Getting To Know The Ten Best Crowdfunding Websites For Entrepreneurs
Crowdfunding is basically a way of generating small amounts of funds from numerous internet as well as social media users. However, the people investing in crowdfunding do not get to own the shares or equity of the website or portal they put lend their money to. In fact, they are often not even sure of making any money through such an investment making it a highly risky investment option. In fact crowdfunding is often compared with the donations people make to contribute towards the completion of a cause or venture they feel is worth the risk.
However, with the possibility of the JOBS Act becoming a law soon, crowdfunding might no longer remain a risky investment. With this new hope in sight, numerous investors are showing a renewed interest in this scheme. Listed below are the ten best crowdfunding websites for entrepreneurs seeking maximum benefits with small investments.
Kickstarter is definitely one of the most popular crowdfunding websites not only due to the fact that it is currently having more than 63,000 projects but also because it has already managed pledged investments up to $250 million. It is also being rumored that the website might the first to help the investors get equity in return for their funds even though the top management has denied any such reports.
Having raised 15 million in funds, Indiegogo is second only to Kickstarter in the list of the most popular crowdfunding websites. The founder of the website has also reportedly confirmed that the company might start a platform to enable the investors to make equity transfers once the JOBS Act has been made into a law.
Even though Fundable started its operations only in May 2012, the company has become renowned for its rewards- based funding platform. In addition, the company also enables certified investors put their money into small businesses in return for shares. It also plans to launch its own equity platform once the law is passed.
Crowdfunder is well known for its unique approach towards fundraising. The company allows investors to vote select the best among the various ventures that it chooses for fundraising. The comapnuy also arranges a wide range of contests for local businesses in various cities to owin a funding of $25,000. In its first month only, the company had raised nearly $17 million in pledged investments.
EarlyShares is another website that has been working hard to generate awareness about the JOBS act and make people aware of its benefits. As a part of the process the company counducted a tour across the 24 cities of USA spread over 24 weeks. In addition the company also organized a startup competition at the Techweek Launch and presented the winner with $100,000worth of cash and prizes.
After having won the third place at the Philly Startup Weekend 3.0., the company received numerous investment offers. The founders of SeedInvest are three young MBA and despite being inexperienced in the field have created a niche for themselves and their organization.
Gogetfunded is a crowdfuning website that lets you raise money for anything that matters.
Relayfund has been founded by a group of entrepreneurs ,venture capitalists and also investment bankers. Even though the website has not been launched yet, it has been defined as “the next major catalyst in transforming the capital markets and connecting everyday Americans with private equity.” Furthermore it has also been claimed to be the primary online portal dedicated to the cause of second generation crowdfunding.
Although WeFuder was established in 2010 by a graduate from the MIT Sloan School of Management, the website is still in its pre-launch state. However the website claims to have the support of 6,100 willing to pledge around $16.5 million in investments.
Corwdfunding was legalized in UK some years back and hence it is really not surprising that CrowdCube, which is based in UK has already raised around £2.8 million to fund 15 companies. Even though there are no immediate plans of the company to launch in the US market, their experience would surely give them a big advantage were they to do so.