35 Best Crowdfunding Sites for Small Business 2019
Small businesses can raise money with crowdfunding in exchange for rewards, future repayment, or equity in the company. Startups and more established companies can raise funds online while getting new customers. The best crowdfunding sites offer low fees, a large audience, and allow a variety of campaigns.
Choosing the Right Crowdfunding Website
There are different types of crowdfunding, identified by what you are giving backers for their support. These include equity, debt, rewards, and donation crowdfunding. Each website will typically specialize in one type of crowdfunding. However, they may offer multiple ways for you to reward your supporters.
The types of crowdfunding websites available to small businesses are:
Equity crowdfunding: With equity crowdfunding businesses are selling a share of their company to investors; this type of crowdfunding is typically best for businesses that can grow and scale quickly
Debt crowdfunding: Debt crowdfunding works similar to a traditional business loan; however, rather than owing the bank, borrowers owe payments to the individuals; funds are raised at a predetermined annual percentage rate (APR) and is best for business with strong revenues and credit histories
Rewards crowdfunding: By offering backers a reward, you can avoid having to repay debt or giving up equity in your company; rewards crowdfunding is best for businesses that have a product they can ship and or need funding before generating revenues
Donation crowdfunding: Donation crowdfunding is the most difficult to raise, but does not require repayment of any kind; it’s best for businesses that can get support from their local communities to fund their campaign
Click below to read the full article by Dennis Shirshikov for FitSmallBusiness.