Get $200 to $200,000 For Your Idea From
Friendly Crowds On the Internet
He Raised $35,000 in 30 Day to Pre-fund a Book
It's called crowd-funding. A new non-government source of funding for any idea you have to make money, help your community, or work on your art, music, film or whatever.
A Game Company Got $22,235 To Offer Funds To New Game Designers.
"Three Dudes Barbeque" Raised $6,000 For A Mobile Cart To Turn Their BBQ Hobby In To A Business
Struggling Film Maker Raised $31,000 To Make A Documentary
An Aerial Dance Company Totaled $2,890 To Attend A Dance Festival.
Clothing Company Raised $5,512 To Fight Global Hunger By Sharing Festival Profits
$1,895 Turned A Book Into A Screen Play.
$1,920 Provided Toys To Animals In Shelters.
$530 To Make A Doritos Commercial For A Contest.
$500 Allowed A Non-Profit To Be Formed for Adoptee-Parent Reunions
$5,405 To Launch A Book Publishing Company.
An Inspired Comic Book Creator Received $12,644 To Produce A Comic Book.
A California Craftwoman Got $3,113 To Create Vintage Story-Tellers.
$8,765 For A Children's Book For The iPad.
$1,880 Changed A Vacant Lot Into a Public Garden.
Get $31,000 to make your video project. That is what the man who made our documentary got when he came up with an idea for his own video. One member of our staff supported Freaker USA and for her funding donation got 4 incredibly awesome beverage coolers. Crowd-funding is the hottest term going at the moment. Here is your chance to show your creative spirit and put together a great idea to help you make your dreams come true.
You submit your proposal on paper and also often by video to one of the many crowd-funding sites out there. They feature your idea, allowing you to have the exposure you need to get the funding to turn your idea into reality. It gives you a place you can direct potentials funders (including, mom, dad, grandma, and all the cousins) to see and donate to your project. You can spread the word through all forms of social media available, as well as all the email contacts you and your friends may have. Many of the crowd-funding websites have a small fee if you make your project financial goal, and a larger fee if you do not make your goal but are still allowed to keep the funding. The idea is that it will make you set a reasonable goal to achieve.
In almost all cases, you offer your donors a prize or incentive for donating to your cause - tickets to your play or your movie, product samples, a thank you in the liner notes of your CD, to give just a few examples. Each crowd-funding site offers tips and strategies to make your project a success. In addition we found this site that offers 11 general tips on how make sure your funding project succeeds:
Obviously the government wants to make sure that everything is aboveboard and legal. The crowd-funding sites have limits on what is allowed and make sure that everything is legal, especially where the SEC is concerned. Currently there are several bills in the House of Representatives looking at allowing less regulation of crowd-funding sites to open up more opportunities for potential companies and investors.
Here are 20 crowd-funding sites to get you started. Happy Fundraising!
- Kickstarter claims to be "the largest funding platform for creative projects in the world. Every week, tens of thousands of amazing people pledge millions of dollars to projects from the worlds of music, film, art, technology, design, food, publishing and other creative fields." A caveat is that the project must reach its funding goal before any money is actually exchanged. For your donations to the projects you often get product samples, tickets to the show or movie, copies of CDs, which are all dependent upon your donation level. You cannot use Kickstarter to fund a charity, cause, or to just pay your bills. They have guidelines and even a Kickstarter school. If you meet your goal, there is a 5% fee charged by Kickstarter. There are step by step instructions to get your project listed for you to receive the funding you need to make your dreams come true.
For more information go to http://www.kickstarter.com/
- For those social entrepreneurs or those with a social mission, there is a special program just for you. 33needs focuses on social entrepreneurs doing projects to help the planet, education, community, health, opportunity, and sustainable food. You submit your application and a video and the team decides if you qualify for posting on their site. For your investment dollars, you earn impact points that can be cashed in for goodies. Like kickstarter, it is an all or nothing program, so the company needs to reach their target goal before money is exchanged.To learn more go to http://33needs.com/
- FansNextdoor is a free European Crowd-funding service where you can promote your project online. Funds are deposited into a PayPal account and once you have reached your goal, the funds are transferred.
- Gen Y Capital works as an early stage venture accelerator for young entrepreneurs. If your project is accepted they will pay your student loan debt for up to three years, allow you to live on college campuses for two years taking advantage of the school's business courses, and provide peer mentorship throughout. Your project must involve a well-rounded management team, a solid project idea, paying clients, and barriers to entry into the market.
To see you if you qualify, go to http://thegenyfund.com/
- IndieGoGo provides a platform where you can raise funding for your project. You do not need to meet your goal to receive the funding, although there is a fee of 4% if you meet your goal and 9% if you don't. You can learn how to create, share, fund, and manage your campaign.
To learn more go to http://www.indiegogo.com/
- MicroVentures Marketplace targets certain technologies, services, and products. You submit your proposal and $100 and the team reviews your idea. If your proposal is accepted, you are featured on their website for investors. If accepted you will also need to go through a detailed review of your business plan, etc. and incur a $250 additional fee. Your investors will get a stake in your company for their investment. MicroVentures takes a 10% fee only if you meet your funding goal. Again, you receive no money if you do not meet your goal.
For more inforamtion, go to http://www.microventures.com/
- Peerbackers is a way for you post your business funding needs online, and allow your fellow peers to contribute. You devise some rewards to give to your investors. There is no fee to post, but they do charge a 5% fee for funds raised. If you don't meet your funding goal, but can still deliver on your rewards, then the money will be released to you. All the money will be returned to the backers if you cannot deliver.
For more information, go to http://peerbackers.com/
- Rockethub is full of creatives and fuelers. Creatives are those who have projects that want funding, and the fuelers are those that help finance and spread the word on worthy opportunities. You can earn badges by completing certain tasks. Rockethub has a 4% fee for those successful at reaching their goal, and an 8% fee for those who don't. Like many other crowdfunding sites, you must offer rewards to your contributors. http://rockethub.com/
- Profounder focuses on serious entrepreneurs. They help you with step by step instructions to get your ideas formalized and provide a checklist for you to use. They give you funding ideas and instructions. They also even help link up entrepreuers with each other to help share resources and ideas. Profunder provides compliance tools for fundraising as you offer securities in your company to your investors. This site is free. For more information go to https://www.profounder.com/
- Buzzbnk is based in the United Kingdom, although accepts projects from throughout the world. It focuses on social enterprises. You submit your project to Buzzbnk and their team will work with yu to determine your best strategy. There is a small registration fee and percentage fee if you make your fundraising goal. Like other sites, you offer rewards to your investors, whether it is gifts, experiences, or an interest payment on their donation. For more information contact https://www.buzzbnk.org/
- Pozible is another crowdfunding site "developed for artists, musicians, filmmakers, journalists, designers, entrepreneurs, inventors, event organizers, software developers and all creative minded people to help make great things possible." You keep 100% of the ownership of your project and Pozible charges a fee only for successful projects of around 3% (unsuccessful funding projects do not receive any money). Like the other sites, rewards are offered for different funding levels.
For more information contact http://www.pozible.com/
- Start Some Good is a crowd-funding site for those interested in doing a project for the social good. These social entrepreneurs are innovators working to make our world a better place. This site is unique in that it has two funding levels. The first that you set is your "tipping point" which allows you to begin your project. The second is a "total fund goal" which will fully fund your project. You offer rewards to your donors like other sites and Start Some Good takes a 5% fee for those that meet their tipping point goal.
For more information contact http://startsomegood.com/
- ArtistShare is a crowd-funding site specifically for musicians to allow fans to support various recording projects. Your donation to a project can get you everything from a copy of the CD and a mention in their liner notes to a visit to their recording session, all dependent up on your donation level. If you are a struggling musician this is the site to let your fans, friends, and family support your next big project. For more information contact http://www.artistshare.com/
- SellaBand is another site to help musicians produce their work independently without the control of vairous industry publishing companies. If you are a band or a supporter of new music, this is the site for you. Your rewards for funding can be everything from downloading a song to a percentage of sales.
To learn more go to https://www.sellaband.com/en
- Microgiving is unlike any other crowd-funding site in that it allows you to put up your pleas for assistance with bills, housing, health concerns, and other living expenses. This is a place for you to post your financial hardships or fundraiser for various causes. The site charges a 5% fee for any money raised for financial hardship and 10% fee for fundraisers. Here is your chance to help someone in need or for you to get the help you need to get yourself moving again.
- Quirky is for product designers and other inventors that need some help getting their product to market. You submit your idea for $10 and then the community and staff vote on project, as well as providing feedback on the potential success. If your poduct is accepted, then Quirky works on presale of your product. Once your presale goal is met, they produce and market your product, giving you a substantial share of the profits.
For more information go to http://www.quirky.com/
- Software developers can find friends and helpers at CoFundos, which allows open source projects and ideas to develop. Crowdsourcing is used to help projects to fruition. Ideas and projects are put into a bidding process. To learn more go to http://www.cofundos.org/
- Go 4 Funding is a site for existing business owners and entrepreneurs to post their needs for capital. Investors can search the site to see what projects they would like to fund. The people who invest in your project get a share of your company in return.
For learn more go to http://go4funding.com/
- Funding 4 Learning is a website where you can post a picture or video with a description of your educational hopes and dreams. This allows you to raise the funds you need to pay for your educational costs. It is an all or nothing crowd-funding source which means that you must meet your financial goal in order to receive the funding. The site charges a 5% fee only to those who meet their goal. For more information go to http://www.funding4learning.com/
- Pledgemusic is very similar to the other music sites listed, where musicians receive support from the friends, family and fans to allow them to produce their CD independently. All rights to the music are kept by the artists. Artists offer rewards such as copies of CDs, t-shirts, and more. You must meet your funding goal to receive any money. For more information go to http://www.pledgemusic.com/