Popular crowdfunding platforms

In the past decade, crowdfunding platforms have transformed how startups and nonprofits raise money. These platforms have empowered millions, turning their ideas into reality. The global crowdfunding market is projected to reach $43 billion by 2028, showcasing its growing impact on entrepreneurship and social causes.

This article will discuss the most popular crowdfunding platforms, compare their strengths and weaknesses, and help you make an informed decision.

What is crowdfunding?

Crowdfunding is raising money from many people through online platforms to fund a project or cause. Crowdfunding investment platforms can help you turn ideas into reality. The basic process of crowdfunding is simple.

First, founders present their ideas on the crowdfunding platform. They set a funding goal and a timeline. Then, they attract backers through incentives such as rewards, equity, or the satisfaction of supporting a cause1. The project is funded if enough people contribute to reach the goal within the set timeframe.

Types of crowdfunding

Reward-based crowdfunding: Backers contribute money in exchange for a reward, such as a service or a product1.

Equity-based crowdfunding: Investors receive shares or ownership in a company in exchange for their contribution.
Debt-based crowdfunding: Contributors lend money to individuals or businesses expecting repayment with interest1.
Donation-based crowdfunding: People contribute money without expecting anything in return, for example, giving for charity.

Benefits of crowdfunding

Access to capital: It provides alternative funding easier and quicker than traditional methods like bank loans or venture capital1.

Community engagement: Crowdfunding allows creators to connect with their audience and build a loyal community around their idea1.
Marketing and exposure: Crowdfunding platforms serve as a marketing tool as they increase the project's visibility.
Flexibility: With different types of crowdfunding available, creators can choose the model that best suits their needs1.

How to choose the right crowdfunding platform

Understanding your goals

Before you start researching the different platforms, take a moment to reflect on your project goals. Are you looking for donations or investors? Your platform choice will depend on the type of support you need. If you're raising money for a cause, a donation-based platform like GoFundMe may be ideal1.

Key factors to consider

When evaluating crowdfunding platforms, consider the following factors:

1. Fees: Some platforms charge a percentage of the funds raised, while others charge a flat fee.

2. Audience: Does the platform have a strong user base that is relevant to your project? For example, Kickstarter's community is geared toward creative projects, while GoFundMe has a broad and general audience.

3. Funding model: Some platforms offer all-or-nothing funding (like Kickstarter), while others allow you to keep the funds raised, even if you don’t reach your goal (like Indiegogo).

4. Regulations and support: Platforms like SeedInvest and Crowdcube provide access to accredited investors but have stricter requirements for entrepreneurs.

Examples of successful campaigns

1. Exploding Kittens (Kickstarter)

Exploding Kittens is a card game designed by former Xbox employees. In 2015, the project raised over $8.7 million on Kickstarter, surpassing its initial goal of $10,000. The campaign's success can be attributed to its compelling pitch and the game's unique nature.

2. Pebble Smartwatch (Kickstarter)

Pebble, one of the first successful smartwatches, raised over $10 million on Kickstarter in 2012. The campaign's success was largely due to the product's early entry into the smartwatch market and the alignment with early adopter tech enthusiasts2.

1. Kickstarter

Kickstarter is a crowdfunding platform focused on supporting creative projects. It enables creators to bring innovative ideas to life by connecting them with suitable investors who provide financial support in exchange for rewards2. Projects must reach their full funding goal within the given period; otherwise, no money is collected.

Key benefits:

A large community of backers.
High visibility for projects.
Excellent for creative projects and product launches.

2. Indiegogo

While similar to Kickstarter, Indiegogo differentiates itself by offering a flexible funding option. This means creators can keep the funds they raise even if they don't meet their initial goal2. This flexibility makes it an appealing choice for projects that might not have the guaranteed demand Kickstarter requires.

One standout feature of Indiegogo is InDemand, which allows creators to continue raising funds after their campaign ends. This ongoing fundraising option helps projects stay in the spotlight and maintain momentum, making it an excellent tool for businesses that need longer-term funding or want to extend their campaigns2.

3. GoFundMe

As one of the largest crowdfunding platforms, GoFundMe primarily focuses on charity work and nonprofit fundraising. What sets GoFundMe apart from other platforms is that it does not charge platform fees for personal campaigns, making it a popular choice for individuals raising money for medical bills or disaster relief. The platform's simplicity and broad appeal make creating a campaign easy2.

4. SeedInvest

SeedInvest is a leading equity crowdfunding platform for startups seeking to raise capital from accredited investors. The platform ensures compliance with SEC regulations, ideal for businesses that want to offer equity in exchange for investment2.

SeedInvest's rigorous vetting process ensures that only quality startups are featured, providing security for investors and helping founders build credibility.SeedInvest is a great platform for companies in the early stages of development that need large-scale funding and are ready to offer equity to potential backers.

5. Patreon

Patreon is a subscription-based crowdfunding platform designed to help creators earn recurring revenue from their fanbase. Instead of running a one-time campaign, creators on Patreon receive ongoing support in exchange for exclusive content. This makes it ideal for content creators, artists, musicians, and writers who produce regular content and want a sustainable income2.

The platform's flexibility allows creators to offer different membership tiers with varying access levels. This subscription model creates a continuous funding stream, allowing creators to focus on their work while maintaining a reliable financial foundation.

6. Crowdcube

Crowdcube is an equity crowdfunding platform primarily focused on businesses in the UK. It allows startups and growing businesses to raise capital by offering a broad investor base equity2. One of Crowdcube's key benefits is its regulation by the Financial Conduct Authority (FCA), which provides investors with added security and ensures that businesses are held to high standards.

Crowdcube's broad investor base makes it a good platform for companies looking to reach diverse investors and generate capital.

7. Fundable

Fundable operates with a dual model, offering equity—and rewards-based crowdfunding. This flexibility makes it an ideal platform for businesses exploring different funding models based on their needs3.

Fundable offers a more professional, business-oriented approach to crowdfunding. Its dual model allows businesses to experiment with various funding options, ensuring they can find the best strategy for their growth.

8. MightyCause

MightyCause is a crowdfunding platform tailored for nonprofit organizations. It offers highly customizable fundraising pages that reflect the nonprofit's needs and goals3. MightyCause is an excellent option for small or large nonprofits that want to run campaigns.

One of MightyCause's key features is its versatility. The platform supports one-time donations, recurring donations, and event fundraising, making it a great choice for nonprofits with varied needs3. Its user-friendly design ensures that small and large organizations can easily set up and manage campaigns.

9. StartEngine

StartEngine is another popular equity crowdfunding platform that allows businesses to raise capital by offering shares to the public3. Unlike traditional venture capital, StartEngine cuts out middlemen, allowing entrepreneurs to pitch directly to investors.

With a focus on public investments, StartEngine offers many investment opportunities across industries, from tech startups to consumer goods3. Its diverse range of projects makes it an appealing platform for investing in emerging businesses.

10. Wefunder

Wefunder is another equity crowdfunding platform allowing startups to raise funds from accredited and non-accredited investors. The platform's low minimum investment requirement makes it highly accessible, allowing anyone with limited capital to invest in early-stage companies.

Wefunder's biggest draws are its approach to lowering the barrier to entry for investors. This makes it an ideal platform for startups looking to tap into a broader pool of potential backers and for individuals who want to get involved in supporting new businesses without needing a significant financial investment.

Maximizing success on crowdfunding platforms

Building a pre-launch strategy

A strong pre-launch strategy is key to building momentum. Start by gathering an email list of interested people and keeping them updated3. Create a "coming soon" page to capture early interest and engage on social media to generate buzz. Offering early-bird rewards can incentivize people to back your project once it launches.

Engaging with backers

Engagement is crucial to maintaining momentum throughout the campaign. Respond to comments, update regularly, and involve backers through live Q&As or polls3. This builds trust and loyalty, making backers more likely to share your campaign and bring in new supporters.

Leveraging multimedia content

Videos and high-quality images are essential for standing out. A short, engaging video can convey your project's story and build an emotional connection with potential backers3. Visuals add professionalism and help create trust in your campaign.

Setting realistic milestones

Break your overall funding goal into smaller milestones. Celebrate each milestone publicly to keep backers excited and motivated. Setting achievable goals keeps you focused and allows you to adjust strategies. Offering stretch goals or new rewards as milestones are hit can maintain excitement.

Utilizing social proof

Social proof—showcasing testimonials, reviews, or endorsements—helps build credibility. People are more likely to back a project that others believe in. Highlight positive feedback from backers or influencers, and share milestones like the number of backers or funds raised to encourage further support.

Pros and cons of using crowdfunding

Advantages

Access to capital without debt or equity loss: You can raise funds without taking on loans or giving up ownership. Platforms like Kickstarter allow creators to raise money without needing investors.
Market validation: Crowdfunding helps validate your idea by showing if there's demand for your product before you invest heavily. If people are willing to back your project, it’s a sign there’s interest.
Community support: It allows you to build a loyal community of backers who support your vision and spread the word about your campaign4.
Marketing exposure: Crowdfunding platforms give you access to a broad audience, boosting visibility and attracting attention to your project.
Flexible funding models: Some platforms offer flexible funding options, where you can keep the funds raised even if you don’t meet your goal (e.g., Indiegogo), giving you more financial flexibility4.

Disadvantages

Platform fees: Crowdfunding platforms usually charge a fee (5-10%), which reduces the funds you ultimately receive.
Competition: Thousands of campaigns are launched daily, making it challenging to stand out. You'll need to invest significant time and effort into marketing to attract backers1.
All-or-nothing model: Some platforms (like Kickstarter) only release funds if you meet your full funding goal, which can be risky if you fall short4.
Time-consuming: Running a crowdfunding campaign requires ongoing promotion, communication with backers, and managing rewards. It’s a time-intensive process, especially for first-timers4.
Uncertain outcome: Even with a well-planned campaign, success is not guaranteed. Many projects fail to meet their goals or don't generate enough interest.

When crowdfunding might not be the best option

Large funding needs: If your project requires significant capital, crowdfunding might not be the best option.
Lack of public appeal: If your idea doesn't have a broad audience or fails to generate enough excitement, it could struggle to gain traction in crowdfunding campaigns. Crowdfunding relies on attracting a wide range of backers.
Time constraints: Crowdfunding campaigns typically last a limited time, and creating and promoting them is time-consuming.
High competition: With so many campaigns launched daily, standing out on crowdfunding platforms can be difficult, especially if you lack a unique selling point or compelling marketing strategy.
Need for immediate funds: If you need funds urgently to launch or continue your project, crowdfunding might not be the best choice.

Tips for a successful crowdfunding campaign

Building a compelling story

Storytelling is one of the most powerful tools in crowdfunding. A compelling narrative helps backers connect with your project on an emotional level. Make sure you clearly explain why your project matters, how it solves a problem, and what impact it will have. Use visuals, like images and videos, to make the story more engaging4. Remember, people are more likely to support something they believe in.

Setting realistic funding goals

Setting realistic funding goals is essential to the success of your campaign. Overestimating your funding target may discourage backers, while underestimating can leave you short of the necessary funds. Consider offering multiple funding tiers to attract different backers, and include stretch goals to keep the momentum going once your initial goal is met4.

Promotional strategies

Use social media platforms (Facebook, Instagram, Twitter, LinkedIn) to share regular updates, behind-the-scenes content, and sneak peeks. Create a sense of urgency with limited-time rewards and milestones4. Collaborate with influencers or bloggers who align with your project's values to help expand your reach.

Alternatives to crowdfunding

Angel investors and venture capital

Angel investors and venture capital (VC) funding are alternative sources of capital to crowdfunding. Angel investors provide early-stage funding in exchange for equity or convertible debt. They often offer more personalized support and advice.

On the other hand, venture capital involves larger investments from firms looking for high-growth potential companies in exchange for significant equity4. These investor types are ideal for businesses that require substantial funding and are prepared to give up some level of control.

Business loans and grants

Business loans and grants are traditional sources that don't require you to give up equity. A business loan provides capital that you repay over time with interest. This option is suitable for established businesses with a proven track record.

Grants, often offered by government agencies or nonprofits, provide funding that doesn't need to be repaid but may come with specific conditions or eligibility requirements. Both options can provide a stable funding source, though they typically require good credit or a solid business plan.

Bootstrapping

Bootstrapping refers to funding your business using personal savings, revenue from your business, or funds from family and friends. This option lets you control your business completely, as you don't need to give up equity or take on debt.

However, it comes with risks—relying on personal savings can drain your finances, and growth may be slower without external funding. While bootstrapping gives you more independence, it requires a substantial financial safety net and the patience to grow your business organically.

Presenting your idea effectively

The importance of a pitch deck

A pitch deck is essential when presenting your crowdfunding campaign to potential backers. It is your project's visual presentation and provides the necessary information for your backers. A well-crafted pitch deck can grab attention, build trust, and inspire people to support your idea.

In crowdfunding, your pitch deck communicates the story of your project and the impact it will make4. It's your chance to impress investors and backers and convince them why they should believe in your vision.

Key elements of a crowdfunding pitch deck

Your pitch deck should include the following key elements to capture the attention of potential backers:

Project overview: A brief introduction to your project, what it does, and why it matters.
Problem statement: Clearly define your problem and why it needs attention.
Solution: Explain how your product or service addresses the problem.
Market opportunity: Provide details on the target audience and the market potential.
Revenue model: Show how you plan to generate income, whether through product sales, services, or other means.
Funding goal: Be transparent about how much money you need and how you'll use it.
Timeline: Outline your project timeline, showing milestones and expected delivery dates.
Team: Introduce the team behind the project, highlighting their relevant experience and expertise.
Rewards: Explain what backers will receive in exchange for their support, whether it’s products, exclusive content, or experiences.

Common mistakes to avoid

Too much information: Avoid overwhelming your audience with unnecessary details. Keep your pitch deck clear and concise.

Lack of visual appeal: A pitch deck without engaging visuals can be dull. Use high-quality images and charts to bring your idea to life4.
Unclear message: Make sure your message is simple and clear. Avoid jargon or complex explanations that could confuse potential backers.
Unrealistic financials: Presenting overly optimistic financials or goals can raise doubts. Be honest and transparent about your financial needs4.
Missing market research: Failing to demonstrate market demand or customer interest can hurt your credibility. Always back up your claims with data.

How a professional pitch deck can boost your crowdfunding success

A professionally designed pitch deck can significantly enhance the credibility of your crowdfunding campaign. Pitch deck experts know how to structure your message and design it in a way that grabs attention and builds trust. With their help, you can ensure that your pitch deck stands out from the competition and effectively communicates the value of your project.

Propitchdeckservices.com offers tailored solutions for entrepreneurs looking to make their crowdfunding campaigns successful. A well-crafted, visually appealing pitch deck will increase your chances of attracting backers, raise more funds, and ultimately lead to a more successful campaign. When you partner with pitch deck professionals, you invest in your project’s credibility and future success.

By using professional services, you avoid common mistakes and ensure your pitch deck resonates with potential investors and backers, helping you turn your crowdfunding goals into a reality.

Sources used in this article:

What Is Crowdfunding and How Does It Work? https://www.classy.org/blog/what-is-crowdfunding/
15 Best Crowdfunding Platforms for 2025: https://research.com/software/best-crowdfunding-platforms
10 Best Crowdfunding Sites and Platforms in 2025: https://www.shopify.com/blog/crowdfunding-sites
Crowdfunding Pros and Cons for Startups: https://www.hubspot.com/startups/crowdfunding-pros-and-cons