Funding your Project: The 10 Best Platforms

  • Published on Friday, 11 January 2013 00:14
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That's it!!, ..you have it, that brilliant idea to develop what you know is going to be a complete success!!.

And Now you may:

  • Need to hire some programmers as your best IT friends with high knowledge about html5, php and Javascript are working in that big IT company and do not have free time to develop that great idea with you.
  • Rent a place to build that idea.
  • Buy all the supplies needed for that project which is going to make you really rich.
  • Of course: Computers, telephones, Internet access, Electricity bill....
  • etc, etc, etc....

...Yes, you need money unless you really think you can do it all by yourself!!. So it is time to find the right funding for your project. If you are not rich, nobody in your family or friends are, then you need someone to believe, as you do, in your idea, and help you funding it. There are some platforms that will surely help you in that "show me the money" quest.

Kickstarter

is a funding platform for creative projects. Everything from films, games, and music to art, design, and technology and since it started back in April 28, 2009, over $350 million has been pledged by more than 2.5 million people, funding more than 30,000 creative projects. It is the famous one. Kickstarter projects go viral at an amazing speed.

The project creator is responsible for anything to promote his/her idea: videos, presentations, mockups, the project webpage... basically anything to get backers attention to fund the project. The majority of funding initially comes from the fans and friends of each project and who will spread the word to their friends, on the Press, on the blogs and of course in any social network: Twitter, Facebook. Obviously Kickstarter itself is also a big source of traffic as millions of people visit Kickstarter every week.

..People cannot "invest" in Kickstarter projects to make money, the backers don't get anything on return as they fund projects for fun, they believe in the idea or just because they are good people!.

If the funding and deadline goal are achieved then the credit cards of the backers will be charged, ..it is an all or nothing!!

It is the most popular crowd funding web nowadays, ...and kickstarter will take a 5% fee from every penny funded.

Check it: KickStarter Website

 

RockectHub

It specializes more in science and technology projects than other crowd funding platforms. The main differences with kickstarter is that the money granted by the fuelers will be charged even if the goal budget is not reached within the deadline time proposed by the Project Owners (known as Creatives)

RocketHub is free to join but there are some fees: A 4% fee is charged on successful projects, an 8% fee is charged on unsuccessful projects. On top of this, there is a 4% transaction fee, bringing the total to 8% & 12% respectively.

Check it: RocketHub Website

 

Indiegogo

Using this platform will guarantee that you will keep all the funding reached at the deadline day, even if it is not the goal one, similar to what happens with Rockethub. The type of projects here are...anything!!, from donating money to help with the health of Heather Thrive, to create a movie, or even Outfitting a company of IDF soldiers with winter fleeces

As it happens with KickStarter and RocketHub there is a fee based on the Project funding. A 9% on every dollar if your project don’t reach your budget goal and 4% on every dollar raised if you do reach your goal.

To encourage donors to put money in your project, use the Perk System so any funder can get something back based on the money invested. As an example some of the perks for the Volante Design (independently owned clothing design company) funders :

  • $5 (Fan): The first time the Project owner meet you in person will high five you!.
  • $50 (Artist): Receive a high quality signed print of your favorite design plus background art. This may include new art created from this campaign.
  • $10,000+ (The Medici): Receive Express orders at 50% discount, and custom orders at 35% discount for 10 years. As well as a custom designed and made jacket with a 5 Year Exclusive plan. Additionally, you will be granted VIP Prime status.

Check it: Indiegogo Website

 

Ulule

The main 2 differences compare with the ones reviewed before are:

  • There are absolutely no fees!!, ...at least by now, which is a good method to get Creators to use it
  • It is fully integrated with Paypal. Both the Project owner and the Donor need to have a Paypal account. It adds a better security in the funding process but limits completely other funding ways

You can invest as little as $1 dollar in a project, and Ulule is the first platform to offer two fundraising types : the project manager can set a budget target, or a number of objects / items to pre-sell.

Check it: Ulele Website

 

Funded by me

This swedish company is another crowd funding platform, ..although this one claims: "Our crowd has a total capacity of €74,913,408.01", ..which sounds really interesting, doesn't it?.

The funding system is very similar to KickStarter, that is, that the money raised has to be the same or more as the Budget Goal set. If this does not occur then all the money collected so far from backers will be refunded. The backer can use a credit card as well as a paypal account to donate money.

What do the backers get besides the respect from the project owner??, ..whatever the owner decides, it can be a T-shirt, it can be shares of the new company, or it just can be a greatfull "thank you", ..eveything depends on what the Creator stablished

The Fees??. Funded By Me charges 6% in administration fees, although they stated in their web that sometimes fundedbyme have campaigns where we charge less

Check it: Funded by Me Website

 

Peerbackers

This platform is specialized in Entrepreneurial projects vs creative ones that you can find in platforms as KickStarter and Rockethub, and as it happens with RocketHub, Indiegogo, Ulele, etc, the money raised will go to the Project starter even if this is under the Goal stablished

The payment method is Paypal and they charge a 5% success fee on funds raised to cover their costs., and the minimum amount of money a backer can give are as little as $5 or $10. I haven't mentioned before, but remember that paypal will take almost a 3% in all the payment transaction in any of the platforms

Again and as it happens in most of the platform you, as the entrepreneur, can set rewards to the backers based on the money they "invest" in the project

Check it: Peerbackers Website

 

InvestedIn

Here we have platform a bit different from the rest as it has different services that you can use, some of them free and others you will need to pay as to get fully branded signup and fundraising pages, CRM and CMS tools, High availability, etc...

To open a project you need to have a Bank Account or a Credit Card, and the money raised will get to you only if the budget goal is met.

The fees are very low, as low as a 3%, but then you have other rates for different services (Marketing, Production, Services, Engineering...).

I recommend this site if you want to use any of these services as I have heard they are very good at it, ...I miss though a clearer guideline of what they offer, the rates, how those services work, etc.

Check it: Invested In Website

 

Sponsume

Sponsume is open to all creative and innovative ventures, and in which the project creator need to sell perks and rewards to fans in order to fund their project.

Based on Debit or Credit card payment, the funding model is "Keep it all" funding model as an alternative to "All or Nothing" funding sites. The fee that sponsume applies is a 4%, ...lower than kickstarted, Rockethub, etc

It does a very good job explaining which are the rules in this Crowfunding platform, and with a great sense of humor as you can see in the 7 Deadly Sins of Crowdfunding. This UK platform was launched in 2010 and although it had a slow start its popularity is going high very fast...., although the name of the platform is not as "sticky" as fundedbyme or kickstarted

Check it: Sponsume Website

 

Quirky

Quirky, Quirky, Quirky, ...this New York based company can turn into a big hit or a complete disaster, ..yes maybe my words may sound a bit sharp, I know, ..but those are my feelings. It is not really a crowd funding platform but something close to a Business incubator based on sucessfull ideas based on votes from participants.

The intro video keeps everybody attentions, ..It is very important the intro videos, ..very important!! and the guys from Quirky know this perfectly

Great widgets have been developed so far, and more to come for sure, ..but somehow I like more the crow funding platforms than this one just because once your project has started then all the revenues are for you and your team and investors forgetting completely about the platform who helped fundraising the project

Check it: Quirky Website

 

Crowdcube

Crowdcube helps the UK's entrepreneurs and business pioneers come together in this "all target amount raised or nothing" funding platform. Based in UK and with UK users as targets, you may Benefit from EIS and SEIS tax relief.

The minimum amount to fund is 10 pounds. For a limited period Crowdcube are waiving our £250 listing fee. When an Entrepreneur successfully raises their Target amount Crowdcube will deduct a success fee of 5% of the target amount. Crowdcubealso pass on legal fees of £1750 for completion of each company investmenT

Check it: Crowdcube Website

..There are more funding sites and depending on your type of project and you can find very focalized platforms, ...as SellaBand for bands, but this 10 are the most important ones, ..which will you use?....

 

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