Crowdfunding via the internet is the latest craze to hit the startup world. Also called equity crowdfunding or hyper funding, internet crowdfunding allows business owners to pitch their idea to a virtual audience who decide whether or not to support the effort by pledging money and other resources.
The phenomenon is proving to be not just a fad. According to growthink.com, $100 million USD was pledged in 2011 on the site Kickstarter.com alone, launching over 27,000 projects at a 46% success rate. From 2010 to 2011, the number of launched projects are up more than 2x, successful projects tripled, and dollars pledged and total visitors grew to nearly 4x in one year. Businesses are using crowdfunding sites to jumpstart not only their new ideas, but to expand into new markets as well.
Here are top 7 crowdfunding sites you can use to garner support for your business.
1. Kickstarter – The largest of the crowdfunding sites, Kickstarter will put your idea in front of a large audience. Notable projects include Pebble Watch and The Glif (see case study)
2. Indiegogo – Headquartered in San Francisco, CA, Indiegogo specializes in funding campaigns in the areas of arts, film, music, and non-profit organizations
3. RocketHub – Fundraising platform raises funds and awareness for projects primarily in fashion, music, theatre, writing, and photography
4. Pozible – Pozible has its roots in Australia but has since branched out to regions like the UK and crowdfunds artists, filmmakers, and social advocates
5. Peerbackers – A more recently founded site, Peerbackers takes 5% of funds raised for projects by their site
6. Wefunder – One of the main backers behind the Crowdfund Act passed in April 2012, Wefunder investors have pledged over $17 million to date
7. Startup Addict – Startup Addict is a crowdfunding platform that focuses on Real Estate in addition to traditional crowdfunding areas
Have an idea you’d like to get crowdfunded? Read our Kickstarter white paper on how to turn your product idea into reality.
Already have a crowdfunded product? You’ve got the first hurdle out of the way. All you need to do is outsource your logistics so you can focus on what matters: Product, sales, and marketing. See how Shipwire can help your business.
Posted by:
Charlie Liang
Charlie builds and greases Shipwire's marketing engine, helping future customers discover how they can optimize their logistics and grow their business internationally by using Shipwire's market-leading order fulfillment and order management solutions. His experience includes demand generation at Adaptive Planning and operations for Google Product Search. Charlie earned a BS in Management Science and graduated with distinction from the University of California, San Diego (UCSD). In his spare time, he enjoys playing poker, basketball, and travelling to places where the weather is warm.
Monday, September 17, 2012 at 7:54 am
Any idea why 40billion isn’t on here? Looking to use their site and want to know if there is a reason it didn’t make the top 7.
Monday, September 17, 2012 at 11:41 am
Luke, the list above is meant to be a suggestion for sites you should consider if you’re looking to launch your business. The critieria for inclusion was based on community consensus and volume raised.
Although they didn’t make our list, 40Billion has raised $25MM+ to date and is a good candidate to consider as well.
Wednesday, February 13, 2013 at 9:43 pm
Kickstarter does not accept Real Estate projects and Startup Addict appears to be down.
Mmmm.
Tony
Sunday, March 3, 2013 at 3:18 am
I enjoy the valuable data you give in your articles.