Best Practices for Crowdfunding

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Crowdfunding, though still a new concept in the realm of small business funding, has proven to be a successful way to get their companies started or advance them forward. Basically, it is when you get a large amount of people to donate a small amount of money for any fundraiser or project. Crowdfunding sites—Kickstarter, Crowdfunder, etc—all have different models and focuses. So which platform is right for you? Check out some of the best crowdfunders for small businesses below.

Kickstarter: This Brooklyn-based site is a great place for creative people, from musicians to filmmakers to designers. If you’re trying to launch an innovative creative project, write a book or shoot an indie film, Kickstarter might be the place to… well, start.

Indiegogo: One of the most flexible crowdfunders, you can be a hobbyist, an entrepreneur, or a charity and still use Indiegogo! Their flexible approach is what enabled their international growth, along with their early start in the field.

Crowdfunder: This platform is for raising investments; its community of investors is growing quickly. Recently, Fox News presented it as the “new breed of crowdfunding” because of a company who’d earned $2,000,000,000 through it.

RocketHub: Marketing professionals and campaign owners can work together through RocketHub, using their unique FuelPad and LaunchPad programs.

Somolend: This site has actually partnered with banks, and gives investment funding by lending to small businesses in the United States. Small business owners also have the chance to bring their loved ones into the endeavor.

Microryza: This Seattle-based crowdfunding site aids science and technology related projects. It’s also perfect if you’re looking to fund academic research contributing to knowledge about global warming, or the professional knowledge base at large.

If you are going to go the crowdfunding route, it’s especially important to make sure you are prepared—that you have a staggered strategy, rather than assuming the platform will do the work for you. Here are some excellent strategy and preparation tools from Porter’s. In addition, be sure to promote your campaign imaginatively!

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