Crowdfunding: An Overview
With the emergence of technology, the world has transformed into a global village. The umbrella of technology covers everything ranging from online shopping to working from home. Crowdfunding is one of the tech gifts the modern world is blessed with. It refers to raising funds for a cause or project while virtually involving many people. Individuals or young entrepreneurs can benefit from it. There are many crowdfunding platforms in US some of them mentioned below that work with complete transparency.
Crowding Funding in US
We are talking about one of the richest countries in the world. Still, its increasingly large population and migration of people of different races and backgrounds from other parts of the world has somehow pushed a sizeable section of the population towards poverty. The perks of being an American nationalist are not being fulfilled to their maximum level by its residents due to the global unstable economic state. But at this level, many kind-hearted souls who have enough finances are willing to help small-scale businesses and youngsters through different platforms. Let us brief you a bit about some of the best crowdfunding platforms in US that are a great option for nonprofits and profits!
This platform specifically offers around 500,000 US dollars in debt crowdfunding to small-scale businesses. The term for the debt is up to five years, and it has raised more than 8.6 billion US dollars. The interest rate of this website starts from 4.99 percent. If the loan is funded up to 8 percent, it doesn’t include the fee charges. However, good credit and recent business growth, and decent income are mandatory to be suitable for it.
One of the best crowdfunding platforms that have raised more than five billion US dollars, GoFundMe is a perfect choice for donors living in the US. The platform charges no fees; only transaction fees will be deducted upon receiving the funds. Certainly, it is a premium pick in the category of crowdfunding platforms in US.
It is one of the earlier platforms which have earned a decent reputation through its strong growth and many emerging campaigns in the past few years. This site specifically deals with donation-based funding of creative projects. It covers many creative projects, including selling a music album or any art-related installation. However, Kickstarter is not for small businesses and individual financing needs, including charity.
It also offers debt crowdfunding to small businesses in America. The good part is that there are no specific interests, and loans also don’t surpass the limit of 10,000 US dollars. All a person has to do is plan a campaigning strategy and work with an organizational representative to get qualified for it. Moreover, there is no credit checking here; it works by checking a person’s credibility with his peers. This site has raised 1.25 billion US dollars worldwide.
This is a site for people with small-scale farming businesses and those who are more into healthier and organic lifestyles. It has a community of over thirty thousand people who provide contacts and crowd source advice and rewards crowdfunding facility. It claims that it has a success rate of a whopping 65 percent! The largest amount raised so far is 93,190 US dollars. Prospecting projects pay a fee of almost 5 percent, depending on the amount being raised.
This site is among the fastest-growing networks specifically for investors, as its domain lies in raising investments but not rewards. Among the more recent ones, and certainly doing a fine job!
This site also promotes donation-based creative projects. Their unique FuelPad and LaunchPad programs play a bridge role in connecting the campaign owners with marketing and promotional partners, leading to the collaboration and success of a campaign.
Quirky’s value lies in the provision of excellent community services. If a person is a tinkerer, thinker, or innovative in one way or another, then Quirky is the platform to crowdfund. It also collaborates with donation-based funding with other like-minded people around. They bring value addition by assisting in designing a product and hence play a role in community service.
If a person is an IT expert or a programmer and wants to launch a new mobile application and search for a donation, he should visit this site and contact their mobile app development community.
The platforms above provide generalized information-based data. Whether a person wants to bring innovation to his work or wants a fresh start, he must look into the websites for a detailed look. Although an overall idea regarding each platform has been delivered through this article for deeper understanding, it’s better to check these sites. It will assist in making suitable choices for oneself and his dear ones. Moreover, it will also keep them updated regarding new business trends. On an optimistic note that you learned plenty from this brief about how crowdfunding works in the US, we bid you farewell from space! and don’t forget to donate online to any one of them if you like!