Popular Crowdfunding Websites
Crowdfunding platforms like Kickstarter, Indiegogo, and GoFundMe draw hundreds of thousands of people looking to start or support the next great thing.
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GoFundMe |
GoFundMe is the largest crowdsourcing platform. GoFundMe, which was started in 2010, has raised more than $25 billion from over 200 million donors. GoFundMe is the most popular website for those trying to recover from a medical bill or calamity, such as a house fire, natural disaster, or unforeseen emergency expense. Kickstarter is commonly used by start-up companies. |
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Kickstarter |
Kickstarter is another popular option. Founded in 2009, the platform has successfully funded about 250,000 projects, totaling more than $7.6 billion donated across all Kickstarter projects. Kickstarter is the most popular crowdfunding platform for entrepreneurs looking to generate funds and reach a broader audience. In reality, unlike GoFundMe, Kickstarter is limited to producing projects that may be shared with others. Kickstarter prohibits raising funds for charity or causes, offering incentives like equity, revenue sharing, or investment opportunities, and involving prohibited items like “any item claiming to diagnose, cure, treat, or prevent an illness or condition,” political fundraising, drugs or alcohol, contests, coupons, gambling, and raffles. |
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Indiegogo |
Indiegogo began as a crowdsourcing platform for indie films but later expanded to welcome projects from all categories. Indiegogo is seen as a less stringent and more flexible platform than Kickstarter since it allows backers to choose whether they want fixed or flexible models—this is perhaps the most significant distinction between the two crowdfunding platforms. Kickstarter only releases funds after the campaign has attained its funding goal, whereas Indiegogo allows the campaigner to get funding pro-rata or wait until the target has been met. |
As a campaigner, it may be easier and less hazardous to pursue flexible funding, such as getting donations as they arrive. However, regardless of the amount raised, campaigns must follow through on any promises made. Fixed funding is more appealing to backers since it carries far less risk.
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