Which crowdfunding platform to use?
Kickstarter.com may well have been the first successful crowdfunding platform in the world.
Since then, many platforms have emerged and transformed.
When you are raising money from the crowd, you need to find the platform that fits your product
and funding goals best.
Public versus private
Most platforms are public: everyone can see all deals. If you raise on these platforms, be ready to share *all* your details with the whole world. Some platforms offer (way) more privacy, but those are often more difficult to get listed on.
Rewards, (convertible) debt or equity
Most platforms let startups offer rewards and (convertible) debt in return for funding. A couple also offer equity crowdfunding. Make sure you know what you want to offer and check out which platforms are specialized in that type of crowdfunding.
Ask for success rates: how many companies have sucessfully been funded? By how many people? And how much per person? And what is the average total amount for deals? How many deals have failed? It gives you an insight in the possible success of your raise.
Be sure to compare! Some platforms take a huge chunk of the amount raised. While others take (almost) nothing and get paid once your startup becomes a success. Don't overpay, but also: don't be penny wise, pound foolish. Choose the platform that fits best overall.
Biggest crowdfunding platforms
We've listed some well known crowdfunding platforms below. Please note, we focus on platforms that you can use to finance your for-profit business:
» Kickstarter (mostly for pre-selling your product idea)