discounts, elevated customer loyalty, or complimentary merchandise.
4. Access to the founding team or fellow crowd funders.
5. Equity stakes.
6. Exclusive content.

In return for hosting your crowdfunding campaign, platforms charge platform, transaction, and payment processing fees.

While each crowdfunding site boasts unique features, fee structures, and user bases, the fundamental concept remains consistent: You present your project on the platform with a fundraising goal and a deadline, then rally support.

10 Best Crowdfunding Sites for Startups

What are your options for crowdfunding your business? Let’s explore some of the best crowdfunding sites for startups today to determine which is best suited for your next campaign.

Let’s dig in one by one.

#1. StartEngine

Type: Equity-based

StartEngine is one of the leading crowdfunding sites for startups in the US. According to its website, the platform has successfully raised over $650 million through a mix of Regulation and Regulation A+ crowdfunding, using its subsidiaries, StartEngine Primary and StartEngine Capital. Funding has been distributed across more than 500 startup offerings featured on its platform.

Pricing: A platform fee of 7% to 12% is charged, depending on the investment method and associated fees.

Pros of StartEngine

• Holds a respected reputation in the equity crowdfunding sphere
• Startup founders maintain control over their offerings
• Funding can be quickly collected upon reaching the $12,000 threshold

Cons of StartEngine

• Only available to US-based startups
• Maximum funding is capped at $50 million under Regulation A+ and $1.07 million under Regulation Crowdfunding
• Minimum funding goal is set at $10,000

Best for:

• Startups with a long-term vision
• Growth-focused startups

Why do I like StartEngine? StartEngine is attractive due to its user-friendly platform and extensive investor network. It stands out for its diverse investment opportunities across various industries and development stages.

#2. CircleUp

Type: Equity-based

CircleUp specializes in equity crowdfunding primarily for established and high-growth startups. Founded in 2011, CircleUp has facilitated funding for over 250 companies, totalling $390 billion. It connects these startups with accredited investors, using data-driven analysis to evaluate investment opportunities. This platform aims to support the growth of consumer brands by providing access to capital and resources for startups while offering investors the opportunity to invest in promising early-stage companies.

Pricing: Commission varies based on the amount raised

Pros of CircleUp

• Limited to accredited investors for funding projects, ensuring a higher quality of backers
• High success rate for campaigns
• A rigorous acceptance process increases the chances of reaching approved campaign funding goals

Cons of CircleUp

• The stringent application process may pose a challenge
• Limited to product-centric startups for fundraising opportunities

Best for

• High-growth startups
• Early-stage startups
• Consumer product startups

Why do I like CircleUp? This platform utilizes a technology known as Helio, which predicts promising companies poised for significant growth and untapped potential.

#3. Crowdcube

Type: Equity-based

Crowdcube shines as one of the best crowdfunding sites for startups in Europe, drawing upon a large and varied investor community. It provides avenues for investors from different backgrounds to engage in both fixed-income and equity investment models.

Featuring around 15-20 highlighted companies, Crowdcube offers in-depth insights into each listing. With its established reputation for success, Crowdcube serves as a reliable option for diversifying investment portfolios.

Pricing: 7% of the platform fee, along with a completion fee ranging from 0.75% to 1.5%

Pros of Crowdcube

• Access to promising startups with a low minimum contribution threshold
• The platform manages all paperwork and tax-related matters
• Businesses are obligated to provide quarterly updates to investors

Cons of Crowdcube

• Investors must meet specific qualifications as educated investors

Best for

• Early-stage startups
• Growth-oriented startups
• Europe-based startups

Why do I like Crowdcube? Crowdcube offers financing options for seed, early, and growth stages, ensuring you can stay on the same platform as your venture expands to greater heights.

#4. Wefunder

Type: Equity-based

Among the best crowdfunding sites for startups, Wefunder operates as an equity platform, offering investors equity in exchange for funding. Additionally, startups can engage in debt crowdfunding, committing to repay the received funds. For startups anticipating venture capital investment due to rapid growth, Wefunder stands out as the premier crowdfunding platform.

Pricing: A 7.5% platform fee applies

Pros of Wefunder

• Impressive success rate of approximately 75%
• Access to supplementary resources, including legal assistance and crowdfunding support
• Wefunder maintains an inclusive stance despite its focus on equity crowdfunding for startups.

Cons of Wefunder

• Enhanced legal requirements associated with equity crowdfunding
• Not conducive for small businesses or lifestyle startups
• Stringent rules and regulations govern participation in crowdfunding on this platform.

Best for

• High-growth startups
• Tech startups
• Equity-based startups

Why do I like Wefunder? You can kickstart fundraising for your next venture in just 15 minutes by signing up for a free account.

#5. Fundable

Type: Rewards-based and Equity-based

Fundable is a thriving crowdfunding platform specifically designed for startups and small businesses. With a track record of aiding users in raising over $568 million in pledged funds, it’s a proven choice for entrepreneurs. To kickstart your journey, create a profile on Fundable and select your preferred program. For consumer-facing ventures, the rewards program offers an avenue to raise up to $50,000, enabling entrepreneurs to market their products through pre-orders and merchandise sales.

If you’re aiming for substantial investment, consider leveraging Fundable’s equity crowdfunding for startups model. This option empowers companies to secure funding ranging from $50,000 to $10 million for their products, services, or B2B-based businesses by attracting investment from accredited investors.

Pricing: $179/month; 3.5% payment fee + $0.30 per pledge; 5% platform fee for successful campaigns only

Pros of Fundable

• Equity crowdfunded campaigns can retain funding if goals aren’t met
• Low monthly flat fee for subscribers
• Access to additional resources

Cons of Fundable

• Startups can’t keep funding if goals aren’t met unless they opt for equity crowdfunding
• Platform fees are obligatory regardless of campaign success
• Limited to US-based startups only

Best for:

• Tech startups
• High-growth companies
• US-based startups

Why do I like Fundable? Fundable acknowledges the distinct approaches of B2B and B2C businesses in sourcing funding. Accordingly, the company has customized pathways for both B2B and B2C ventures to thrive on its platform.

#6. Indiegogo

Type: Rewards-based and Equity-based

Since its launch in 2008, Indiegogo has become a top choice for crowdfunding globally, with over 19,000 campaigns starting each month. It offers unmatched capabilities, flexibility, and functionality.

This platform isn’t just the go-to crowdfunding site for tech products; it’s also a hub for art projects, environmental innovations, and social impact campaigns. With Indiegogo, fundraisers gain access to expert support and exclusive partnerships. Once a project hits its goal, fundraisers can expect to receive funds within 15 days of the campaign’s conclusion.

Pricing: A 5% platform fee is charged.

Pros of Indiegogo

• Available in 235 countries and territories
• Flexible campaign requirements
• Integration with Facebook and Google for better promotion

Cons of Indiegogo

• Apart from the 5% platform fee, there’s an additional charge for third-party payment processing (typically 3% + 20 cents)
• High competition due to the large number of campaigns

Best for:

• All types of startups
• Early-stage startups
• Startups aiming for a global audience

Why do I like Indiegogo? You’ll attract a devoted group of supporters who will not only finance your project but also help spread the word to their own networks.

#7. Patreon

Type: Reward-based

Patreon is not your traditional crowdfunding site, as the platform is centred on a membership model. Established in 2013, Patreon caters primarily to artists and online content creators, including journalists, musicians, podcasters, and writers. With over 8 million monthly active members and a community of more than 250,000 creators, Patreon has facilitated cumulative earnings of $3.5 billion.

Unlike platforms centered on funding individual projects or causes, Patreon is suitable for content creators seeking to monetize their devoted audiences through a recurring revenue model. This makes it potentially the best crowdfunding site for startups in the creative field.

Pricing

• Platform fee ranges from 5% to 12% based on the subscription plan
• Standard processing fee of 2.9%, plus $0.30 per payment over $3
• Micropayment fee of 5%, along with $0.10 per payment under $3

Pros of Patreon

• Offers a monthly subscription setup
• Flexible funding options, especially for creative individuals
• Seamless integration options for campaign promotion

Cons of Patreon

• High platform fees
• Less suitable for rapidly scaling startups

Best for:

• Artistic startups
• Lifestyle ventures
• Small businesses

Why do I like Patreon? Instead of relying on algorithms that can be challenging to optimize, the platform empowers creators to take control of their monetization strategies.

#8. Kickstarter

Type: Reward-based

Kickstarter, a leading crowdfunding website for startups since 2009, has facilitated over 250,000 projects, spanning both physical and digital products. It operates on a reward-based model, offering backers incentives such as exclusive pre-order discounts or gifts. The use of tiered reward structures incentivizes backers to pledge higher amounts.

Kickstarter follows an all-or-nothing model, meaning you only receive funds and pay fees if you reach your fundraising goal. This fundraising service for startups ensures high-quality and innovative projects, as backers only contribute if the campaign succeeds. This fosters trust and garners attention from early adopters and the media.

Pricing: 5% platform fee; 3% payment processing fee + $0.20 per pledge; 5% payment processing fee + $0.05 per pledge under $10

Pros of Kickstarter

• Trusted and widely known platform
• Access to a global community of over 15 million backers
• Available in 25 countries worldwide

Cons of Kickstarter

• Highly competitive, making project approval challenging
• Projects must fit within Kickstarter’s predetermined categories

Best for:

• Art and design startups

Why do I like Kickstarter? This platform is widely recognized and trusted for fundraising for startups, and users actively seek to support new startups.

#9. GoFundMe

Type: Donation-based

Founded in 2010, GoFundMe is the largest crowdfunding platform, with over 100 million users worldwide. Its campaigns have collectively raised more than $25 billion, with over 200 million donations recorded on the platform. GoFundMe is known as one of the best fundraising sites for individuals and supports various personal causes, such as medical expenses and recovery from disasters like house fires.

Pricing: 2.9% payment fee + $0.30 per pledge; 0% platform fee

Pros of GoFundMe

• Zero platform fee, making GoFundMe service accessible
• Retain all funding received, regardless of campaign outcome

Cons of GoFundMe

• Campaigns may face stiff competition, potentially lowering success rates
• Stringent campaign requirements may disqualify many startups from participation

Best for:

• Social entrepreneurs
• Eco-friendly startups

Why do I like GoFundMe? I like GoFundMe because startups can keep all the funds they raise, regardless of their campaign’s outcome. This flexibility is crucial as it relieves pressure and allows startups to focus on their goals without worrying about meeting specific fundraising targets.

#10. Mightycause

Type: Donation-based

Mightycause, a veteran in non-profit crowdfunding, has raised over $600 million since 2006. Unlike centralized crowdfunding platforms for startups like Kickstarter or Indiegogo, Mightycause provides tools for integration into your website. It offers a fundraising page creator, donation forms, social media integration, and a CRM system for managing crowdfunding activities and generating reports.

With Mightycause, you can run unlimited peer-to-peer, team, and event fundraising campaigns without obligatory financial targets. If your fundraiser falls short, you can still utilize the donations received.

Pricing: $79 to $119 per month, depending on your plan. Up to 2.2% plus 29¢ in payment processing fees

Pros of Mightycause

• Abundant free resources for non-profits
• Lower commission rates for members
• No goal requirements

Cons of Mightycause

• Limited potential for high investment returns
• Not suitable for commercial projects

Best for:

• Non-profits

Why do I like Mightycause? The company provides not only fundraising management tools but also donor management solutions, which can be valuable for newly established non-profits.