Crowdfunding is growing faster than venture capital with an estimated spending of $ 34 billion by 2015.
How do you choose among the 2,000 crowdfunding platforms available around the world? We share 5 tips to choose the best crowdfunding platform.
Crowdfunding is a way of raising money for a project through a large number of people. This changes the traditional funding model by letting you connect with new supporters online.
Certain choices may be better for you. It depends on whether you help the cause you support, the entrepreneur who funded the business or started the business, or the musician raises money for the recording costs.
You should involve your private network no matter what method you use. But investors on certain sites are looking for some kind of project.
Usually, the site focuses on charitable giving, creative projects, or business ventures. Access to the new investor can definitely increase the value of your campaign.
Here are 5 things to look for when choosing crowdfunding platform:
Easy to use
If you are an individual raising money for your half marathon to support charitable activities, you should contact your private network. That means, friends, family, and others who support grassroots or certain causes.
You are looking for a platform that is easy to set up, easy for others to contribute money, and it can track many projects.
Crowdrise categorizes charity projects with civil rights and social action, education, poverty, religion, and spirituality, and so on. This helps donors who are interested in your goals for finding projects and contributing.
Cost Structure
The Crowdfunding platform may charge you an administrative fee to connect you and your donor or investor.
The crowdfunding platform you choose should have the appropriate cost structure for you and your project.
Obligations
When people give money, either to friends or cause, they usually like to be stored in circles. In addition to costs, you may need to share quarterly or monthly updates with investors.
Check the details of the agreement carefully.
Pool investors
If you fund a start-up or business venture, you’ll want to choose a suitable crowdfunding platform for your industry. Sites will not only connect you with great investors, but you may be able to build partnerships with strategic investors.
Whether you are raising money for business or charity, see what companies and non-profit organizations connect to this site. You definitely want to find a platform that has connections to companies and established charities.
For start-up technology, access to feedback from registered investors may be important.
Security
Choose crowdfunding platform with security protection for financial transactions.
But if this is a business venture, you definitely want a more legal and financial option. You may need escrow services, investor persistence, and feedback.
The best crowdfunding platform will address the specific needs of your project or campaign. Have you ever used a crowdfunding platform to raise money for a business or a cause? Please share tips in the comments?
Have you used crowdfunding to raise money for a business or a cause? Please share tips in the comments?