Comparison of crowdfunding services
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Crowd funding web sites (alternately: crowdfunding, crowd financing, equity crowdfunding, or hyper funding) provide a service to allow the collective cooperation, attention and trust by people who network and pool their money and other resources together to support efforts initiated by other people or organizations.
Crowd funding pertains to donation based fundraising for businesses or creative projects, typically via an online funding portal. Hyper Funding pertains to equity based fundraising, whereas equity ownership in a business is given in exchange for investment capital via an online funding portal as per the Jumpstart Our Business Startups Act (alternately the JOBS Act of 2012).
Funding models
Crowd-funding of startups splits into two broad categories - in one model, money is given in return for actual goods or services, in another it's a more conventional venture-capital market for interest-bearing loans or investment with equity.
Money for goods
There are two basic models provided for - some sites offer a choice between the two:
- All or Nothing (AoN), sometimes called the Street Performer Protocol - When the fund-raising period is over, pledged money is only collected from the contributors if the fundraising goal is met. If the goal is not met, no money is collected.
- Keep it All (KiA) - No matter whether the project goal is met or not, all of the funds collected (minus commission) are handed over to the entrepreneur. If he or she has insufficient funds to meet the objectives, then it is up to the recipient to refund them to the contributors.
| Name | URL | Funding model |
Focus | Notes |
|---|---|---|---|---|
| ArtistShare | http://artistshare.com | KiA | Musicians | Has own record label. Owns patent on crowdfunding. |
| ChipIn | http://chipin.com | KiA | ||
| Crowdbackers | http://crowdbackers.com | AoN | ||
| Crowdfunder | http://crowdfunder.co.uk | AoN | ||
| Fondomat | http://fondomat.com | KiA | Creative | |
| Fundable | http://fundable.com | AoN | Startup businesses | Specializes in obtaining pre-seed funding for startup businesses. |
| Fundageek | http://fundageek.com | AoN | Technical innovation & scientific research |
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| FundedByMe | http://www.fundedbyme.com/ | AoN | ||
| Funding4Learning | http://funding4learning.com | KiA or AoN | Educational projects | |
| GoFundMe | http://gofundme.com | KiA | Helping people after accidents & illnesses |
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| Gogetfunding | http://gogetfunding.com | KiA | ||
| Hivelaunch | http://hivelaunch.com | AoN | Community-focused Project and Equity funding | |
| Indiegogo | http://indiegogo.com | KiA or AoN | ||
| InvestedIn | http://invested.in | KiA or AoN | Open to any project anywhere in the world | Also offers a white label crowdfunding platform |
| Ipledg | http://ipledg.com | AoN | ||
| Kapipal | http://kapipal.com | KiA | ||
| Kickstarter | http://kickstarter.com | AoN | ||
| Loudsauce | http://loudsauce.com | AoN | Social awareness advertising campaigns |
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| Microryza | https://www.microryza.com/ | AoN | Science Research | |
| Mobcaster | http://mobcaster.com/ | AoN | Television pilots and series | Also an online television channel (Mobcaster TV) |
| Myfreeimplants | http://myfreeimplants.com/ | AoN | Cosmetic surgery | Focused on breast augmentations. International |
| Neighbor.ly | http://neighbor.ly/ | KiA or AoN | Civic Projects | Specializes in raising local match for securing federal and state grants |
| Offbeatr | http://offbeatr.com/ | AoN | adult creative projects | Uses a community voting model prior to project launch, to generate investment and gauge community interest in potential project |
| Pushfunder | http://pushfunder.com/ | KiA | Startups & Small Businesses | Offers royalties, non-financial rewards, debt & equity[1] |
| Peoplefund.it | http://peoplefund.it | AoN | Attached to Hugh Fearnley-Whittingstall | |
| PleaseFund.Us | http://pleasefund.us | AoN | ||
| PledgeMusic | http://www.pledgemusic.com | KiA | Musicians | |
| Pozible | http://pozible.com.au | AoN | Creative | Australian site, now international |
| Rock The Post | http://rockthepost.com | AoN | Entrepreneurs and Small Businesses | |
| RocketHub | http://rockethub.com | KiA | ||
| Sellaband | http://sellaband.com | AoN | Musicians | |
| Sponsume | http://sponsume.com | KiA | ||
| START.ac | http://START.ac | KiA or AoN | Entrepreneurs, Startup Businesses, Gadgets, Altruistic, Kids, International | |
| TenPages.com | http://www.tenpages.com | KiA | Books | In Dutch |
| USA Projects | http://usaprojects.org | AoN | Artists | Donations are tax deductible |
| Weeve | http://weeve.it | KiA | Nonprofits | Site operates "freemium" model without transaction fees |
| Mimoona | http://mimoona.co.il | KiA or AoN |
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Loans and equity
These are more conventional Venture capital arrangements - but organized more informally with large numbers of small investors:
- Equity - Investors are essentially taking some equity in the company that is requesting funds.
- Loan - Lenders' money is loaned to the entrepreneur who has to repay it (typically, with interest) later.
- Other - There are a number of other schemes in use which are generally unique to particular services.
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