What does the Pebble watch, the Dash in-ear headphones, the Formlabs 3D printer, and the 3Doodler have in common? They were all created and marketed through funds that were generated via Crowdfunding. Crowdfunding has enabled so many ventures to succeed. It gave budding entrepreneurs, product developers, and small companies the financial push to roll out their projects. The Crowdfunding Reviews you will see below will help you make the most of this new phenomenon in order to finance your own ideas. Who knows? You might have the next best invention in your garage.

What Did We Do Before Crowdfunding?

Traditionally, anybody who needed money for a business, or a project had to go to the bank and secure a loan. Need a new truck for your landscaping business? Get a loan. Have a groundbreaking concept that you want to try out? Get a loan. What the bank does is they use the money deposited by their patrons in order to provide funds for any venture that they deem “safe” enough to return an interest. Unfortunately, bank requirements are very strict and very few businesses and individuals get to secure loans. 

Thanks to the Internet, people can now ask for funding from other people. Investors, people who are willing to put in some money, can choose to back projects. In exchange, they get first access to a new product, receive part of the revenue of a small business, or get a heartfelt “thank you”. Where does the Crowdfunding Reviews come in? Well, to date, there are thousands of websites that support crowdfunding. If you want your project to receive funding, you need to find the right one in the shortest time possible. This review can help you narrow your search down.

Should these Crowdfunding Reviews Matter to You?

Before selecting a crowdfunding website, you need to determine if this type of fundraising campaign will work for you. Remember, coming up with an effective pitch will take a lot of time and effort. This is on top of the effort that you already put into conceptualizing your project or product. If you don’t have the right reach yet, your campaign will not take off. So, ask yourself, do you have enough people in your network to help you spread the words about your crowdfunding effort? If not, continue reading the Crowdfunding Reviews. You might find a platform that can cater to your needs despite having very few people who can help you out. 

What Kind of Crowdfunding Platforms Are There?

There are basically five types of crowdfunding: Royalty, Equity, Debt, Reward, and Donation. You will have to choose from these types so that you know which platform to look for when you are finally ready to launch your own crowdfunding efforts. The companies listed in the Crowdfunding Reviews are not the only ones that exist but are the top ones in each type.

·     Royalty

Royalty refers to the type of crowdfunding where the investors are given a portion of the company’s revenue. The limitation is that only accredited investors are allowed to put in money into these types of ventures. The good thing about this type of crowdfunding is that there is no risk of going bankrupt. You will only need to pay your investors if your venture earns money. 

The most popular Royalty-based crowdfunding platforms are Bolstr and Pave. Pave backs young career-driven people who promise their investors a share of their income for 10 years. It is best for bright individuals who believe that they have a lot to offer. Bolstr helps small businesses turn the people in their community into investors. They make it easier and cheaper for small businesses to connect with investors.

·     Equity

Equity is a type of crowdfunding where the investors become part owners of the business. As the definition states, only businesses are qualified to apply for this type of crowdfunding, and only accredited investors are allowed to put in money. This type is perfect for small companies that are planning to use the money in order to grow. For this type of platform, it is important that the company has a solid exit strategy. 

In case of retail companies, the top Equity platform is CircleUp. And for start-ups of various industries, your top option is AngelList. Another option is Seedinvest. This platform is hands-on when it comes to matching investors with clients that are seeking funding. The only downside is that they have a very stringent vetting process so, it might take a little time getting your funding approved. 

·     Debt

Debt is a type of crowdfunding that works very similarly to banks. The only difference with getting funding here as opposed to securing a loan from the bank is that they offer funding for lower interest and the approval takes a much shorter time. This is perfect for companies that can show proof of cash-flow and have collateral. 

The very first US-based crowdfunding platform, Funding Community, falls under this category. If you get funding from this group, you would have to settle a 2.5% origination fee for your initial loan in a 2-year period. There is also a 0.5% service fee that goes to the lenders. Other top Debt-type crowdfunding platforms are Prosper and Lending Club. Prosper boasts of covering over $5 billion in funded loans. Reading Crowdfunding reviews from various trusted sources should help you learn more about this.

·     Reward

Reward is a crowdfunding type that provides investors with access to interesting goods or services. This is the best type of crowdfunding for fun and innovative items. If you have a product that you know would solve a problem for a lot of people, you might want to explore this type. The only problem here is that a lot of the ventures fail to meet their goals. Statistics says over half of those that post on platforms under this type fail to launch. 

But, if you had enough following, you can raise your goal amount in just days. One of the most popular name in this field to date is Kickstarter. It is geared towards promoting projects from creatives such as filmmakers, musicians, artists, and the like. For projects in the fields of civics, business, and science, there is RocketHub. For this platform, you will have to pay them 4% of what you raised if you complete your campaign. You can equip yourself with more information when you read a few Crowdfunding reviews.

A fairly new platform under this type of crowdfunding is Crowdfunding Bum. This one does not have a platform fee (yet) so you need to make the most of that and act fast. They also have this principle of paying it forward. Every member who wishes to launch a campaign pledge 3% of the total funds to another campaigner of his or her choice. This way, all the campaigners get a chance to get funds for their projects. They also have a community of built-in backers so you are assured that you will receive some money for your venture. 

·     Donation

Donation is the type of crowdfunding that is designed for philanthropic or non-profit projects. Platforms such as WeDidIt, Youcaring, and gofundme help individuals or groups raise money for whatever endeavor they wish to undertake. The investors get nothing monetary in return. They only get the great feeling of knowing that they aided somebody.

How Do You Go About Getting Funding for Your Venture Through Crowdfunding?

The very first thing to do is to consider the goals of your project. Ask yourself, “Will people want to give up their hard-earned money for this?” Once you have established that, choose the right platform for your project. Reading Crowdfunding Reviews is essential in this area. Are you a small business? Go for a platform that caters to small businesses. Is the project to mass produce and roll out a product? Once you have selected a platform, you will need to start working on your pitch. This is probably the most crucial thing that you have to work on. You need to make sure that you:

  • Create a message that will allow people to connect to your cause 
  • Present the pitch creatively
  • Highlight the rewards or “perks” that people will get should they choose to become your investor

If you have the smarts to come up with a great product but are having a hard time coming up with a good pitch, you might need some help from a consultant. Crowdfunding Bum offers this type of service free of charge. 

Conclusion

While it is your project or product that is the heart of your campaign, the platform can have a huge impact on you being able to reach the right people to generate funding. Hopefully, the Crowdfunding Reviews that you have just read will help guide you in the right direction.

Final thoughts.

We hope you stick around a while to find out more about all that Crowdfunding Bum has to offer. You will find ample reasons to choose us as your funding source.

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