GoFundMe Alternatives For Small Business Funding

Why We Chose Kickstarter For GoFundMe Alternatives

Hobbyists, tech geeks, and superfans continue to demonstrate their willingness to spend money on crowdfunding projects to get in on The Next Big Thing. Kickstarter is the best-known place to do just that. Between Kickstarter's 2009 launch and today, the company has seen $7.56 billion in funding pledged to its campaigns (more than any crowdfunding site besides GoFundMe). While most Kickstarter campaigns raise less than $10,000, hundreds of companies have raised more than $1 million on the platform.

Kickstarter embodies the concept of rewards crowdfunding: crowdfunding in which backers support campaigns and receive rewards in return, typically in the form of the proposed product. Kickstarter's target audience includes those in the business of creating things (digital or physical) to share with others. In fact, to host a Kickstarter crowdfunding campaign, you must offer rewards to your potential backers. Furthermore, these rewards must be of your making and must relate to your project.

Kickstarter Pricing

Kickstarter campaigns can be open for 1-60 days, and campaigns are all-or-nothing -- you either meet your funding goal by the time your campaign ends, or you get no funds whatsoever. If your campaign is successful, a 5% platform fee is taken from what you raise.

A 3% + $0.20 payment processing fee is also taken from each pledge made to you (a discounted micropledge fee of 5% + $0.05 applies to pledges under $10).

Why We Chose WeFunder For GoFundMe Alternatives

A purely business-oriented crowdfunding platform, Wefunder hosts equity crowdfunding campaigns in which non-accredited investors (i.e., anyone) can invest -- this is known as Regulation Crowdfunding. By allowing anyone to invest, you're casting a wider net in your hunt for investors and can bring in up to $5 million per year in venture capital with Wefunder. Wefunder can also facilitate campaigns that accept funding from accredited investors (high net-worth individuals), through which you can raise an unlimited amount on the platform.

Wefunder hosts funding campaigns for many different business types (particularly craft breweries), but equity crowdfunding is hard to pull off. Thus, Wefunder is best for startups with high-profit potential that is apparent to investors. To give you an idea of the kind of company we're talking about, Wefunder has funded several startups that are now worth over $1 billion.

Wefunder Pricing

Wefunder has an all-or-nothing funding model, which means that you only receive funds if you meet or exceed your funding goal within the one-year funding limit. Wefunder charges a 7.9% platform fee if your campaign is successful. The 7.9% platform fee seems a bit high when compared to the likes of Kickstarter, but Regulation Crowdfunding is a more complex beast than rewards crowdfunding.

Why We Chose Kiva For GoFundMe Alternatives

And now for something completely different. Kiva U.S. doesn't offer rewards crowdfunding or equity crowdfunding. What the heck does it do, then? Kiva U.S. offers debt crowdfunding, otherwise known as crowdfunded loans. Kiva U.S. is a nonprofit entity, and the crowdfunded loans it offers carry 0% interest. Not bad, eh? It may be the only platform in which lenders stand to make no profit whatsoever. Kiva's mission is to open up the lending world to businesses that would otherwise struggle for funding. In that sense, Kiva can also be considered charitable crowdfunding.

Kiva U.S. Pricing

If you need to borrow $15,000 or less for your business and are willing to wait a bit for your money, Kiva's crowdfunded loans might be for you.

Absolutely any sort of business can apply for a Kiva U.S. crowdfunded loan. Unlike traditional business loans, Kiva loans do not have any business revenue or time-in-business requirements. However, you will typically be required to solicit between 5 and 35 backers from your personal network before your campaign can go public.

After the initial approval stage, Kiva has a 15-day private funding period during which you solicit backers from your friends and family, business contacts, etc. Then, you'll enter a 30-day public funding period. If you meet your goal, the funds should be in your account within a week. Kiva's crowdfunding model is all-or-nothing, so you do not receive any money if you don't meet your goal.

Since Kiva loan backers don't receive interest or other benefits in exchange for backing your loan, the types of startups that do best on this platform tend to be nonprofits, socially responsible businesses that give back to their community, or businesses with a heartwarming backstory.

Why We Chose Indiegogo For GoFundMe Alternatives

Indiegogo appeals to a lot of the same entrepreneurs and creators as Kickstarter, including creators in tech, games, and the arts. However, Indiegogo's rewards crowdfunding platform is more flexible and less exclusive than that of Kickstarter, as Indiegogo doesn't prescreen projects before they launch. Many startups have found success on Indiegogo after being rejected by Kickstarter.

Indiegogo Pricing

Indiegogo's rewards crowdfunding campaigns can last up to 60 days, and you can choose a keep-what-you-raise campaign (you keep what you raise whether you meet your funding goal or not) OR an all-or-nothing campaign. The service has a 5% platform fee and a 3% + $0.20 payment processing fee (per pledge).

Indiegogo doesn't mandate that you offer rewards but does highly recommend it. Campaigns that don't offer rewards tend to fail.

Indiegogo also has a service called IndieGogo InDemand, which lets you continue to raise money and stay in touch with your backers after your crowdfunding campaign ends, similar to Patreon (more on Patreon in a bit).

Why We Chose Fundable For GoFundMe Alternatives

Fundable is a crowdfunding platform exclusively for businesses and hosts both rewards and equity-based funding campaigns. Fundable recommends that those looking to raise under $50,000 try a rewards campaign, while those trying to raise over $50K go for an equity campaign. Fundable is a great choice for serious startups that can offer either rewards or equity.

Fundable Pricing

Rather than charge a platform fee to users, Fundable charges a monthly fee of $179 to all campaigners. There's also a 3.5% + $0.30 payment processing fee for rewards campaigns only.

Fundable hosts crowdfunding campaigns for a wide variety of businesses, though tech, food service, and healthcare companies are particularly well-represented. It's a system that favors serious startups and early-stage companies over small-time artists and creators.

Given the monthly fee and all-or-nothing funding model, if your campaign is unsuccessful, you won't just have raised nothing -- you'll have spent money to raise nothing. However, a startup with high growth potential stands to benefit from the absence of the 5% platform fee that many crowdfunding sites impose. After all, if you raise $50K, a 5% cut is a lot more than Fundable's $179 monthly fee!

Why We Chose Patreon For GoFundMe Alternatives

If creation is your business, and GoFundMe doesn't quite fit what you do, give Patreon a try. Its innovative brand of continuous rewards crowdfunding provides a means of monetizing your work. With Patreon, your campaign doesn't end unless you end it. Patrons sign up to support you on a recurring basis (either per month or per creation), somewhat similar to a subscription service. In return, you provide your patrons with exclusive content.

Those in the business of creation will find Patreon an ideal crowdfunding platform. Game designers, journalists, musicians, comic book artists, and YouTubers all use it, though podcasters have had particular success on the platform.

Patreon Pricing

Patreon charges a 5% to 12% platform fee, depending on which Patreon subscription plan you're on. Additionally, the platform charges a 2.9% +$0.30 processing fee for donations over $3. A micropayment rate of 5% + $0.10 is charged for donations of $3 or less.

Why We Chose FundRazr For GoFundMe Alternatives

FundRazr hosts a wide variety of personal and charitable crowdfunding campaigns, though it hosts business campaigns as well (and not just in Canada). FundRazr isn't the most high-profile rewards crowdfunding service in the business, but its exceptional reputation makes it worth considering for the startup in need of funding. Also, it's for everyone, from charities to businesses and everything in between. FundRazr doesn't prescreen campaigns, nor does it have any particular bent as to what sort of businesses it favors. And while business campaigns are encouraged to offer rewards in the form of "perks," it isn't mandatory.

FundRazr Pricing

Fundrazr has a free plan with no platform fee. The only fees taken out of what you raise will be payment processing fees. However, donors are asked to leave a tip on this plan. You can also choose from a plan with a 5% platform fee where donors are not asked for a tip.

FundRazr has no mandatory time limit for campaigns, and you can choose between keep-what-you-raise OR all-or-nothing funding. FundRazr uses PayPal and Stripe for payment processing, and you will be charged the standard fees from those processors. If desired, you can choose to pass on some or all of these processing fees to your supporters.