The startup ecosystem is growing by leaps and bounds with every passing month. As of now, there are around 77,672 well-established startups in the USA. Moreover, On average, the United States sees 4.7 million new business registrations yearly. This paints a rather good picture of the startup landscape of the USA. However, if you’d ask any successful entrepreneur about the most challenging part of their journey, they would probably say that securing the first funding is the most difficult part. For this reason, we will list the best crowdfunding platforms in the USA. So, stay tuned to the very last.
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Best Crowdfunding Platforms In The USA
Before starting the list, we must tell you that these crowdfunding platforms are some of the best platforms in the USA and are not listed in any particular order.
#1 Kickstarter
Kickstarter is a pioneer in the crowdfunding industry and has been in the business for more than 15 years. Its portfolio is filled with creative projects and startups offering innovative products. Unlike many other crowdfunding platforms, Kickstarter uses a reward-based system. They award things like pre-orders or exclusive merchandise to the backers. Another thing specific to Kickstarter is its all-or-nothing approach, meaning a startup will only get the funding if it reaches its funding goals.
#2 StartEngine
Unlike Kickstarter, which has a reward-based system, StartEngine is a good choice for startups looking for equity-based crowdfunding. This allows them to raise funding from accredited and non-accredited investors. Generally, StartEngine charges around 7% to 12% in fees, depending on the investment method. On top of that, StartEngine boasts a big portfolio of startups with a total crowdfunding figure of around $650 million.
#3 Ingiegogo
Ingiegogo is similar to Kickstarter. It also offers reward-based and equity-based crowdfunding, which makes it more accessible to a wide range of startups and audiences. This is among the crowdfunding platforms that cater mainly to technology-based startups. Since its launch in 2008, Ingiegogo has funded more than 800,000 startups and counting.
#4 SeedInvest
SeedInvest is another equity-based crowdfunding platform that specializes in funding startups from various industries. It has a huge network of accredited investors and connects startups with investors who are looking for high-growth potential startups for investment. SeedInvest doesn’t charge a fixed fee as its fee is success-based, and it also offers a subscription model.
#5 Fundable
Fundable is another crowdfunding platform that offers both reward-based and equity-based crowdfunding. Moreover, the platform focuses on Regulation A+ crowdfunding, which allows startups to raise larger-than-usual capital amounts. The best part about this crowdfunding platform is that it offers investors choices. The investors can choose between rewards in exchange for their investment or equity.
#6 CrowdStreet
CrowdStreet is among the best reward-based crowdfunding platforms that mostly entertain real-estate startups. Since its founding, CrowdStreet has funded over 177 startups from 343 investors, amassing a total value of around $4.3 billion in capital investment. Many people invest through crowdStreet as it is a safe platform with very fewer legal implications than stock markets.
Also Read- 7 Rapidly Thriving HealthTech Startups In USA 2024
#7 WeFunder
Wefunder is an equity-based crowdfunding platform mainly catering to early-stage startups with low funding goals. It has a wide pool of non-accredited investors and simpler compliances than Regulation A. However, one caveat is that the investment limit is quite low. This makes it an ideal choice for early-stage startups rather than the ones that have very large investment goals.
#8 Gust
Gust is not a traditional crowdfunding program. It connects startups with potential investors and venture capitalists by listing the startups on its website. Gust lists you on their website, through which you can connect with interested investors who might provide you the capital or the guidance you are looking for. It is very difficult to secure funding here as your funding solely depends on your pitch.
#9 Circle Up
CircleUp is a crowdfunding platform mainly focusing on startups selling consumer products. It helps you connect with leading angel investors and venture capitalists, which can help you secure the funding you want and provide guidance. However, many entrepreneurs have mentioned that securing funding through CircleUp is quite difficult as it has a limited number of investors and venture capitalists. Moreover, the fees it charges are also not available in any public forum.
#10 Patreon
Patreon is regarded as one of the best crowdfunding platforms in the world. Unlike the other platforms mentioned above, this platform is mostly for artists, musicians, and other creative professionals. It offers a monthly subscription model, where creators can earn based on the number of people subscribed to the channel and the price of their subscription.
Don’t Wait!! Fund Your Startup Today
Thanks to the growing trend of startups and entrepreneurship, funding your start-up has never been easier. The crowdfunding platforms we mentioned above are easily accessible and transparent and connect you with the top investors and venture capitalists in the country. In this blog, we have listed the best crowdfunding platforms in general and in specific industries, which will help you get the right funding for the right amount of equity.
Faqs-
Q- What are the 5 types of startups?
A- Small businesses, buyable, scalable, offshoot, and social startups are five of the most prominent types of startups.
Q- What are the 3 Ps of a successful startup?
A- People, process and product are the 3 most important Ps in the startup ecosystem.
Q- How many startups fail?
A- Startup Failure Rate statistics suggest that almost 20% of new businesses in the US seize to exist within two years of launch.
Q- How do startups raise money?
A- Startups can raise money through various means, like crowdfunding, venture capitalism, angel investors, bootstrapping, or loans through banks.
Q- Which startups are the most profitable?
A- According to various statistics, service-based and tech startups are the most profitable startups in the USA.
