Crowdfunding is an innovative way to raise money from a large group of personal investors. You can use crowdfunding to raise funds from your existing audience or a crowdfunding platform’s active investors.
Crowdfunding is more than an online fundraising strategy—it’s a movement. In 2024, crowdfunding will add $1.03 billion to the US economy, with the average crowdfunding campaign raising nearly $8,000.
Crowdfunding also lets you test new products and gauge demand for content ideas. You can trade perks like preorder rights, gifts, exclusive access, and equity for financial support.
Read on to learn what crowdfunding is and discover the top 10 crowdfunding sites for funding your business, product, content creation, or nonprofit project.
What is crowdfunding?
Crowdfunding is a method of raising capital where numerous individuals contribute small amounts of money to support a business. This contrasts with traditional fundraising, which typically involves securing large investments from a limited number of sources, such as accredited investors or venture capital firms.
📚 Read: How To Do Crowdfunding: With Expert Tips and Examples From Successful Campaigns
How does crowdfunding work?
Crowdfunding “backers” are offered incentives in exchange for their donations and support. Incentives can include:
- Early access to purchase a product, possibly at a discount
- The chance to preorder a product and contribute feedback to its development
- Exclusive rewards like ongoing discounts, enhanced customer loyalty status, or free merch
- Access to the founding team or other crowdfunders
- Equity
- Exclusive content
In exchange for hosting crowdfunding campaigns, crowdfunding sites charge platform, transaction, and payment processing fees.
Crowdfunding sites’ features, fee structures, and user bases vary, but their core concept prevails: You submit your project to the platform, complete with fundraising target and deadline, and then campaign for support.
Considering crowdfunding as a fundraising strategy? Here are some of the best crowdfunding websites in 2024.
10 best crowdfunding platforms
- Best overall: Kickstarter
- Runner-up: Indiegogo
- Best for small businesses: Fundable
- Best for Shopify stores: Crowdfunder
- Best for content creators: Patreon
- Best for UK and Europe: Crowdcube
- Best for personal fundraising: GoFundMe
- Best for nonprofits: Mightycause
- Best for real estate crowdfunding: CrowdStreet
- Best for high-growth startups: StartEngine
1. Kickstarter
Best overall crowdfunding platform
As one of the best-known online fundraising platforms, Kickstarter is synonymous with crowdfunding. Since its launch in 2009, the Kickstarter community has funded more than 250,000 projects—including physical and digital products.
Kickstarter is a reward-based platform. Fundraisers incentivize potential backers with exclusive preorder discounts, gifts, and shoutouts; sometimes they createtiered reward structures, compensating bigger pledges with better rewards.
Kickstarter campaigns are all-or-nothing: You only receive your funds (and pay Kickstarter’s platform fee) if you meet your fundraising goal. If you fall short, then all the money stays with your funders.
Projects on Kickstarter tend to be high-quality and novel—creative or innovative enough to catch the attention of early adopters and reporters. Backers tend to trust Kickstarter projects, knowing they don’t pay unless a campaign succeeds.
Read Kickstarter crowdfunding success stories from Rockwell Razors, SaniKind, and LastObject.
Fees: Successful projects cost a 5% platform fee plus transaction fees between 3% and 5%, plus 30¢ per pledge. Pledges of less than $10 cost a discounted micro-pledge fee of 5% plus 8¢ per pledge.
Pros:
- Large, active community
- All-or-nothing model encourages donations
- Ideal for creative projects
Cons:
- No funds unless goals are met
- 5% fee plus transaction costs
- Not for personal causes or charities
2. Indiegogo
Runner-up crowdfunding platform
Indiegogo is a crowdfunding platform that supports businesses, artists, and nonprofits. Like Kickstarter, it comes with user-friendly tools and campaign options.
The biggest difference between the platforms is that Indiegogo lets you choose a flexible or fixed funding goal. With flexible funding, you receive your pledges regardless of whether you’ve met your target by deadline.
The flexible funding option is handy for multi-stage projects because you can fulfill some of your commitments to backers using a portion of their investments. This means you can get to work even if you weren’t able to fund the entire campaign.
Indiegogo’s InDemand feature maintains momentum so you can continue raising money after the campaign ends. This can be useful for funding extra production or fulfillment costs or for expanding your audience after a product launch.
Fees: Indiegogo charges a 5% fee on all funds raised for your campaign. There’s also a transaction fee of 3% plus 20¢.
Pros:
- Flexible funding options
- Wide range of project types
- Ongoing fundraising
Cons:
- 5% fee plus transaction fees
- Smaller community than Kickstarter
- Flexible option risks underfunding
💡 Shopify store BodyBoss transitioned to Indiegogo InDemand after a successful Kickstarter campaign.
3. Fundable
Best crowdfunding platform for small businesses
Fundable is part of the Startups.com platform and is among the top crowdfunding sites for US startups to exchange rewards, including equity, for funding.
The platform offers self-managed fundraising and options for campaign support—Fundable will help you create a pitch deck and identify prospective investors. You can also use it to organize fundraising activities and track investor interest.
According to Fundable, startups that offer rewards typically raise fewer funds but get more backers. Meanwhile, equity crowdfunding usually raises more capital from fewer investors.
To succeed with equity crowdfunding, you must provide all the background materials accredited investors expect, including a record of growth, a pitch deck, and a solid business plan.
Fees: $179 per month, with no success fees.
Pros:
- Flexibility to offer rewards or equity
- Built-in campaign support
- Startup- and small business-friendly
Cons:
- High monthly fee
- Complex signup requirements
- Equity crowdfunding requires extensive financial disclosure
4. Crowdfunder
Best crowdfunding app for Shopify stores
If you already have a Shopify store and want to crowdfund a product through your website, consider the Crowdfunder app.
Most crowdfunding platforms and donation apps require that you use their website for your campaigns. Crowdfunder bucks this trend by letting you turn website product pages into crowdfunding pages, complete with progress bars, progress trackers, and preorder buttons.
Crowdfunder enables crowdfunding in its simplest form: accepting customer preorders to validate ideas and fund production. Plus, you pay a predictable monthly fee instead of the commissions charged by third-party platforms.
Use Crowdfunder to gauge customer interest, test new product ideas, raise money for a cause, or launch a limited-run product.
Fees: $24 per month.
Pros:
- Easily transforms product pages into crowdfunding pages
- Perfect for Shopify store owners
- Monthly fees, not percentages
Cons:
- No community or marketplace
- Only for Shopify stores
5. Patreon
Best crowdfunding platform for content creators
Patreon is built with digital creators in mind, and worth considering if you’re a podcaster, musician, game developer, or videographer.
While most crowdfunding sites support limited-run campaigns, Patreon works on a subscription basis. Creators develop membership programs for their fans, who pay to access exclusive perks among a community of like-minded patrons.
Creators and internet personalities can use Patreon to monetize their audiences and generate recurring revenue. You can choose for patrons to pay per month or per creation. Creators can also accept payments with:
- Credit card
- Apple Pay
- PayPal
- Venmo
Patreon creators offer all kinds of exclusive perks based on different payment tiers, such as access to gated content, branded merch, sneak peeks, shoutouts, and more. The site supports various integrations to support content on the platform. You can upload videos, host livestreams, and run forums or newsletter groups for your patrons.
Fees: Between 8% and 12% of the income you earn from Patreon, depending on your plan. Plus, processing fees of up to 6% plus 10¢ depending on payment method.
Pros:
- Ideal for subscription-based funding
- Allows community building
- Supports various integrations
Cons:
- Not for one-off projects
- 8% to 12% fee
- Building a patron base takes time
💡 Learn how content creators Wait But Why use Patreon for monetization.
6. Crowdcube
Best crowdfunding website for the UK and Europe
Business owners outside the US should check the terms and conditions of the crowdfunding platforms listed so far to ensure they qualify to use all their features.
Unlike the sites above, Crowdcube is a UK-based equity crowdfunding platform built for European businesses. You can set up several types of equity crowdfunding using Crowdcube, including private and follow-up rounds.
Like Fundable, Crowdcube supports common tasks such as managing follow-up rounds and distributing dividends.
Crowdcube hosts relatively few campaigns. Still, companies that are approved and succeed with their fundraising goals on the platform can join Crowdcube’s Funded Club, enjoying exclusive benefits from partner organizations.
Promote your pitch to solicit investors from your network or to appeal to Crowdcube’s established community.
Fees: 7% of the amount successfully raised, plus a 0.75% to 1.5% completion fee and payment processing fees of up to 2.9%.
Pros:
- Created for European businesses
- Different types of equity crowdfunding allowed
- Exclusive benefits for successful campaigns
Cons:
- 7% fee plus other charges
- Unsuitable for businesses outside Europe
- Relatively few campaigns
7. GoFundMe
Best crowdfunding site for personal fundraising efforts
GoFundMe is a free crowdfunding platform primarily intended to fundraise for individuals, charitable causes, and community projects.
Because GoFundMe is suited to personal fundraising, anyone can create a campaign. Backers on the platform tend to support campaigns originating from personal networks, local communities or causes linked to their interests (like funding a youth sports facility renovation).
However, campaigns that gain momentum can attract a broader pool of backers. Even if campaign visitors don’t donate, they might share your profile and boost its reach.
Unlike other crowdfunding websites, GoFundMe isn’t designed for commercial activities. But if you’re a small business owner facing difficulties, or you need to raise money toward overcoming a personal challenge, try GoFundMe.
Fees: No platform fee for fundraising campaigns, just 2.9% plus 30¢ payment fee.
Pros:
- Ideal for charities and personal fundraising
- No platform fee
Cons:
- Not for commercial projects
- Success often depends on personal networks
8. Mightycause
Best crowdfunding site for nonprofits
Since its inception in 2006, Mightycause campaigners have raised more than $600 million for nonprofit causes.
Instead of a centralized platform, Mightycause offers tools and features you can use on your website. There’s a fundraising page creator, donation forms and buttons, and social media, email, and SMS integrations. A CRM system generates reports and offers a visual overview of activities.
You can run unlimited peer-to-peer, team, and event fundraising campaigns with Mightycause. Campaigns aren’t required to meet set goals, so if your fundraiser doesn’t reach its target, you can still use the donations you receive.
Fees: $79 to $119 monthly, depending on your plan. Up to 1.9% plus 49¢ in payment processing fees.
Pros:
- Includes tools for nonprofit crowdfunding
- No goal requirements
Cons:
- High monthly fees
- Not for commercial projects
9. CrowdStreet
Best for real estate crowdfunding
CrowdStreet offers individual investors the opportunity to contribute funds to real estate projects. So far, it has serviced $4 billion and counting in investments.
Real estate sponsors can apply for access to the platform’s marketplace and raise passive capital for their construction or financial projects. CrowdStreet also supports projects with investor management services and provides a digital marketing campaign for pitches.
As a niche crowdfunding platform, CrowdStreet is best suited to established real estate firms dealing in commercial properties. The platform’s annual market outlook report signals the project types with the most investor interest.
Fees: Specific fee structure varies depending on the deal.
Pros:
- Real estate-specific platform
- Investor management and marketing support
Cons:
- Only for established real estate firms
- Thorough vetting process
10. StartEngine
Best equity crowdfunding site for high-growth startups
StartEngine is an equity crowdfunding platform where you can raise capital through the site’s network of more than 1.8 million prospective investors.
In order to open investment to the public, StartEngine allows fundraising through Regulation Crowdfunding (Reg CF), an exception to SEC regulations enabling companies to raise up to $5 million. While this process is more streamlined than traditional methods of raising funds from accredited investors, it still has strict financial and legal requirements.
Fortunately, StartEngine provides the financial review and legal documentation necessary to launch a Reg CF campaign. Companies can save on costs and infrastructure by capping their fundraising at $107,000, under the threshold that requires extensive financial reporting.
StartEngine is best for startups that have already demonstrated a growth potential and can invest upfront funds into their crowdsourcing campaign.
Fees: Varies. Between 5.5% and 13% commission.
Pros:
- Equity crowdfunding platform
- Financial review and legal documentation provided
Cons:
- Extensive preparation and documentation required
How Shopify created this list of crowdfunding sites
Creating a list of the top crowdfunding platforms required a deep dive into the world of crowdfunding. More than 20 platforms were considered, including well-known names and niche services.
The goal was to provide a comprehensive list catering to various founder and investor needs, including personal causes, business ideas, nonprofits, and startups.
Each platform was evaluated by these key factors:
- Usability. Ease of use was a top consideration. For example, Patreon’s user-friendly interface for content creators and their fans was a standout feature.
- Pricing. The cost of using the platform was another major factor. Platforms like Crowdfunder, which charges a predictable monthly fee, were preferred over those with complex fee structures.
- Tools. Tools and features were also considered. For instance, Mightycause’s fundraising and donation management features were particularly impressive.
- Success rate. The success rate of campaigns on each platform was also taken into account. Platforms known for high project success rates were preferred
- Post-investment support. Platforms like Indiegogo, which offer features like InDemand to keep momentum going after a campaign ends, were highly regarded.
- Investment options. The variety of investing options available to backers was also considered. Platforms offering multiple ways for backers to contribute were prefered.
Benefits of using crowdfunding for your project
There are plenty of advantages and disadvantages to crowdfunding. Some of the top reasons to consider it include:
Access to diverse funding sources
Funding your business idea or project doesn’t have to mean begging banks or sweet-talking investors.
Crowdfunding lets you tap into thousands of potential backers who might love your idea. You can get support from a global community that believes in what you’re doing. Some investors may even become loyal customers.
Validate your business idea
If people are willing to put their hard-earned cash behind your project, you have proof that there's demand for what you're offering.
It’s better than guessing whether people will like your product or service. You can also use feedback to tweak and improve your idea before going all in.
Enhance visibility and marketing efforts
Crowdfunding is primarily about fundraising, but it’s also a great way to market your product.
Your project gets exposure to a massive audience who might never have found you otherwise. When people back your project, they often share it with their networks, creating a word-of-mouth effect.
When a campaign builds buzz, it connects you with your target audience, creating a community around your brand before you even launch.
Raise money for your business today
By reaching out to investors, potential customers, or fans, crowdfunding offers an accessible way to raise money to start a business or speed up product development. In addition to crowdfunding, small business grants can provide valuable funding without repayment requirements.
Many Shopify merchants have seen their business take off thanks to the funds raised via the crowdfunding sites on this list. Crowdfunding could work for you if you can promote your product idea and pitch your campaign to the right people.
You can also consider raising capital by combining crowdfunding with other forms of fundraising, such as small business loans and Shopify’s own investment program, Shopify Capital.
Illustration by Rose Wong
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Crowdfunding sites FAQ
Are there legal requirements for crowdfunding?
Yes, crowdfunding platforms and campaigns must comply with specific SEC regulations, particularly when offering equity or investment opportunities. For donation and reward-based crowdfunding, you must follow tax reporting requirements and deliver on your promised perks or rewards to avoid legal issues.
What are the advantages of crowdfunding?
Crowdfunding offers numerous benefits to small businesses looking to raise money. It provides fast access to capital, serves as a marketing tool, offers proof of concept, and introduces early adopters to your products.
Do you pay back crowdfunding?
Different types of crowdfunding require different payback methods:
- If you use donation crowdfunding (i.e., GoFundMe), you don’t have to pay back the money.
- If you fundraise with exchange crowdfunding—asking for money and giving something in return—you must fulfill your obligation.
- If you raise money through equity crowdfunding, you don’t need to pay investments back, but you must share revenue with investors.
Which crowdfunding sites are the best?
- Kickstarter
- Indiegogo
- Fundable
- Crowdfunder
- Patreon
- Crowdcube
- GoFundMe
- Mightycause
- CrowdStreet
- StartEngine
What’s the difference between Kickstarter and Indiegogo?
The biggest difference between Kickstarter and Indiegogo is when you get your money. Kickstarter gives you funds only after the campaign reaches its fundraising goal. Indiegogo lets you receive funds as they get donated, or you can wait to see if you reach your target.
*Shopify Capital loans must be paid in full within a maximum of 18 months, and two minimum payments apply within the first two six-month periods. The actual duration may be less than 18 months based on sales.