Best Startup Crowdfunding Platforms In USA

In this article, we will explore the best investment sites and startup crowdfunding platforms in the USA. There are many investment platforms in the USA that can help raise funds to grow a startup. Let’s take a look at the top investment platforms in the USA.

What is Crowdfunding?

Crowdfunding is a modern way of raising money by collecting small contributions from many people. It allows businesses to raise funds from their existing customers or a wide network of investors on a crowdfunding platform. Crowdfunding is different from traditional fundraising, which typically relies on large investments from a few sources such as banks or venture capital firms. In exchange for their support, supporters receive various incentives. These can include early access to products, the chance to preorder, special rewards, equity, or exclusive content.

 What are the cons of Crowdfunding?

While Crowdfunding opens doors for startups to gain capital and visibility, it also has drawbacks. Running a successful campaign can be time-consuming and requires effective marketing and communications. The growing number of campaigns makes it harder for new projects to stand out. Additionally, if a campaign fails, it can harm a startup’s reputation and future funding opportunities. 

Best Startup Crowdfunding Platforms In USA

Here is the list of some of the best startup crowdfunding platforms of the USA.

1. Seedrs

Seedrs is a leading equity crowdfunding platform in the USA that connects startups with individual investors. Startups can raise capital in exchange for equity, starting with a minimum investment of £10. Seedrs charges fees for successful campaigns and provides a secondary marketplace for buying and selling shares.

The platform makes investing easy for anyone in Europe, handling all the legal details. Seedrs has raised over £1.1 billion across 1,318 deals, making it the top-ranked crowdfunding site by investment value.

2. Crowdcube

Crowdcube is a well-known equity startup crowdfunding platform that helps startups raise capital in exchange for equity. With a minimum investment of £10, startups gain access to a large network of individual investors. The platform charges a 7% fee for successful campaigns and has a secondary marketplace for buying and selling shares.

As the world’s first equity-based crowdfunding site, Crowdcube allows businesses at any development stage to pitch for funding online to a global audience. In return for their investment, backers receive a stake in the company. Over $1 billion has been invested through Crowdcube, with many listings involving established USA companies looking for growth capital. The platform is open to all types of investors, from professionals to beginners.

3. Kickstarter

Kickstarter is a rewards-based startup crowdfunding platform that helps startups raise money by offering rewards to backers. It’s popular in the creative and arts industries, with a minimum funding target of £1,000. Launched in 2009, Kickstarter is the largest platform of its kind in the U.K. and worldwide, charging a 5% fee on successful campaigns.

Kickstarter aims to help people bring creative projects to life. Backers receive the product created by the campaign, which attracts many ambitious ecommerce merchants. The platform works on an ‘all or nothing’ model, meaning you must meet your funding target to receive any money. If the target isn’t met, you won’t have to pay any fees. If successfully funded, Kickstarter charges a 5% fee and a payment processing fee of 3% to 5%.

4. Indiegogo

Indiegogo is a crowdfunding platform that helps startups raise funds by rewarding backers. It has a minimum funding target of £500 and charges a 5% fee on successful campaigns. Indiegogo is popular for its flexible funding option, which allows startups to keep the money raised even if they don’t meet their goal. The site attracts over 10 million visitors each month and supports over 800,000 projects.

Indiegogo offers two funding options: flexible funding, where you can keep all the funds raised, and fixed funding, where you must meet your goal to keep the money. Payment processing fees range from 2.9% to 4.4% depending on location.

5. GoFundMe

GoFundMe is a popular donation-based crowdfunding platform that helps startups raise money by asking for donations. There is no minimum funding target, and GoFundMe charges a fee of 2.9% plus 30p on each donation. This platform is often used for charitable causes and social impact projects.

GoFundMe has raised over £5 billion for social and medical needs and is available to individuals and charities who want to make a difference in their communities. There are no setup fees on GoFundMe. For each donation, you pay $0.30 plus 2.9% of the donation amount. Even if your campaign doesn’t reach its goal, you can keep and use all the funds raised.

6. Crowdfunder

Crowdfunder is a rewards-based crowdfunding platform that helps startups raise money by offering rewards to backers. It has a minimum funding target of £1,000 and charges a 5% fee on successful campaigns. The platform also offers support and advice to startups.

One key feature is Extra Funding, which connects eligible projects with businesses willing to match donations. For example, Aviva will match up to £50,000 for community development in the USA. This helps campaigns gain additional support and funding.

7. Fundable

Fundable is a startup crowdfunding platform for U.S. startups that allows them to offer rewards or equity for funding. It provides self-managed fundraising and support to help create pitch decks and connect with investors. Users can organise their fundraising efforts and track interest from investors.

Startups using rewards-based campaigns often attract more backers but raise less money, while those using equity crowdfunding raise more capital from fewer investors. Success in equity crowdfunding requires thorough research and resources to meet the expectations of accredited investors, such as a solid business plan and growth record.

8. SyndicateRoom

SyndicateRoom is an equity crowdfunding platform that helps startups raise funds from individual investors. It runs an EIS fund that invests like angel investors. To qualify, companies must be registered in the USA and be EIS eligible, they need to raise at least £400,000 within six months. They must be raising money for the first time or have a higher pre-money valuation than they have previously, which must be less than £16 million.

SyndicateRoom lists early-stage companies and groups projects together for investors to buy diversified bundles. They claim a potential return of £3.50 for every £1 invested, making it a fast way to secure funding. To apply, businesses must be EIS eligible and incorporated in the USA, with applications reviewed within 10 days. There is a one-off fee of 2% of the total investment, ranging from £400,000 to £5 million.

9. Crowd2Fund

Crowd2Fund is a USA crowdfunding platform that helps startups raise capital from individual investors. It offers equity and debt investment options and has a secondary market for buying and selling shares. The platform charges fees on successful campaigns and has paid out over £6 million in interest on 617 unique opportunities.

Businesses can raise funds online directly from investors without banks. This helps them access competitive financing while giving investors a chance at potentially higher returns. Crowd2Fund uses financial technology to connect investors with businesses, enabling a supportive community that can help businesses grow. Investors can receive repayments directly, leading to better tax-free returns.

10. Crowd for Angels

Crowd for Angels is a USA-based equity crowdfunding and peer-to-peer lending platform that helps startups raise capital from individual investors. It requires a minimum investment and charges fees on successful campaigns. The platform has a secondary marketplace for buying and selling shares and offers a blockchain-based issuance platform.

Founded in 2013 by professionals with finance and tech backgrounds, Crowd for Angels aims to provide a reliable and transparent investment channel. Investors can access a variety of opportunities including equity shares, crowd bonds, and digital securities. Crowdfunding has a long history, but it has become more accessible thanks to the internet.

Conclusion

Crowdfunding can be a great option for startups looking for capital. The top startup crowdfunding platforms in the U.K. offer different options such as equity crowdfunding, peer-to-peer lending, and donation-based crowdfunding. Each platform has different fees, funding models, audiences, and support levels. By considering these factors, startups can choose the platform that best suits their needs and improve their chances of a successful campaign. Investing in startups can be profitable, but choosing the right startup crowdfunding platform can be challenging due to the many options available.

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