Nowadays, it’s getting harder and harder for small businesses to qualify for financial assistance from lenders as approval rates for funding businesses grows scarce. Fortunately, business owners have more options than ever when it comes to getting money for their businesses and these options are not just limited to business owners themselves but to anyone with an idea or cause that they feel is important to them through crowdfunding. If you don’t know what crowdfunding is it is basically the practice of raising funds for future projects or ventures from a large number of people. There are many crowdfunding platforms released every day but among them, there are a few that have existed long enough to build a reputable track record with satisfied customers and below are 8 of some of the most popular ones with businesses.
Peerbackers is a crowdfunding website that bankrolls innovators and entrepreneurs hosting thousands of projects around the world in the areas of business, municipal needs, and creativity. Not only do they provide funding to entrepreneurs but they also offer educational services to those interested in learning about how crowdfunding works through their online video guide Crowdfunding Academy. Peerbackers also work with student organizations to include partnership projects working with teenage entrepreneurs under 17 years old.
Endurance Lending Network
This web-based lending platform helps small businesses in need reach out to alternative lenders such as debt funds, family offices, and individuals who can provide them up to half a million dollars in debt capital. It uses web-based on-boarding to filter and accumulate opportunities into investment pools. Because of how sophisticated these methods used to measures these opportunities are it is considered more proficient for entrepreneurs to use as opposed to traditional banks.
At first, this crowdfunding site was focused mostly on the arts but it has now broadened its focus to include education, science and business projects. Like Peerbackers it also has an education program focused on helping people launch successful crowdfunding campaigns called “Success School”. It is currently partnered with A&E Networks to which it will choose selected few projects to receive extra assistance through joint initiatives.
Kickstarter, one of the most well-known crowdfunding websites out there, has an extensive reach on projects they support mostly in the areas of entertainment such as gaming, the arts, and technology. Though it’s not generally focused on small businesses it does fund innovative products created only in the U.S, Canada, and the U.K and while it does have a great reputation for launching successful campaigns people interested in using this platform must be aware of the rigorous application submission process that has turned down quite a few applicants.
Somolend is a peer-to-peer platform for small businesses helping those that qualify receive debt-based investment funding and even assistance from family and friends to help support them in their endeavors as well. Its targets are mostly brick-to-mortar companies and unlike most lenders don’t rely on FICA scores but they do require a business to have on hand a year’s worth of receipts.
AngelLists helps connect startups with high profiled investors and entrepreneurs in the tech field. Initially, its focus was not on crowdfunding but as of now AngelList has managed to fund a growing number of tech startup deals and has positioned itself as the best player for the JOBS Act.
MicroVentures sometimes self-identifying itself as”investment bank for startups” is an equity crowdfunding website geared towards helping startups get investment from angel investors through its SEC-approved online platform which allows them to invest small amounts of their capital on them. They not only connect accredited investors with startups but also help businesses and services raise funds and take part of secondary marketing activities.
Quirky is a website that connects a like-minded community of inventors who want to bring their product ideas to life. They crowdfund through donation-based funding and take part in collaborative efforts with inventors in making their ideas successful.