Crowd funding has been all the craze lately with thousands of people, from all different walks of life, raising money every day for their business venture or special cause. Many use the various crowd funding websites available to increase not only monetary investments for their fundraisers, but also awareness.
There are two models that are currently being used which are donation-based funding and investment crowd funding. Depending on the type of venture you have available, it is necessary and important to know the difference between the both.
Donation-based allows strangers to offer as much money as they’d like without the expectation of rewards or return investment. The second model, investment crowd funding is where people can buy stakes in the new company in the forms of equity.
Now, that we have become more acquainted with the two model types, here are the top 5 crowd funding websites of 2015.
Kickstarter is the most known donation-based funding site among artists of every kind. It provides the creative types with a way to raise money for a certain project they’d like to see come alive. Kickstarter is not meant for those seeking money to be used for businesses, charities, personal financing or any cause.
Indiegogo is a donation-based fundraising website for practically anything you can think of. Because of the freedom the site offers to the public, they have seen international growth due to their vast approach.
Crowdfunder.com is used for increasing investment and has the most substantial increasing network of investors. and has a one of the largest and fastest growing network of investors. The website also offers equity crowd funding for individuals.
Crowdrise is a donation-based crowd funding site solely for charities and causes. They have gained the attention of Good Samaritans who are motivated to help others who are in need.
Another great website for the creative type, inventors and creators are free to raise donation-based funds within a community that supports new ideas. The community is able to participate in the process more openly than Kickstarter.