Smith 
Thanks to technology and the internet, there are now many crowdfunding platforms that make the funding process easier. Recent research shows that crowdfunding is expected to grow at a compound annual growth rate (CAGR) of 58.10% from 2023 to 2030. Crowdfunding happens when you ask people to contribute money to support a project or goal, and the purpose of these platforms can be quite varied. Some platforms help cover funeral expenses, fund entrepreneurial endeavors, launch new products, pay down debt, or even invest in real estate. If you need to raise money, comparing crowdfunding platforms is a smart start. We looked at the top platforms based on their services, functionality, and fees. We recommend checking out Kickstarter, LendingClub, Patreon, GoFundMe, and Indiegogo, but your choice will depend on your fundraising goals.
There are different types of crowdfunding, such as debt crowdfunding, medical crowdfunding, expense crowdfunding, product crowdfunding, and support crowdfunding. Platforms charge varying fees, usually ranging from 5% to 12% of the money raised, plus transaction fees. According to Statista, $17.2 billion is generated through crowdfunding each year in the U.S., with successful campaigns raising an average of $28,656. However, the average amount raised across all campaigns was $824 last year.
The best crowdfunding platform for you depends on your goals. We ranked the platforms based on reputation, features, and fees. Here are our top picks:
- Kickstarter: Best for launching products. Founded in 2009, it has helped fund over 201,000 projects with $5.8 billion pledged. It charges a 5% fee plus payment processing fees of 3% + $0.20 per pledge. However, funding is all-or-nothing; if you don’t meet your goal, no money changes hands.
- Indiegogo: Runner-up for launching products. Founded in 2008, it hosts around 19,000 campaigns each month. Unlike Kickstarter, it allows you to keep the funds raised even if you don’t meet your goal. It charges a 5% program fee plus 2.9% + $0.30 per transaction.
- LendingClub: Best for debt consolidation. It offers loans funded by individual investors, not traditional banks. Loans have an APR ranging from 8.05% to 35.89% and origination fees from 3% to 6%.
- Patreon: Best for memberships. Content creators can build communities with membership fees. Fees range from 5% to 12% of monthly income, plus payment processing fees.
- GoFundMe: Best for online fundraising. Launched in 2010, it has raised $9 billion through over 120 million donations. It has a 0% program fee but charges 2.9% + $0.30 per transaction.
When choosing a platform, consider transparent pricing, social media and email integration, brand recognition, and easy access to funds. Not all campaigns are successful, and some platforms withhold funds if goals aren’t met. Crowdfunding fees can add up, so weigh the costs. Also, prepare to put in time and effort promoting your campaign.
In summary, crowdfunding is growing rapidly and offers diverse options to meet different fundraising needs. The best platforms combine transparent pricing, social media integration, brand recognition, and simple fund access, but success depends on dedication and strategic effort.
