Top 5 Crowdfunding Websites

One of the great things about being in such an interconnected world is that just about anyone can get noticed. High school students from small boring towns become overnight sensations, thanks to YouTube, virtually unknown people suddenly become famous because of Internet memes, and even your pet can suddenly have millions of fans, thanks to social media.

Yup, the Internet has definitely paved the way for zeros to suddenly become heroes, and not just in terms of fame and entertainment. A lot of people have made real money and built businesses by raising funds through crowd funding sites.

For the uninitiated, the term crowdfunding refers to the practice of "cooperation, attention and trust by people who network and pool their money together" to bring to life a cause or project. It's very rewarding not just for the fundees, but the funders as well because Crowdfunding websites give people the chance to discover interesting projects and causes.

This week's Top 5 Friday post will feature the five best crowdfunding sites on the web. Check them out below, and happy funding!

1. Kickstarter - Considered as one of the biggest and most well-known crowdfunding sites out there, Kickstarter has successfully funded over 22,000 projects and to date, and over $214,000,000 has been pledged. Types of Kickstarter projects range from fashion and art, to technology, games, publishing, and more. Each project is put to all-or-nothing funding, which means that if a project doesn't meet its desired amount of funds by the end of a given time-frame, the project won't get funded altogether. People that pledge money to a project get certain rewards, depending on the amount that they contribute.

2. Crowdfunder - Kickstarter is to projects, while Crowdfunder is to companies. It's a Business Crowdfunding platform that will enable U.S. startups and small businesses to raise funds through public offerings of equity, debt and revenue based securities sold to individual investors. A company creates an online profile and submits a funding goal. The Crowdunder team will then do a background check on the business to ensure that it's legit. Once the campaign is approved, visitors can view them on the site and decide if they want to invest. If the funding goal is reached, the funds are transferred to the company, and the funders become shareholders.

3. Indiegogo - Another site for funding projects, Indiegogo offers two funding options. Compared to Kickstarter that provides an "all or nothing" funding system, Indiegogo offers Flexible Funding that will allow fundees to keep the money that they raised even if they didn't reach their goal. However, this comes with 9% fee. There's also the Fixed Funding option where fundees will have to reach their goal, otherwise, the money will be refunded.

4. Mircorgiving - This website is more about helping people in need rather than funding projects. If you have a soft spot for helping people, then this site is for you. Microgiving features the stories of various individuals, from people that need funds for medical support, to victims of calamities and domestic violence. Anyone can raise money through the site, and a small slice of each donation will also go to a charity of the fundee's choice.

5. Appbackr - Think of it as Kickstarter for mobile apps. Appbackr enables app developers to raise funds for their apps while funders (also known as "backrs") will get the chance to make money by buying copies of the apps at wholesale prices and get a return when the app actually sells. You can choose to back concept apps, where funds will be used for app development, or you have the option to fund existing apps in the app store.

Image credit: Serge Melki on Flickr

Recommended

Join Pointcom

Receive pricing updates, shopping tips & more!