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GoFundMe isn't the best option for business crowdfunding. See which platform can help you raise the funds you need for your business.
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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Shannon VissersShannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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Erica SeppalaErica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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GoFundMe alternatives can be useful for individuals trying to raise money for their small businesses through crowdfunding. While businesses use GoFundMe to fundraise, the vast majority of campaigns on the site are personal campaigns for need-based causes, often to cover medical expenses.
For business crowdfunding, other platforms may be a better option. In this post, we’re breaking down the best GoFundMe alternatives so you can raise the capital your business needs to succeed.
There are GoFundMe alternatives for all business types, from creators to local businesses to high-growth startups. The best options have a low platform fee and an entrepreneurial focus. Our top picks include:
Kickstarter: Best GoFundMe Alternative For Creators
Wefunder: Best GoFundMe Alternative For Equity Crowdfunding
Kiva U.S.: Best GoFundMe Alternatives For Microloans
Indiegogo: Best GoFundMe Alternative For Reward-Based Campaigns
Fundable: Best GoFundMe Alternative For Startups That Can Offer Rewards Or Equity
Patreon: Best GoFundMe Alternative For Content Creators With Large Followings
Great for creative entrepreneurs with an innovative product idea
Suitable for both small and large businesses
Cons
Only for companies that produce and distribute a product
High competition means many projects don’t get accepted or funded
Why Kickstarter Is A Great GoFundMe Alternative For Creators
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. 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 Fees
If your campaign is successful, a 5% platform fee is taken from what you raise.
Payment processing fees of 3% + $0.20 per pledge OR 5% + $0.05 per pledge under $10 also apply.
Kickstarter Terms
Kickstarter campaigns can be open for up to 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.
Choose Kickstarter If...
You want your creations to receive exposure on one of the most popular crowdfunding platforms
You’re a creator that can provide rewards to backers in exchange for funding
Suitable for high-growth startups that can attract venture capital investment
Biggest Regulation Crowdfunding platform
Accredited and non-accredited investor campaign options
Cons
Not suitable for the average startup company
Must reach your goal to receive funding
Why Wefunder Is The Best Equity-Based GoFundMe Alternative
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, 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 Fees
Wefunder charges a 7.9% platform fee if your campaign is successful. The fee seems a bit high when compared to the likes of Kickstarter, but Regulation Crowdfunding is a more complex beast than rewards crowdfunding.
WeFunder Terms
Wefunder has an All or Nothing funding model, which means that you only receive funds if you meet or exceed your funding goal.
Choose WeFunder If...
You want to raise large amounts of capital through Regulation Crowdfunding
No time-in-business or business revenue requirements
Weekly or monthly repayments
Cons
Low borrowing amounts
Must meet your goal to get funded
Somewhat rigorous vetting process
Why Kiva U.S. Is The Best GoFundMe Alternative For Microloans
Kiva U.S. doesn't offer rewards crowdfunding or equity crowdfunding. Instead, 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.
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. Fees
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. Repayment terms are 6 – 36 months.
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.
Kiva U.S. Terms
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.
Chose Kiva U.S. If...
You want a no-interest loan you’re willing to repay over time
You have friends and family willing to fund your campaign
Can run an ongoing crowdfunding campaign after your initial campaign
Fewer restrictions than Kickstarter
Cons
Less site traffic than Kickstarter
Campaigns that don’t offer rewards aren’t usually successful
Why Indiegogo Is The Best Rewards-Based GoFundMe Alternative
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 Fees
Indiegogo has a 5% platform fee and processing fees of 2.9% + $0.30 per pledge.
Indiegogo Terms
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.
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.
Choose Indiegogo If...
You’re a creator that has been rejected by Kickstarter
You want to continue to raise funds after your campaign ends
Why Fundable Is Best For Rewards Or Equity Crowdfunding
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 Fees
Rather than charge a platform fee to users, Fundable charges $179/month to all campaigners. There are also processing fees of 3.5% + $0.30 per transaction (rewards campaigns only).
Fundable Terms
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 monthly fee!
Choose Fundable If...
You have a startup or early-stage business
You want to choose between equity or rewards-based campaigns
Good for podcasters, musicians, and writers with large followings
Fewer content restrictions than other crowdfunding platforms
Cons
Fees can be high
Not for crowdfunding one-time projects
Hard to succeed without an existing audience for your work
Why Patreon Is Best For Content Creators With Large Followings
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. 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 Fees
Patreon charges a 8% (Pro) or 12% (Premium) platform fee, depending on which Patreon subscription plan you’re on.
Additionally, the platform charges processing fees of 2.9% + $0.30 for donations over $3 OR 5% + $0.10 for donations of $3 or less.
Patreon Terms
With Patreon, your campaign runs on a continuous basis and doesn’t end unless you end it. With Patreon, you can be paid per month or per creation.
Choose Patreon If...
You want to monetize recurring content
You’re in a creative field and have a large following
Can choose to pass on payment processing fees to supporters
Cons
Supporters are asked for an optional donation on the free plan
Relatively small crowdfunding platform
Why FundRazr Is The Best Free GoFundMeAlternative
FundRazr hosts a wide variety of personal and charitable crowdfunding campaigns, though it hosts business campaigns as well. 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 particularly favor any specific type of business. And while business campaigns are encouraged to offer rewards in the form of "perks," it isn't mandatory.
FundRazr Fees
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 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.
FundRazr Terms
FundRazr has no mandatory time limit for campaigns, and you can choose between keep-what-you-raise OR all-or-nothing funding.
Choose FundRazr If...
You want to raise funds without paying platform fees
You want to easily join a crowdfunding platform that doesn’t prescreen campaigns
We spend hours researching and evaluating each crowdfunding platform that we review at Merchant Maverick, placing emphasis on key characteristics to generate our product ratings.
Weighted Rating Breakdown
Terms & Fees 25%
Project Qualifications 25%
Application Process 25%
Sales & Advertising Transparency 10%
Customer Service 10%
User Reviews 5%
When rating crowdfunding platforms, we use a rubric that looks at terms and fees, project qualifications, application process, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating.
Terms & Fees: 25% of the total star rating
Project Qualifications: 25% of the total star rating
Application Process: 25% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Service: 10% of the total star rating
User Reviews: 5% of the total star rating
Each section is further broken down into granular, weighted subsections, in which we look at specific attributes, such as campaign durations, supported project types, time to funding, application processing times, and platform fees. Learn more about how we rate crowdfunding platforms.
Types Of GoFundMe Alternatives For Businesses
The following types of crowdfunding platforms can be suitable GoFundMe alternatives for small businesses.
Rewards Crowdfunding: Donors to your campaign will receive some sort of (digital or physical) reward.
Equity Crowdfunding: Your campaign backers act as investors, receiving equity in your company.
Regulation Crowdfunding: A subtype of equity crowdfunding in which non-accredited investors can back your campaign.
Debt Crowdfunding: Your campaign backers act as lenders, which means you will have to repay them at some point.
All-Or-Nothing Funding: You will not receive any money from your campaign unless you meet your goal.
Keep-What-You-Earn Funding: Even if you do not meet your goal, you will be able to keep however much money you raise with your campaign.
Free Business Crowdfunding: Some crowdfunding websites — like GoFundMe — do not charge a platform fee or monthly fee to use the service. However, GoFundMe and other free GoFundMe alternatives still charge a payment processing fee that is typically deducted from each donation.
Crowdfunding platforms can fall into more than one of these categories. For example, some business crowdfunding services let you choose between equity crowdfunding and rewards crowdfunding.
How To Choose The Right GoFundMe Alternative
If you’re looking for a crowdfunding site with more business-specific features than GoFundMe, the eight companies I’ve mentioned are all solid possibilities. The best fit depends on the nature of your business, its potential, and whether you want to offer rewards, equity, or debt payments with interest to your potential backers.
Here are some questions to ask yourself to help you determine which of these GoFundMe alternatives is best for you:
How much capital are you looking to raise?
Can you offer rewards or equity in your company?
Are you a creator with a tangible or digital product that you produce?
What type of investor do you think your company could attract? (For example, a casual investor looking to back a good cause or a business person looking to make a profit.)
Do you run a smalllocal business or a high-growth, Silicon Valley-type startup?
Does your business give back to the community in some way?
Choose The Best GoFundMe Alternative According To Business Type
Generally, the following types of businesses should choose these respective crowdfunding types and related GoFundMe alternatives:
If none of these crowdfunding options sound quite right for your business, then you might want to consider applying for a business grant or a small business loan. In many cases, you can apply for a business grant or a loan online just as easily as you would apply for crowdfunding.
Consider what type of funding makes sense for your business, then make the jump while you can. Your ideas won’t stay ripe indefinitely, so strike while the iron is hot!
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
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