The Best Crowdfunding Websites for Small Businesses and Startups in 2022

    A popular form of fundraising on social media, crowdfunding has seen a meteoric rise in the past few years. Crowdfunding across the globe is fragmented, and vendors use several organic and inorganic methods to raise funds in the market.




    What is Crowdfunding?

    Crowdfunding meaning in simple terms is raising money online. It can be for a social cause, creative pursuit, business startups, or non-profits. People use crowdfunding websites to connect the audience on social media and take support for achieving the mission. Both individuals and businesses can raise money online. There are several websites in different categories, and they take fees or processing charges. This could range between 3% to 5% per transaction or a percentage of funds raised monthly.

    Types of Crowdfunding Websites

    Crowdfunding comprises three major types – equity, debt, and reward. Reward crowdfunding is raised through supporters who, in return, get a product sample or gift if they donate a certain amount. In debt crowdfunding, it is a loan to be paid back. In equity crowdfunding, a portion of the business owner is given to the investor.

    The advantage of crowdfunding for business is that it allows a large number of investors with lower contributions rather than just a few who fund the entire venture. And it is also quicker than conventional funding.

    So, when you are looking for a website that will help you raise funds for your cause or startup venture; look for its expertise and the fees they take for the money you get from the platform.

    A brief overview of some of the best crowdfunding websites of 2022 is given below.

    • SeedInvest

    SeedInvest Technology has helped 250 startups by raising $410 million from more than 620,000 investors. It is one of the best crowdfunding for startups.

    The advantage of crowdfunding for small business platforms is that one does not have to pay fees if the fundraiser is unsuccessful. However, the startups have to undergo a process of intensive vetting, and not all are selected.

    • CrowdStreet

    The CrowdStreet platform has raised around $220 million from accredited investors only. The minimum investment here is $25,000, and more than 100,000 people invested through this platform. CrowdStreet has published more than 540 real estate commercial offerings among the real estate crowdfunding platforms since its inception in 2014.



    • Kickstarter

    Kickstarter is one of the biggest crowdfunding websites and is well known for helping creative entrepreneurs in the tech industry. So far, they have raised over $6.5 billion and raised funds for projects that have not raised any loan from banks or Venture capitals.

    • IndieGoGo

    The IndieGoGo website creates campaigns for community projects, creative works, and tech innovations. It is similar to Kickstarter, except that it is all or nothing model for fundraising.

    • Patreon

    This platform is popular among digital entrepreneurs such as YouTubers, Bloggers, and Podcasters. Here there is a subscription model instead one-time fundraising campaign. The site has more than 250,000 creators and 8 million active donors.

    Conclusion

    The above crowdfunding websites are some of the best platforms for raising large amounts of funds quickly.



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