01 KickstarterWith more than US$ 480 Million raised on projects by over 3 Million pledges , Kickstarter has emerged as a leader in the current crowdfunding scene. Currently usingthe donation model for creative based projects, but there has often been talk about whether they will start offer equity to investors but founder stated that Kickstarter is “not interested in that model.”
Like Kickstarter, Indiegogo is a popular crowdfunding platform notably raised $15 million in Series A funding. The company claims that this is the largest funding round of any crowdfunding platform to date. Indiegogo was a supporter of the JOBS Act, and founder Slava Rubin said that the company may very well decide to open up the platform to equity transactions in the future.
is a US based crowdfunding website for raising equity or debt investments for startups. Only accredited investors can invest. It was founded by Naval Ravikant and Babak Nivi, and provides templates for creating term sheets that reportedly reduce the legal fees and a recruiting portal. The company is looking at crowdfunding with unaccredited investors now that the US JOBS Act has been passed. In 2013, AngelList entered into a partnership with CrunchBase, an online tech company database.
Founded by serial entrepreneur Wil Schroter, Fundable is currently running a rewards-based funding platform while also offering accredited investors the opportunity to invest in small business for equity. Schroter plans to fully open the gates as an equity platform once the new law has been implemented.
This Los Angeles-based company, has took a different approach before the JOBS Act rules came into effect, offering equity through the site. Companies can apply to raise funds and users can vote on those they would invest in without any transactions actually taking place. Nearly 2,000 companies had signed up with crowdfunders pledging $17 million in investments before they were able to transact. Crowdfunder also held a series of contests in cities around the US where local businesses were judged by a panel of investors and compete for $25,000 in funding. The first event, was called Crowdstart LA, and elicited over 700 submissions.
In an effort to raise awareness about the JOBS Act and educate consumers about its benefits, EarlyShares recently announced a U.S. tour, hitting 24 cities in 24 weeks on a Nationwide Educational Roadshow. The company is also co-sponsoring Techweek Launch, a startup competition that offers one winner up to $100,000 in cash and prizes. Although the company claims to be “the premiere Portal for Equity Based Crowdfunding” they say they can’t list real companies on the site and are only taking pre-registrations. Private businesses and startups will be able to use crowdfunding to give equity to investors who will get an actual monetary return instead of a sticker or T-shirt.
Launched by a group of young Wall Street alums getting their MBAs at The Wharton School of the University of Pennsylvania, SeedInvest recently won third place at Philly Startup Weekend 3.0. Founder Ryan Feit said that following their win, he’s had a lot of people from the Philadelphia community reach out to him about investing and is in the process of seeking a round of funding. The site is still in the pre-launch phase but entrepreneurs and business owners can apply for early access.
offers "anyone with an idea, project, business, or invention" a way to tap crowdfunding. The site coordinates donations or gifts from funders and the "rewards" offered by entrepreneurs (ranging from product samples and company updates to invites to product release parties) in a format similar to KickStarter. This is an exceptionally easy site to navigate.
A group of venture capitalists, entrepreneurs and investment bankers have teamed up to launch RelayFund, which is the creation of investment banking firm Hartwick Capital and investor relations firm Lambert, Edwards & Associates. According to a press release the founders view crowdfunding for equity as “the next major catalyst in transforming the capital markets and connecting everyday Americans with private equity.” The press release also calls RelayFund “a leading online community focused on second-generation crowdfunding…” but the site has yet to launch.
Equity-based crowdfunding is already legal in the UK, and CrowdCube has been around for a few years already. They’ve raised £2.8 million for 15 companies so far. The company hasn’t announced any plans to expand into the U.S. market but given their experience compared to these new domestic players, they are positioned well to do so.
The new kid on the block, of course there is always our own unique crowdfunding platform that offers the opportunity for donations and give backs or investments and has been developed to allow global funding and investment opportunities for everyone. Fundedflow provides a social community news and support network to provide a complete resource foe startups and entrepreneurs alike.
1. Crowdfunding offers startup entrepreneurs a new online source of startup capital.
2. Many crowdfunding sites, such as KickStarter, PeerBackers, and InvestedIn, require small business owners to provide a reward to investors, such as a product sample, exclusive company updates, or an invitation to a product release party.
3. Business owners need not put all of their eggs in one crowdfunding basket: Joining several sites can help you reach more potential funders.
What other equity crowdfunding platforms are on the horizon? Put it in the comments.