What is crowdfunding? An increasingly popular alternative to traditional financing and venture capital. Crowdfunding is asking a crowd of people to donate a defined amount of money for a specific cause, project in exchange for various rewards via the internet. There are three general categories crowdfunding can fall under: Equity, Donation, and Debt (dailycrowdsource.com).
The team at plantostart.com developed their Top 10 List of Crowdfunding Websites for Entrepreneurs and here’s their summary:
TOP 10 LIST OF CROWDFUNDING WEBSITES FOR ENTREPRENEURS:
A crowdfunding site for startups.
We’re all waiting to see which crowdfunding site is going to pull in the most investors since the law has passed. With more than $12,000,000 already committed in their beta, WeFunder might just take the lead and win hands down.
Crowdfunding for….well…startup addicts.
The Startup Addict crowdfunding website still appears to be fairly new, but unlike the others we’ve seen…it doesn’t have a particular niche focus other than helping Entrepreneurs get their business launched. This could be good, depending if you don’t fit into the “niche” categories other crowdfunding websites are aiming towards, like “creative projects” or “inventors”.
Crowdfunding Website for New Mobile Apps
I personally know Believers Fund’s founder, so this is a favorite of mine. They’ve narrowed down into the niche of crowdfunding new mobile apps, and have strong partners behind them like Microsoft BizSpark. Believer’s Fund also seems to have a much healthier following of “believers” (ie: funders) compared to other crowdfunding websites.
A leading Crowdfunding Website for Creative Projects.
Rockethub has definitely gotten a large following from a lot of media exposure. Because of that, there’s a lot of activity happening over there…and hey, there’s actually funders!
A Crowdfunding Website for Inventors
Quirky really fits it’s name, it’s a new crowdfunding website for the quirky types: inventors (ie: engineer types). It will be interesting to see what these inventors actually do with the product after they’re inventions are built. Maybe I’ll follow one for a while and find out.
A Crowdfunding website for Artists.
New Jelly’s crowdfunding website focuses on helping artists and films get up off the ground. An industry that’s suffering more and more everyday, I’m glad to see someone like New Jelly reach out to them.
A Crowdfunding Website to Help Fund Local Small Businesses.
This one seems to be new, so it may be a little while before we see it really take off. None the less, I love what they’re doing. It’s all about keeping things local here, and helping the small businesses.
Still wonder how this crowdfunding website will succeed though, since the majority of angel investors still try to follow in the VC’s footsteps. What’s wrong with having a portfolio of small local businesses, like restaurants?
A Crowdfunding Website for Creative Projects
Kickstarter holds the lead as the world’s largest crowdfunding website for creative projects…including: artists, journalists, inventors, and film makers. A quick review of the front page explores crowdfunding projects for a comic film, a museum, and a documentary.
A Crowdfunding Website for Social Entrepreneurs
Start Some Good is a new crowdfunding website for social good initiatives to raise funds through a community of supporters. There are many non-profit Entrepreneurs here, but also for-profit socially responsible Entrepreneurs.
A Crowdfunding Website for Entrepreneurs and their Dreams.
Peerbackers seems to be doing pretty well, and has a lot of ideas close to their funding goal. It also leverages social media to help you fund raise through peers, as well as strangers. Nice, clean interface.
Be sure to visit plantostart.com they have a wealth of information on entrepreneurship and startups. Have you considered crowdfunding for your business? Is venture capital dead with crowdfunding’s growing popularity.