Crowdfunding for Startups: Kickstarter Alternatives

Over the past decade, crowdfunding has changed the landscape for startups and creators in the modern economy. Through the power of the internet, anyone with an idea can access the funding needed to bring their vision to life.

In most cases, crowdfunding is seen as a new type of venture capital solution for startups and entrepreneurs. It enables them to bypass the traditional methods of acquiring capital for their project without relying on venture capitalists, banks or even angel investors.

Crowdfunding allows anyone with a good idea to raise the money needed to get their business off the ground with donations from everyday people. This makes it especially attractive to small business owners who have limited access to traditional forms of financing.

However, before you start a crowdfunding project, you’ll need to consider the various benefits, possibilities and challenges that come with it. In this article, we’ll explore some of the top Kickstarter alternatives, and what sets each platform apart.

What Is Crowdfunding?

Crowdfunding is an online platform where people can donate money to help you start your business, pay for research or support a cause. It’s typically handled through online marketplaces that enable individual donors to donate a certain amount of money to your cause.

Crowdfunding crosses the boundaries of traditional venture capital and angel investors by making capital available to the masses instead of a select few. It also makes it possible for a company or individual to quickly raise money for a project without having to wait for approval from investors or lenders.

Benefits of Crowdfunding

Crowdfunding can provide a number of benefits to startups and creators:

1. Access to Capital: One of the greatest advantages to crowdfunding lies in its ability to provide access to capital. This is especially beneficial for startups and entrepreneurs who are looking to get their projects off the ground but lack access to traditional forms of capital.

2. Validating Ideas: Another benefit of crowdfunding is that it can be used as a way to validate new ideas. Asking everyday people to back a project or idea allows one to gauge the level of interest in their project before committing resources to building it.

3. Low Risk Investment: Crowdfunding also provides investors with low risk opportunities. This is because they are generally investing small sums of money. As such, the investor is able to spread their risk across multiple projects instead of investing a large sum of money in one single venture.

4. Background Exposure: Finally, fundraising through crowdfunding can also provide a company or individual with some exposure. This can be especially beneficial for small businesses that are trying to establish their presence in a competitive market.

Top Kickstarter Alternatives

While Kickstarter is the most popular crowdfunding platform, there are many other options that can be just as effective. Here is a list of four top Kickstarter alternatives.

1.Indiegogo: Indiegogo has been around since 2008 and is the original crowdfunding platform. As one of the oldest and most successful crowdfunding sites, it’s no surprise that it’s also one of the most popular.

2. GoFundMe: GoFundMe is a great platform for personal causes. The platform allows individuals to raise money for medical bills, college tuition, volunteer trips, and more.

3. Crowdfunder: Crowdfunder is a professional platform that’s perfect for established companies. The platform was created to enable businesses to raise capital by offering equity to investors.

4. Patreon: Patreon is a great platform for creators, allowing them to raise money for ongoing projects, reward fans for their support, and even form memberships.

Challenges of Using Crowdfunding

While crowdfunding can be a great option for those who are looking to quickly raise capital, it can also be a challenge to navigate. Here are some of the potential issues that you may face when launching a crowdfunding campaign:

1. Language Barriers: Depending on where you are located and the language of your crowdfunding platform, you may face language barriers. This can be especially problematic if it’s not your native language.

2. Limited Reach: If your project doesn’t have a wide enough reach, you may be unable to gain the momentum you’re looking for. This could cause you to fall short of your fundraising goal, even if a few people did back your project.

3. Large Goal Amounts: Often, crowdfunding campaigns require a large goal amount in order to succeed. This means that your project must be marketable enough to attract a large audience in order to get the backing you need.

4. Processing Fees: Last but not least, it’s important to be aware of the processing fees associated with most crowdfunding platforms. These can eat away at your profits, so be sure to factor this into your goal amount.

Crowdfunding can be a great option for any person or company looking to raise capital quickly and with minimal risk. However, it’s important to understand the benefits, possibilities and challenges that come with launching a crowdfunding project before you get started. With this knowledge in mind, the right crowdfunding platform can be tailored to your exact needs and help you to achieve success.