Characteristics of the best crowdfunding site for your small business will vary depending on your specific needs and circumstances. However, many will have a combination of low fees, a long timeline for raising funds, flexibility in allowing for a wide range of business types, and more. You can also see many offering additional support resources to help ensure a successful fundraising campaign, as well as low minimum funding requirements.
You’ll have many choices when it comes to crowdfunding platforms. To save you time, I’ve researched the most popular ones and narrowed down the list to the following seven best crowdfunding sites to suit various business circumstances:
- GoFundMe – Best overall for individuals and small businesses
- Kickstarter – Best for growing small businesses
- Indiegogo – Best for industry inclusivity
- StartEngine – Best for experienced investors
- Fundable – Best for scalable startups
- Patreon – Best for creatives
- Mightycause – Best for nonprofits
Best Crowdfunding Sites for Small Businesses at a Glance
Best For | Fees | Campaign Time Limit | ||
|---|---|---|---|---|
 | Individuals & smaller businesses | Transaction: 2.9% + $0.30 | None | |
 | Businesses with high growth potential | Platform: 5% Payment processing: 3% + $0.30 | 60 days | |
 | Businesses of all industries | Platform: 5% Transaction: 2.9% + $0.20 | 60 days | |
 | Working with experienced investors | Reg CF: $4,000–$10,000 Reg A+: $50,000–$100,000 | Reg CF: None Reg A+: 3 years max. | |
 | Scalable startups | Platform: From $179/month Transaction: 3.5% + $0.30 | 90 days | |
 | Creative entrepreneurs | Platform: 5%, 8%, or 12% of monthly revenue Payment processing: 2.9% + $0.30 | None | |
 | Nonprofit organizations | Payment processing: 0.95%–1.99% Transaction: $0.29–$0.49 | None |
GoFundMe: Best Overall for Individuals & Small Businesses
Pros
- Donation-based platform with no expectation of return
- Popular site with a broad audience
- No platform fees to start a campaign
Cons
- Lots of competition
- Better suited for individual projects
- Limited campaign support resources
Platform Highlights
- Over $30 billion raised for various campaigns
- More than 150 million donations sitewide
- Campaigns span across 19 countries
- Funds can be immediately withdrawn
- 2.9% + $0.30 transaction fee
GoFundMe was founded in 2010 and has since grown as a popular donation-based crowdfunding platform with a large following. It hosts individual campaigns mainly for personal reasons; however, it can be used to source funds for various business purposes.
The site attracts a broad audience and claims to receive, on average, a donation every second. It’s simple to use, as no platform fees are required to launch a campaign. Only a transaction fee of 2.9% plus $0.30 is applicable, which makes for competitive fees and terms of use compared with other crowdfunding sites listed in this guide; StartEngine and Mightycause also don’t carry platform fees.
GoFundMe offers 24/7 customer support and also provides resources to help promote a successful campaign across the site.
I chose GoFundMe as the best option for individual fundraising efforts because of its ease of use and popularity. It requires no returns to those who donate, and all funds can be withdrawn immediately—regardless if you meet your initial fundraising target.
Another perk is that there’s no time limit as to how long you can run your campaign. This is particularly helpful for new startup businesses needing time to gain a following. That being said, GoFundMe tends to be more successful for businesses that are already established but can attract an audience.
Should you need a resource to help you promote a successful campaign, check out our guide on how to crowdfund a business.
Kickstarter: Best for Growing Small Businesses
Pros
- Trusted source with a large audience
- Competitive fees
- Inclusive of early-stage businesses with a wide variety of projects
Cons
- Projects can’t offer equity or investment opportunities
- Overcrowded market
- Must meet fundraising goal to receive disbursement
Platform Highlights
- Over 250,000 projects funded
- Over $7.9 billion in funds raised
- Exceeds over 94 million backers
- All-or-nothing funding model
- 5% fee based on total raised funds
- 3% + $0.30 payment processing fee
- Pledges under $10 have a fee of 5% + $0.05 per pledge
Kickstarter was founded in 2009 and designed to foster the creative visions of startups creating something to share with others. It has since been a trusted crowdfunding resource in which startups can source funds from a diverse group of donors to help grow their businesses. With a 41% success rate across 15 project categories—including art, film, dance, technology, and design—Kickstarter has plentiful success stories for a wide variety of businesses.
Campaigns can last up to 60 days and take an “all-or-nothing” funding approach. It has a different approach from Indiegogo, which allows you to keep all funds raised. However, Kickstarter’s large audience base provides ample fundraising opportunities.
Kickstarter is a popular and reliable crowdfunding option for startups looking to raise capital without having to give up equity or pay back funds. It offers competitive fees and has a vast audience to promote your campaign. That being said, you must meet your designated funding target to reap the benefits of your fundraising efforts.
It’s my best pick for growing businesses that have limited resources and are looking to both market their product and obtain funding. Keep in mind that Kickstarter supports creativity and is only accessible to businesses that develop something to be shared with others.
Indiegogo: Best for Industry Inclusivity
Pros
- Competitive fees and funding options
- Expert’s directory and education resources
- Available to various industries across many countries
Cons
- Higher fees than other platforms
- Takes a percentage of funds raised
- Large platform with competing projects
Platform Highlights
- 60-day campaign time limit
- Over $1 billion raised across all projects
- More than 11 million backers across 223 countries and territories
- Both fixed and flexible campaign methods
- Connects investors with various startups based on their interests
- 5% platform fee
- Charges 3% + $0.20 transaction fee to investors
- Rewards-based crowdfunding method
Indiegogo, a leading rewards-based crowdfunding platform founded in 2008, provides entrepreneurs with the opportunity to raise startup capital and promote their products or services to an audience of early investors. Each month, millions of people visit Indiegogo, and over 19,000 campaigns take place.
It caters to users across all business industries—whether it be tech and innovation, creative works, or community projects. Campaigns can last up to 60 days and can be either fixed or variable, meaning you can either set an “all or nothing” target or keep any funds raised despite the amount.
What’s unique about Indiegogo is that it is more than just a crowdfunding resource; it offers prelaunch assistance and allows investors to partake in stages from business ideation to manufacturing. Educational resources on how to build your campaign and aim for success are also available. Another noteworthy feature is the expert’s directory, which enables entrepreneurs to seek support from experienced investors to help further promote their ideas and business goals.
What makes Indiegogo one of the top providers on this list of the best crowdfunding platforms for small businesses is the industry and financial flexibility it provides. Consider it if you’re looking for a trusted platform that’s community-oriented with a wide range of potential investors. Keep in mind that it is a rewards-based method of crowdfunding and is best suited for businesses unable to offer equity stakes or partake in debt-based methods.
Its flexible option allows businesses to continue to raise funds and receive monthly disbursements, or rather if your product requires a set timeline, a fixed option. Fees are competitive overall—so Indiegogo is a good place to start when looking at options to crowdfund your business.
StartEngine: Best for Experienced Investors
Pros
- Equity investments
- Options to hold or sell investments
- Available to startups across various industries
Cons
- Higher fees and upfront costs than similar platforms
- Newer crowdfunding site
- Funds will be returned if target isn’t met
Platform Highlights
- More than $1.2 billion raised over 1,000 funding rounds
- 3.5% fee on top of shares price
- Investor network of over 1.8 million
- Dedicated team to help launch a campaign
- Reg CF option allows fundraising up to $5 million, with no to minimal upfront cost in 4-6 weeks
- Reg A+ option allows fundraising up to $75 million for established businesses seeking seed money
StartEngine is a relatively new crowdfunding platform, founded in 2015. It’s notably one of the largest equity crowdfunding sites, with a large network of over 1.8 million experienced investors. To date, it’s raised over $1.2 billion over various funding rounds and has a dedicated team to help entrepreneurs strategically market their campaigns and seek the best returns.
The site supports crowdfunding efforts for startups from a large variety of industries and claims that 90% of offerings reach their minimum funding goal. Notably, it also offers rolling closes, which means funds can be withdrawn for immediate use during the campaign. However, this is only applicable after you’ve reached 120% of the target since funds will be returned to investors within 10 business days if you miss your funding goal.
There are two tiers in which you can campaign:
- Reg CF allows startups to raise up to $5 million per year through platforms registered with the SEC and can be launched in four to six weeks.
- Costs to invest range from $4,000 to $10,000.
- No upfront costs if your business is incorporated as a Corporation and your maximum raise limit is set to $107,000 to start.
- Reg A+ provides up to $75 million in crowdfunding. It usually takes a minimum of six months to complete this method. Businesses will also need to provide legal documentation speaking to the incorporation of a business, alongside audited financials.
- Costs to invest run anywhere from $50,000 to $100,000.
StartEngine is a reputable crowdfunding site that connects businesses with seasoned entrepreneurs, making it one of the best crowdfunding sites for small businesses working with experienced investors. While sites like Funding Circle can also connect you with credible investors, StartEngine lets you choose to offer equity instead of debt as a return. While it is a bit costly compared with other crowdfunding platforms, it’s a viable resource for established businesses seeking capital to grow their business further.
It is accessible to a wide variety of industries and has a solid track record. It also offers a dedicated team that will support businesses from the beginning to end of their campaign, from marketing to their investor audience to how to help a valuable return.
Fundable: Best for Scalable Startups
Pros
- Rewards and equity-based crowdfunding methods
- Marketed specifically toward small businesses
- Campaign support and resources
Cons
- Subscription fee required
- All-or-nothing campaign funding models
- Higher fees than comparable platforms
Platform Highlights
- More than $700 million in funds raised
- Over 20,000 accredited investors
- Self-Managed and Funding Accelerator campaign options
- Subscription fee starts at $179 monthly
- Transaction fee of 3.5% + $0.30
Fundable was founded in 2012 with the intent of helping startups continue to grow their business through rewards- and equity-based crowdfunding. Since its inception, over $700 million in funds have been raised with the help of over 20,000 accredited investors.
It offers both equity and rewards-based methods, along with the option to self-manage your campaign. You can also choose to partake in its Funding Accelerator option, which provides campaign support and resources—such as a pitch deck, investor outreach assistance, and monitoring tools to promote a successful campaign further—all of which can be useful, given that Fundable offers an all-or-nothing funding model.
There’s a $179 monthly subscription fee required to host your campaign, along with a transaction fee of 3.5% plus $0.30. While the transaction fee is comparable to other crowdfunding sites, the monthly subscription cost can be expensive over time. However, it’s worth noting this helps cut the competition of other businesses seeking a crowdfunding platform.
Fundable is best suited for scalable startups that already have a working product and following. It presents the opportunity to obtain funding to scale a business further, whether it be for product development or team growth. While available to many businesses across various industries, it may be of particular interest to tech startups, as there are many success stories on Fundable’s site referencing the deployment of tech products.
Patreon: Best for Creatives
Pros
- Ongoing fundraising opportunities
- Over 8 million active monthly subscribers
- Support to market your business
Cons
- Tough to stand out on an overcrowded platform
- Aimed mainly at creatives
- High monthly fees of up to 12%
Platform Highlights
- Platform hosts over 250,000 creators
- Tiered subscription options available to patrons
- Suitable for creators who produce ongoing content
- Has accumulated over $3.5 billion in revenue
- Monthly platform fees: 5% for Founders tier, 8% for Pro tier, and 12% for Premium tier
- 2.9% + $0.30 payment processing fee
- Micropayment fee of 5%-6% + $0.10 for payments of $3 or less
Patreon, founded in 2013, is a crowdfunding platform designated for creatives. It offers a unique crowdfunding structure that is essentially rewards-based; patrons purchase a subscription offered by the creator and, in turn, receive content and other benefits as outlined by their membership. Instead of an investment or one-time donation, businesses can use Patreon to obtain funds repeatedly without a funding target or timeline.
A Patreon account is free to create, but there is a monthly fee depending on the tier you choose. Each offers varying benefits and tools to the creator.
- Founders: 5% per month
- Pro: 8% per month
- Premium: 12% per month
Patreon is suitable for businesses generating creative content, therefore ranking as the best crowdfunding site for creatives. It’s a unique funding opportunity for businesses planning to use it to market their services consistently and to provide fresh content regularly.
As such, funding will fluctuate based on the subscriber count and the types of memberships the creator chooses to offer. Overall, Patreon is a great way to source recurring income if you’re not seeking a one-off fundraising opportunity.
Mightycause: Best for Nonprofits
Pros
- Free demo available
- Year-round funding campaigns
- Funds are accessible regardless of target amount
Cons
- High monthly fees to use the platform
- Specific to nonprofits
- Some features are only accessible in the higher plan
Platform Highlights
- All-in-one platform (fundraising, CRM, data analytics)
- Customizable widgets and campaign site
- Multiple campaign products available
- Setup one-time or recurring donations
- Unlimited fundraising efforts
- Essentials tier at $79 monthly; Accelerate tier at $119 monthly
- Payment processing fees of 0.95%-1.99%
- Transaction fees of $0.29-$0.49
Mightycause is a donation-based crowdfunding platform that was founded in 2006 to aid nonprofits by connecting them with interested donors. It’s a unique platform in that it serves as a software service that can be used by a business to promote its fundraising efforts on its own site and is compatible with other CRM platforms. There’s an unlimited variety of campaigns applicable, from peer-to-peer to team and event fundraising.
It offers two product packages, and each has tools such as donation management, a widget for your site, and other analytics tools.
- Essentials: $79 a month; includes basics such as profile management, donor data, and unlimited campaign opportunities
- Accelerate: $119 monthly; includes all elements of the Essentials monthly plan, along with integration opportunities and communication channels
Mightycause offers flexibility and is a low-cost option for nonprofits looking to market their campaigns. Rates are highly favorable in contrast with similar donation-based platforms, and its transaction fee starts at 0.95% + $0.29, although it can vary slightly depending on the payment vendor.
Mightycause is an innovative site specific to helping nonprofits with their fundraising efforts. It’s one of our best crowdfunding sites for small businesses because of its price point and unique fundraising abilities. It can be used by nonprofits needing a platform that can support ongoing donation campaigns and help market their needs for further outreach.
How I Chose the Best Crowdfunding Platforms for Small Businesses
I chose the best crowdfunding sites for small businesses in consideration of a few key factors:
- The fees required to use the platform and process payments
- Inclusivity of various business industries
- Whether the funding model is “all or nothing” or if you can keep all funds raised
- If the platform can reach a large audience
- The method of return to investors (rewards-based, equity-based, donations-based, or debt-based)
- Ease of use to start and promote a campaign
How You Can Choose the Best Crowdfunding Platform
Selecting the right crowdfunding platform can be critical. Not only can it determine whether your campaign succeeds or fails, but it can also impact the amount of fees you pay and the net proceeds you’ll receive. Resources and support that may be offered can also play a large role in the future success of your company.
At a minimum, I recommend considering the following factors before making any final decisions on the crowdfunding platform you’ll use.
Crowdfunding platforms can charge various fees, which cut into your net available funds from the campaign. As a result, it’s important to know which ones may apply to you, as well as how much you’ll have to pay, as this could impact your total funding goal. Below are fees commonly charged by crowdfunding platforms:
- Setup fees: This may be charged for each individual fundraising campaign you set up and can often range between $0 and $200.
- Platform fees: Commonly deducted from the gross amount of funds received and typically calculated based on a percentage of those funds. If charged, this is usually between 2% and 5%.
- Transaction/Payment processing fees: Some platforms charge a fee to cover the provider’s costs of transferring funds to your business.
- Subscription fees: Certain platforms, such as Patreon, charge a monthly fee for your business to continue fundraising efforts. If charged, typical costs are between $100 and $200 per month.
- Micropayment fees: Usually charged for payments below a certain threshold, these can range between 5% and 10% of the payment being made.
This refers to the length of time you can advertise and receive funding for your campaign. Crowdfunding platforms with longer time limits can allow your business to gain more exposure to investors. However, this often comes at the expense of additional fees. Crowdfunding platforms with shorter campaign time limits, on the other hand, generally have significantly lower fees.
Some crowdfunding platforms operate on an “all or nothing” fundraising model. If you don’t meet the specified minimum crowdfunding amount, your business will not receive any of the money that was raised. Depending on the platform, you could also be out any setup fees you may have paid to create the campaign.
By contrast, crowdfunding platforms that do not have a minimum funding requirement can help ensure that you’ll receive some money regardless of how successful your fundraising efforts are.
Depending on your industry and the type of business you’re running, some crowdfunding platforms may not be able to service you. This can be especially true in the case of products or services that may not be legal on either a state or federal level. Even if legal, some crowdfunding platforms simply may not offer funding services if they don’t specialize in your company’s product offering.
The success of your crowdfunding campaign will largely depend on how many individuals are aware of it. Certain crowdfunding platforms specialize in certain business products or service offerings, which can impact the type and number of investors that are active on the site.
Consider how quickly you anticipate needing to have access to funds, as crowdfunding platforms handle the disbursement of funds on various timelines. Some may allow access quickly within 24 to 48 hours of your campaign ending, while others may take several days or even weeks.
Alternatives to Crowdfunding
In the instance you decide crowdfunding isn’t the best fit for your business and are instead seeking other startup financing options, you should consider the following:
- Angel investors: In exchange for equity stakes in a business, angel investors provide seed money to startup businesses with high potential for returns. Our article on how to raise angel funding will guide you through the process.
- Personal business loan: If you don’t have an established business to qualify for a small business loan, you can use personal loan proceeds to get your business up and running. Refer to our roundup of the best personal loans for business funding for our recommendations.
- Rollover for business startups (ROBS): Use funds from your personal retirement account with an investment of $50,000 or more. To learn more about ROBS, read our ultimate guide to Rollover for Business Startups.
- Small Business Administration (SBA) loans: For businesses with solid credit history, SBA loans can provide financing for various business needs. They typically offer favorable rates and terms because they are government-backed. Check our SBA Loans: Types, Rates & Requirements article for more information.
- Small business line of credit: Similar to credit cards, a small business line of credit can provide access to revolving loan funds that can be drawn and repaid over some time. For guidance, head over to our guide, Small Business Line of Credit: Rates, Requirements & Terms.
When it comes to getting a small business loan, the strength of your credit and finances will not onlydetermine not only your odds of getting approved but also the rates and terms the lender will offer.
Frequently Asked Questions (FAQs)
Yes. It varies depending on the platform you choose, but most sites usually charge a platform fee and a transaction fee. These fees often range between 2% and 5% of the total amount raised.
Yes. Unless it’s specifically prohibited in the terms and conditions of a crowdfunding platform, you are not limited to the number of sites you can use for fundraising.
This depends on the crowdfunding platform you select. Some have no time limit, while others allow for up to 60 or 90 days.
Bottom Line
When searching for the best crowdfunding platforms for small businesses, it’s important to consider which site offers features and advantages that benefit your business campaign goals. You’ll need to factor in your preferred crowdfunding method, your fundraising target and timeline, and your target audience. Before choosing a platform, ensure it’s sustainable for your budget and meets your campaign needs.
