Beyond Kickstarter: 10 Niche Crowdfunding Platforms for Startups | Entrepreneur (2024)

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When most entrepreneurs think about raising money online, hopping on Kickstarter is probably what comes to mind. But, the big brand name in crowdfunding has its drawbacks -- most notably, that only 36 percent of its campaigns get funded. So many campaigns run on Kickstarter these days, it can be hard to stand out from the pack.

Related: My Company Raised Over $1 Million on Indiegogo -- And It Almost Killed Us

The good news? There are many alternatives, and quite a few emerging crowdfunding platforms are specialized by industry. In the real-estate sector, for instance, crowdfunding has exploded -- the site Real Estate Crowdfunding Review recently ranked over 100 platforms in the niche.

If your company fits one of the niches that has its own crowdfunding sites, it's worth considering using a specialized platform.

Curious if there's a better way to score crowdfunding money for your startup? Take a look at this list of the cream of the industry-specific crowdfunding platforms (listed alphabetically):

1. CrowdStreet

If you're building a real-estate investment business -- or developing real-estate projects -- check out the online crowdfunding opportunities on CrowdStreet. The site gives you a chance to invest in or seek funding for major commercial and residential construction projects -- recently funded developments include a Red Lion Hotel in Houston, a Colorado self-storage facility and a major condo redevelopment project in Chicago.

2. CrowdSupply

CrowdSupply focuses on funding computer hardware startups. The average amount raised here is $66,000 -- and CrowdSupply's 70 percent success rate has Kickstarter beat.

A typical recent success: Open-source video board-maker Alphamax raised almost $78,000 for its NeTV2, beating its $15,000 goal.

Related: 3 Entrepreneurs Who Raised More Than $1 Million Crowdfunding Share the Secrets to Their Success

3. Experiment

Experiment is a platform for startups looking to fund research projects in 20 different categories, from biology and computer science to political research. Most goals here are modest -- think $1,000 to $5,000 or so -- and many entrepreneurs are university-based. But, it adds up: Over $8 million has been raised, and 845 projects funded.

An example of a recent win: Orca Network raised $7,000 to study whether Northwest marine mammals carry antibiotic-resistant bacteria.

4. FundThatFlip

If your business is remodeling and reselling homes, FundThatFlip offers a place to get quick cash to fix up and resell. Investors put in a minimum of $5,000. FundThatFlip promises a five-minute application process and seven-day approvals.

5. Patreon

If your business puts out product monthly -- say, training videos or graphic novels -- Patreon is a site to explore. Unlike any other crowdfunding platform on this list, Patreon lets you solicit recurring monthly support from "patrons.' If your startup could thrive on a monthly membership model, you can earn big here.

An example is the motorcycle-safety video business MCrider. Owner Kevin Morris brings in nearly $12,000 per month from over 2,600 patrons with his monthly video releases, special events, forums, and more.

Related: 3 Mistakes to Avoid When Running a Crowdfunding Campaign

6. PledgeMusic

If your business involves making music, PledgeMusic is the platform for you. Over 50,000 artists connect directly with over 3 million fans to earn here, offering downloads, limited-edition releases, private concerts, signed vinyl, posters and other promo items.

It's not just used by unknowns trying to break out, either. On a recent viewing, a limited-edition Willie Nelson album was taking preorders.

7. Seed & Spark

This movie-and-TV focused platform works a bit like Patreon, except backers can subscribe to the platform itself, as well as backing individual creators' offerings. The Seed & Spark platform invests additional funds in shows, with an emphasis on gender parity.

Over $12 million has been raised to fund over 900 shows, and Seed & Spark boasts an 85 percent campaign success rate.

8. SelfStarter

Attention techies: SelfStarter is the platform for D-I-Y coders, or as they put it, "roll your own crowdfunding." It was built by startup Apigy, after the company's own Lockitron keyless entry system was turned down for fundraising on Kickstarter.

If Ruby on Rails and Heroku are familiar tools, you can build your own crowdfunding campaign here, to host on your own site. It's open source and free to use. Goodbye, platform commissions!

Related: Study Details Why Women Entrepreneurs Have Greater Crowdfunding Success

9. Techmoola

Techmoola hosts a broader range of tech projects than CrowdSupply, taking projects in 3D printing, clean tech, electronic, software, biotech and more. Started back in 2011, Techmoola functions like major player Indiegogo -- you can elect to keep whatever you raise, or make your campaign goal "all or nothing."

This is a big-money crowdfunding site, with the average campaign pulling in $200,000 to $400,000, Techmoola states. On a recent visit, payment systems were being updated -- check back to see if you can submit a new campaign. Bring your "A" game: The site states only 3 percent of submissions are accepted.

10. Women You Should Fund

Traditional venture capital tends to be a man's game. Women entrepreneurs tend to get a tiny fraction of that investor money -- and Women You Should Fund hopes to do something about it. Brought to you by the digital hub Women You Should Know, the site offers to help promote your campaign through its extensive social network.

Many campaigns here have a social mission, such as ending domestic violence. But, there are straight-ahead business startups here too, such as the Cheese Grotto, a cheese-storage system that raised $8,000 for cheesemaker Jessica Sennett.

Consider your country.

If you're outside the U.S., don't ignore country-specific crowdfunding platforms that could help you attract patriotic investors who want to help build the local economy. Examples include Canada's GoTroo or the U.K. platform CrowdCube. Both sites host equity crowdfunding campaigns, in which investors acquire a small stake in your startup in exchange for their cash.

There are many flavors of crowdfunding, so be sure to investigate any platform you're considering for a crowdfunding campaign. Ask successful funders for tips, ask platform staff questions, and plan carefully before you launch.

Beyond Kickstarter: 10 Niche Crowdfunding Platforms for Startups | Entrepreneur (2024)

FAQs

Beyond Kickstarter: 10 Niche Crowdfunding Platforms for Startups | Entrepreneur? ›

About 24 percent of projects are fully funded. Based on these numbers, crowdfunding for a small business can be successful and help your business raise money without traditional debt. Before trying it for your business, learn about the benefits, hazards and regulations unique to this fundraising method.

What is the best crowdfunding platform? ›

Best Crowdfunding Sites for Your Next Project
  • Best Overall Crowdfunding Site: GoFundMe.
  • Best Crowdfunding Platform for Nonprofits: Classy.org.
  • Best Crowdfunding Site for Individuals: Fundly.
  • Best Crowdfunding Site for Startups and Small Businesses: Indiegogo.
  • Best Crowdfunding Site for Creators: Kickstarter.
Mar 19, 2024

Should I crowdfund my startup? ›

About 24 percent of projects are fully funded. Based on these numbers, crowdfunding for a small business can be successful and help your business raise money without traditional debt. Before trying it for your business, learn about the benefits, hazards and regulations unique to this fundraising method.

Do you pay back crowdfunding? ›

Donation crowdfunding: Donation crowdfunding does not require the recipient to repay the funds. This crowdfunding type is typically geared toward charities and nonprofits. Debt-based crowdfunding: With debt-based donations, you'll repay the money with interest.

How do I get crowdfunding on my startup? ›

How to crowdfund a business in 7 steps
  1. Solidify your ideea. The entire ethos of crowdfunding is securing money from as many parties as possible. ...
  2. Identify your audience. ...
  3. Develop and share your story. ...
  4. Set your funding goals. ...
  5. Promote your campaign. ...
  6. Focus on transparency. ...
  7. Ask for and listen to feedback.
Feb 12, 2024

What is the #1 fundraising platform for crowdfunding? ›

With no fee to start, GoFundMe is the world's leading crowdfunding platform—from memorial tributes and funerals to medical emergencies and nonprofits. Whenever you need help, you can ask here.

Who is GoFundMe's biggest competitor? ›

However, while it may be the largest fundraising platform, that doesn't mean it's the best.
PlatformRankingFor
Fundly#1All causes
Bonfire#2All causes
Double the Donation#3All causes
IndieGogo#5Charitable causes
10 more rows

Is crowdfunding free money? ›

Fundraisers are usually charged a fee by crowdfunding platforms if the fundraising campaign has been successful. In return, crowdfunding platforms are expected to provide a secure and easy to use service. Many platforms operate an all-or-nothing funding model.

What is the success rate of startup funding? ›

Approximately 60% of companies do not advance to Series A, resulting in a success rate of only 30% to 40%. Around 65% of Series A startups secure Series B funding, while 35% do not. During the Maturity Stage, the likelihood of failure is just 1 out of 100.

What is the failure rate of crowdfunding? ›

60-70% failure rates, respectively). And there are still a few years to go to see how the industry and investments mature before we might expect to start seeing some massively successful exits for investment crowdfunded companies.

Can you crowdfund for yourself? ›

We often get asked if an individual is able to crowdfund with us, and the answer is yes, you can! Individuals often raise money on Crowdfunder for personal causes, or to help fund the beginning stages of an idea when a business or charity bank account is not available quite yet.

What happens to money if crowdfunding fails? ›

This means that if a campaign doesn't hit its funding goal, all the pledges are canceled and the project creator doesn't receive any of the pledged funds. All the money pledged by backers is returned to them and no money exchanges hands. It's not an ideal situation, but creators should be prepared for this outcome.

Which is the simplest business? ›

Business ideas that are easy to start quickly
  1. Yard work. People with 9-to-5 jobs don't always want to spend their weekends doing yard work. ...
  2. Software training. ...
  3. Homemade soap making. ...
  4. Errand service. ...
  5. Social media management. ...
  6. Freelance services. ...
  7. Selling on eBay. ...
  8. Pet sitting.

What is the best business to start from home? ›

  • Launch a photography business. ...
  • Start a beauty business. ...
  • Start an affiliate marketing business. ...
  • Start a day care. ...
  • Sell on marketplaces. ...
  • Become a social media manager. ...
  • Become a virtual personal trainer. ...
  • Offer bookkeeping services. If you're good with numbers, an at-home bookkeeping business might be the way to go.
Jan 23, 2024

How do I withdraw money from crowdfunding? ›

How to make a withdrawal:
  1. You should see a list of all your pages on the next screen. ...
  2. If you're on a laptop or desktop, simply click the "Payments" tab on the left column of your Dashboard:
  3. On the next screen, you should then see a "Withdraw funds" option, where you can withdraw any available funds. ...
  4. Your withdrawals:

Is there a better website than GoFundMe? ›

BetterWorld. BetterWorld tops the list of GoFundMe alternatives for several reasons. The first reason is its flexibility. In addition to hosting a crowdfunding campaign, you can also do a variety of other fundraisers, including online auctions, giveaways, peer-to-peer fundraising events, and monthly giving arrangements ...

What is the downside of GoFundMe? ›

Transaction fees: GoFundMe transaction fees can be up to 8% per donation. Payment delays: Depending on your payment processor (i.e PayPal or WePay), payments can take up to 7 days to 30 days before being made available for use by campaigners via their GoFundMe account dashboard.

What is the difference between GoFundMe and crowdfunding? ›

Rewards-based: Through rewards-based crowdfunding on platforms like Indiegogo and Kickstarter, the fundraiser organizer provides a reward or products to donors, usually a service or physical item, in exchange for a contribution. Note: GoFundMe only allows donation-based crowdfunding.

What percentage of donations does GoFundMe take? ›

GoFundMe is a for-profit company. It charges a 2.9% payment-processing fee on each donation, along with 30 cents for every donation. That means if a campaign raised $1,000 through 10 donations of $100 each, GoFundMe would collect about $32.

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