10 Best Fundraising Tools for Startups
Startups are constantly seeking fresh and creative methods to secure funding. From utilizing crowdfunding platforms to employing online donation tools, there exists a wide array of options for online fundraising. Numerous excellent fundraising tools are accessible to startups, enabling them to generate the necessary funds to launch their business successfully.
Kickstarter
Kickstarter, a well-known and highly popular crowdfunding platform, has gained immense popularity over the past decade. With a user base of over 15 million project backers, it has become one of the go-to websites for crowdfunding campaigns.
Key Features
Allows creators to raise funds for their projects, wide range of project categories, all-or-nothing funding model, backers can pledge money in exchange for rewards, provides a platform for creators to showcase their ideas, offers a community-driven approach to funding creative projectsPricing
5% platform fee; 3% payment processing fee + $0.20 per pledge; 5% payment processing fee + $0.05 per pledge under $10
Indiegogo
Ever since its establishment in 2008, Indiegogo has emerged as a leading crowdfunding platform worldwide, witnessing the launch of more than 19,000 campaigns every month. Indiegogo stands out for its exceptional capabilities, flexibility, and functionality. Moreover, being one of the largest crowdfunding platforms globally, it offers campaigns a vast array of investment prospects.
Key Features
Allows individuals and organizations to raise funds for their projects, ideas, and businesses, offers flexible funding options (fixed or flexible funding), provides a global reach and access to a large community of backers, offers various campaign support tools and resources, allows backers to receive rewards or perks in return for their contributions, provides a platform for creators to showcase their projects and engage with potential backersPricing
5% platform fee
StartEngine
StartEngine Crowdfunding, Inc. has emerged as a prominent player in the American equity crowdfunding sector. As per their official website, the platform has successfully generated more than $650 million in funding. This impressive amount has been raised through a strategic blend of Regulation and Regulation A+ crowdfunding, facilitated by StartEngine Primary and StartEngine Capital, their subsidiary companies. Notably, these funds have been distributed among a vast array of over 500 startup offerings featured on their platform till date
Key Features
Provides access to a large network of investors, offers various investment options, including equity and revenue share, provides tools for companies to manage their fundraising campaigns, offers investor relations support, facilitates compliance with securities regulationsPricing
7%–12% platform fee based on method of investment and fees associated
Fundable
Fundable provides startups with the opportunity to engage in both equity crowdfunding and rewards-based crowdfunding. In contrast to other crowdfunding platforms, Fundable operates on a subscription model, where users pay a monthly fee. This allows approved campaigns to raise funds without a percentage being deducted from their earnings. This unique approach is particularly advantageous for campaigns that achieve success.
Key Features
Offers a network of accredited investors, provides access to expert guidance and support throughout the fundraising process, facilitates secure transactions and investor communication, offers customizable campaign pages to showcase business details and progress, provides analytics and reporting features to track campaign performance.Pricing
$179/month; 3.5% payment fee + $0.30 per pledge; 5% platform fee for successful campaigns only
CircleUp
CircleUp is a leading equity crowdfunding platform that caters to established and rapidly-growing startups. With a history dating back to 2010, this platform has successfully facilitated funding for more than 250 companies, resulting in a staggering $390 billion raised.
Key Features
Connects investors with consumer product and retail companies, focuses on early-stage and growth-stage companies, provides access to capital for entrepreneurs, offers data-driven insights and analysis for investment decisionsPricing
Commission varies depending on the amount raised
Patreon
Patreon, a popular crowdfunding platform, is widely utilized in creative communities for project funding and startup support. With a track record of facilitating over $2 billion in crowdfunding, Patreon has become a go-to platform for creators seeking financial backing from fans, family, and friends.
Key Features
Membership platform for creators, allows creators to receive recurring payments from fans, offers different membership tiers with varying benefits, provides a platform for creators to share exclusive content with patrons, facilitates direct communication between creators and patronsPricing
5%–12% platform fee depending on subscription plan; 2.9% standard processing fee + $0.30 per payment over $3; 5% micropayment fee + $0.10 per payment under $3
Webfunder
Wefunder functions as an equity crowdfunding platform, offering investors company equity in return for funding. Additionally, startups can opt for debt crowdfunding on the platform, requiring them to repay the funding received. Wefunder stands as the top choice for startups anticipating venture capital investment due to their rapid growth.
Key Features
Allows individuals to invest in startups and small businesses, offers investment opportunities to both accredited and non-accredited investors, provides a wide range of investment options, including equity, revenue sharing, and debt investments, enables investors to support and back companies they believe inPricing
7.5% platform fee
GoFundMe
GoFundMe is an excellent platform for social entrepreneurs and nonprofit organizations aiming to improve the world and seeking financial support. It caters to startups with a focus on sectors like healthcare, animal welfare, and environmental sustainability.
Key Features
Easy to set up and share campaign pages, accepts donations from individuals worldwide, offers various payment options, provides social sharing features for wider reach, offers fundraising tips and resourcesPricing
2.9% payment fee + $0.30 per pledge; 0% platform fee
Foundersuite
Foundersuite is a specialized CRM software that aids startup companies in locating investors, overseeing investor relations, and monitoring funding progress. This comprehensive solution combines investor relations and fundraising tools within a single platform. With Foundersuite, founders can efficiently manage investor information, secure capital, facilitate communication, and foster network engagement. Additional functionalities include capitalization table creation, portfolio management, review of due diligence requests, valuation analysis, and investor outreach.
Key Features
Team assignments, relationship tracking, performance metrics and fund managementPricing
Free and then starts from $44 per month
AngelList
AngelList is a platform in the United States that facilitates fundraising and networking for startups, angel investors, and limited partners. Established in 2010, it initially served as an online platform for tech startups seeking seed funding. Since 2015, AngelList has provided a free avenue for startups to secure funding from angel investors