Best Crowdfunding for Startups 2023: How to Fund Your Small Business

Read our primer for finding the right platform to kick your startup into a business.

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So you’ve decided to start a business. Your startup idea has brilliant potential, and you’re ready to rake in those millions. But hold on—startups are expensive, and where will you get the cash to fund it? Unless you know some deep-pocketed angel investors or venture capitalists, it’s time to appeal to the masses!

Crowdfunding sites connect your startup to willing investors and fund contributors—and we found the very best fundraising sites for businesses.

Ready to start crowdfunding?

Featured partner offers
Best overall
BlueVine
Bluevine
  • pro
    Interest-bearing checking accounts only
  • pro
    $0.00 minimum opening deposit
Best for solopreneurs
Lili
Lili
  • pro
    Checking and high-yield savings accounts
  • pro
    $0.00 minimum opening deposit
Best integrations
Novo
Novo
  • pro
    Apps integration and discounts for other products
  • pro
    No-fee online checking

Compare the best crowdfunding sites for business

Site
Campaign type
Campaign/funding fees
Payment processing fees
Get started

Reward

5% of the total funds raised

3% + $0.20 per pledge of $10.00+; 5% + $0.05 per pledge under $10.00

Reward

5% of the total funds raised

2.9% + $0.30 per transaction

Reward, donation

N/A

2.9% + $0.30 per transaction

Equity7.5%N/A

Reward, equity

$179.00/mo. subscription

3.5% + $0.30 per transaction

Data effective 10/17/22. Offers and availability may vary by location and are subject to change.
*Fees listed for US-based campaigns.

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Choosing the right kind of crowdfunding

Crowdfunding portals that are built like social media sites connect you to investors and other folks willing to help small-business owners get products and services into the market.

But not all crowdfunding sites are alike. There are two main types of crowdfunding for business:

  • Rewards crowdfunding: You create a campaign for your startup, and then individual contributors donate funds—usually in small amounts—to your campaign in exchange for a reward. The reward could be a preordered purchase of your product, a shout-out on a website, or even a T-shirt. 
  • Equity crowdfunding: Equity crowdfunding is popular for startups because the platform connects you to investors who are willing to make larger donations in exchange for a stake in your business. That may mean treating your contributors like minority shareholders—with all the associated reporting duties. 

Most crowdfunding platforms focus on one of these types, but some offer both. And some crowdfunding sites allow you to keep whatever funds you raise, while others let you keep the funds only if your campaign is entirely successful (commonly called “all-or-nothing campaigns”). 

Some sites offer other types of crowdfunding that don’t fall neatly into the reward or equity categories. For example, many GoFundMe campaigns function more like charitable contributions. And Patreon can be used to create a steady source of income for creators like artists and writers.The right type of crowdfunding campaign for your startup depends on your size, your goals, and the amount of capital you need to get started. 

If you need significant amounts of cash, equity-based campaigns that offer crowdfunding investments are often the better choice. On the other hand, if you think you’ll be better served by pooling thousands of small donations, reward-based crowdfunding may be best.

More about How to Crowdfund Your New Business.

On a similar note...

Find the best business bank

See Business.org's top picks for the best small business banks of 2023.


Dive deeper into funding:

Kickstarter: Best overall crowdfunding site

Kickstarter
Kickstarter
  • 5% platform fee (successful campaigns only)
  • pro
    Reward campaigns
  • pro
    All-or-nothing funding
  • pro
    For startups in the US, UK, Canada, Australia, New Zealand, and the Netherlands
  • pro
    Payment fees: 3% + $0.20 per pledge; 5% + $0.05 per pledge under $10.00

Data effective 10/17/22. Offers and availability may vary by location and are subject to change.
*Fees listed for US-based campaigns.

Kickstarter campaigns have been around for nearly a decade, and the site is probably the most well-known of any crowdfunding platform—and for good reason!

But first, the bad news: completing a successful crowdfunding campaign on Kickstarter is tough. It’s a highly competitive platform that carefully selects the crowdfunding projects allowed on the site. And you can’t fund just any business on Kickstarter; you must “create something to share with others.” Your project also needs to fall under one of Kickstarter’s curated categories, like arts and crafts, fashion and design, film and photography, games, and technology.

Still, with a base of over 6 billion project backers across the globe, Kickstarter’s worth a shot if you want to get your big idea in front of the largest audience possible.

Strengths
pro Campaigns accepted from 6 countries
pro More than 20 million campaign funders worldwide2
pro 3% payment fees
Weaknesses
con Tricky campaign acceptance process
con One-in-three campaign success rate2
con All-or-nothing funding
Icon Quote  Dark
“Applying on a Kickstarter is a really easy process. Once you set up your campaign, you submit it for approval on Kickstarter. Once approved, you launch your campaign for a limited period of time (usually 30 days) and promote the hell out of it to reach your goal.

If you reach your goal, Kickstarter sends you the funding within a few days to a couple weeks after they take their cut of your funding which is 5% of funding raised.”
Business dot org staff writer avatar
Cody Smith
Akimbo Games

iFundWomen: Best for women entrepreneurs

iFundWomen
iFundWomen
  • 5% platform fee
  • pro
    Reward campaigns
  • pro
    Keep-what-you-raise funding
  • pro
    For startups in the US and 22 other countries
  • pro
    Payment fees: 2.9% + $0.30 per pledge

Data effective 10/17/22. Offers and availability may vary by location and are subject to change.
*Fees listed for US-based campaigns.

The name iFundWomen should give you an idea of this crowdfunding site’s focus (though men can also raise money on the platform). The founders created the online crowdfunding platform as a “fundraising ecosystem for women-led startups and small businesses.” It also provides coaching, marketing, and other services for startup owners.

iFundWomen offers free training in the “iFundWomen Method” of crowdfunding. According to the platform, businesses that use this method raise more money than average―like 27 times more.3 That makes iFundWomen’s mentoring pretty valuable.

Unlike some reward-based crowdfunding sites, iFundWomen lets campaigners keep whatever funds they raise. And out of the money the site earns from funding fees, 20% goes back into supporting campaigns and services for women business owners.

Strengths
pro Flexible keep-what-you-raise funding model
pro Commitment to reinvesting into the women-owned business community
pro Extra services like startup coaching, video production, and private forums
Weaknesses
con Access limited to campaigners in only 23 countries
con Limited information on success rate and customer experience
Icon Quote  Dark
“I’m utilizing iFundWomen, and if you haven’t heard of them yet, you will. They are a platform for female entrepreneurs, and they offer full coaching to help launch crowdfunding campaigns and an incredible network of their female business owners on Slack. I not only received invaluable advice along the way about how to maximize a crowdfunding campaign for success, but also a tribe of fellow ambitious women who were on the same journey. They also pay it forward by investing 20% of their profits back into selected active campaigns (for which mine was selected this month!).”
Business dot org staff writer avatar
Sara Axelbaum

GoFundMe: Best for charitable causes

gofundme
GoFundMe
  • 0% platform fee
  • pro
    Donation campaigns
  • pro
    Keep-what-you-raise funding
  • pro
    For startups in the US and 19 other countries
  • pro
    Payment fees: 2.9% + $0.30 per pledge

Data effective 10/17/22. Offers and availability may vary by location and are subject to change.
*Fees listed for US-based campaigns.

GoFundMe is an internationally recognized crowdfunding platform for helping people worldwide put their money toward charities and causes that matter to them.

Although GoFundMe isn’t the right crowdfunding site for every type of startup, if you’re in the business of helping people—or animals—who need assistance due to medical conditions, emergencies, or other disadvantages, it’s worth considering.

The most significant upsides to GoFundMe include zero-funding fees for personal causes based in the US and the ability to keep all funds you can raise. Just be wary that due to the massive scale of the site, GoFundMe campaigns have a reportedly low success rate, so you’ll need to work extra hard to get people to see—and invest in—your project.

Strengths
pro Focus on people-based charitable causes
pro Zero funding fees for US-based personal causes
pro Keep-what-you-raise funding model
Weaknesses
con Minimal options for traditional startups
con One-in-ten success rate for fully funding campaigns4

Wefunder: Best for equity crowdfunding

Logo for Wefunder
Wefunder
  • 7.5% platform fee
  • pro
    Equity & debt campaigns
  • pro
    All-or-nothing funding
  • pro
    For startups in the US only
  • pro
    Payment fees: N/A

Data effective 10/17/22. Offers and availability may vary by location and are subject to change.
*Fees listed for US-based campaigns.

Wefunder isn’t the only equity crowdfunding platform out there (in fact, we include several others on this list), but it’s our favorite.

In part, that’s because Wefunder has an excellent success rate (around 75%), even though it’s not super exclusive. It’s also because Wefunder offers lots of resources and help for startups that use it to crowdfund, including mentorship, help with legal documents, and even investor relations support.

Bullhorn
Legal requirements
Equity crowdfunding with accredited investors has more legal requirements than other types of crowdfunding. Equity crowdfunding sites should help you navigate many of those requirements, but you may want to check with your state to make sure there are no additional state-level requirements you need to know.

Now, Wefunder works best for startups that see venture capitalists funding their projects in the future. It’s not for small businesses that plan to stay small. And because it deals with equity crowdfunding, Wefunder has way more rules and regulations than many other crowdfunding platforms. But if none of that bothers you, Wefunder’s equity-based platform can provide a great way to fund your startup.

Strengths
pro High success rate for campaigns
pro Lack of exclusivity
pro Resources for startups
Weaknesses
con Lots of legal rules and requirements
con Required financial disclosures

Fundable: Best flat fee option

Fundable
Fundable
  • 5% platform fee (successful campaigns only)
  • pro
    Equity & rewards campaigns
  • pro
    All-or-nothing funding (for rewards) & keep-what-you raise (for equity)
  • pro
    For startups in the US only
  • pro
    Payment fees: 3.5% + $0.30 per pledge

Data effective 10/17/22. Offers and availability may vary by location and are subject to change.
*Fees listed for US-based campaigns.

Most crowdfunding platforms, whether they are equity or reward-based, take a percentage of the funds you raise. Fundable, however, takes a different approach. It charges a flat monthly subscription. As long as you’re subscribed, you can create campaigns to raise money (though Fundable will have to manually approve your campaign after verifying it meets its terms and conditions).

Fundable’s flat fee makes it a great deal for many successful crowdfunding campaigns. For instance, if you set a goal of just $3,580, that fee comes to about 5% of what you raise (comparable to other platforms). However, if you make it to $10,000, the fee is less than 2%.

The only problem? You pay the fee whether you’re successful or not.  (If you do an equity campaign, you at least get to keep whatever you raised.) A failed campaign will lose you money, so Fundable is best for startups with a lot of confidence in their ideas and want to run an equity campaign.

And if you’d like a little extra help with your campaign, Fundable offers consulting services. It will do everything from design assets to market your campaign. These consulting services do cost more than Fundable’s monthly fee, but you’ll have to contact Fundable to get the exact cost for your startup.

Strengths
pro Low, flat monthly fee for fundraising
pro Excellent customer service
pro Consulting to help startups create great campaigns
Weaknesses
con Flat fee that penalizes unsuccessful fundraisers
con No automated unsubscribe options

Honorable mentions

Compare honorable mention crowdfunding sites

Site
Campaign type
Campaign/funding fees
Payment processing fees
Get started

Reward, subscription

5%–12% of successfully processed payments

2.9% + $0.30 per transaction over $3; 5% + $0.10 per transaction $3.00 or less

Reward, equity

5% of all funds raised

2.9% + $0.30 per transaction

Reward, equity

6% of the total cash funds + 2% Crowd SAFE security

2.5% per transaction

Equity

7.5% of the total amount raised in a successful round

$0 for business; 2% paid by the investor

Debt

N/A

N/A

Data effective 10/17/22. Offers and availability may vary by location and are subject to change.
*Fees listed for US-based campaigns.

Patreon

Patreon
Patreon
  • 5–12% platform fee
  • pro
    Reward & donation subscription campaigns
  • pro
    Keep-what-you-raise funding
  • pro
    For startups worldwide
  • pro
    Payment fees: 2.9% + $0.30 per pledge over $3.00; 5% + $0.10 per pledge $3.00 or less

Data effective 10/17/22. Offers and availability may vary by location and are subject to change.
*Fees listed for US-based campaigns.

Patreon may not be the best solution for launching a technology startup with high capital needs, but it’s an excellent way for creators to build an audience and a source of income.

Anyone in the world (at least 13 years old) can set up a Patreon campaign. And the platform is excellent for helping you fund creative projects like video and photography, music, writing, comics, podcasts, games, animation, and more.

You’re probably not going to earn colossal investments with Patreon, but you can keep all your donations (minus a 5% payment fee) and leave your campaign running indefinitely.

Indiegogo

Indiegogo
Indiegogo
  • 5% platform fee
  • pro
    Reward & equity campaigns
  • pro
    Keep-what-you-raise & all-or-nothing funding
  • pro
    For startups worldwide
  • pro
    Payment fees: 2.9% + $0.30 per pledge

Data effective 10/17/22. Offers and availability may vary by location and are subject to change.
*Fees listed for US-based campaigns.

Next to Kickstarter, Indiegogo may be the best-known crowdfunding site in the world.

Initially founded to help fund projects like theater and cancer treatment, Indiegogo is now an international platform with over 9 million backers, that accepts campaigns in various industries, from consumer technology to community improvement.5

Most Indiegogo campaigns are reward-based with all-or-nothing funding rules. But there are options for equity investment and keep-what-you-raise campaigns too.

The downsides: Indiegogo’s success rate is measly, with reports in the 8% to 10% range. And according to some reviews, the experience for some startups has been less than favorable, partly due to the high fees for partially funded campaigns.

Republic

Republic Logo
Republic
  • 6% platform fee + 2% Crowd SAFE fee
  • pro
    Reward & equity campaigns
  • pro
    All-or-nothing funding
  • pro
    For startups in the US only
  • pro
    Payment fees: N/A

Data effective 10/17/22. Offers and availability may vary by location and are subject to change.
*Fees listed for US-based campaigns.

As an equity-focused crowd-investing platform, Republic is the new kid on the block. And with a highly curated selection of companies, it’s not for everyone.

But for growing US companies with enormous revenue potential, Republic’s 95% success rate for selected campaigns makes it one of the most enticing platforms for connecting with willing investors.

Republic also focuses on diversity and looks for organizations with diverse teams.

If you’d like more information on Republic, you may want to check out our Republic Equity crowdfunding review 2022.

SeedInvest

Seed Invest
SeedInvest
  • 7.5% platform fee + 5% equity fee
  • pro
    Equity campaigns
  • pro
    All-or-nothing funding
  • pro
    For startups in the US only
  • pro
    Payment fees: 2% (paid by investors)

Data effective 10/17/22. Offers and availability may vary by location and are subject to change.
*Fees listed for US-based campaigns.

Founded by MBA graduates and experienced investors, SeedInvest started as a way to give technology startups access to capital from people willing to make sizable equity investments.

The platform allows only US-based businesses and employs a picky selection process. To start, you need at least a minimum viable product or prototype, proof of concept, and two or more team members. If you make the cut, you’ll get access to both accredited and non-accredited investors for campaigns starting at $100,000.

SeedInvest’s biggest drawback is its expensive 7.5% placement fee on all successfully funded campaigns. Still, the site has a growing base of investors and successful companies, as well as a positive reputation.

Kiva

Kiva
Kiva
  • 0% platform fee
  • pro
    Debt campaigns
  • pro
    All-or-nothing funding
  • pro
    For startups in the US only
  • pro
    Payment fees: N/A

Data effective 10/17/22. Offers and availability may vary by location and are subject to change.
*Fees listed for US-based campaigns.

When it comes to debt crowdfunding, nonprofit Kiva just might be your most affordable option. Successfully funded Kiva campaigns give your startup a loan—not just any loan—but one with 0% interest.

So while you’ll have to pay back your Kiva loan, there are no funding fees or payment fees to worry about. Instead, you can focus on building a successful campaign. And since Kiva requires you to prove your social capital by kicking off your campaign with donations from family and friends, that means convincing people you know to fund your business.

Note that Kiva loans top out at $15,000. So if you need big bucks, Kiva’s not right for you. But if you want affordable debt crowdfunding for your small fundraising goals, Kiva’s worth looking into.

Why crowdfunding is good for startups

First of all, crowdfunding is one of the few ways a startup with no track record and no credit can get funded. When you apply for funding through lenders, they look at all sorts of things to decide whether or not you qualify. But with crowdfunding, the persuasiveness of your pitch is what matters—not your credit profile.

Crowdfunding can also help you streamline the process of taking a proof of concept to prospective investors to see if there’s a chance for success. And in some cases, with equity crowdfunding for startups, the investors may help you flesh out your business if your idea isn’t viable on the market.

By getting capital up front, product-centric businesses and capital-heavy projects can launch with rocket speed. Of course, not every crowdfunded campaign results in millions of dollars, but there are plenty of crowdfunding success stories that earn $100,000 or more in just a few months—that’s not chump change.

Plus, your business will benefit from the credibility boost that crowdfunding sites can provide. And you’ll have an eager pool of interested customers willing to pay once your project launches.

Bullhorn
Crowdfunding vs. peer-to-peer lending

Peer-to-peer (P2P) lending is another way to fund your business through private investors. In P2P lending, individuals and groups extend business loans to businesses to earn money via interest on the loan. Unlike crowdfunding, P2P lending generally has a formal application process with a quick funding turnaround.


Avant: Our top pick for
brand-new businesses

Avant’s secure personal loan options and next-day funding make it our top pick for brand new businesses not yet qualified for business loans.

Qualifications:

Calendar Approach

No min. time in biz

Money Approach

No min. revenue

Analysis Approach

550+ credit score


The takeaway

If you’re trying to raise money for your startup, the crowdfunding sites above might be just the way to do it. Many business owners can attest that there are plenty of people ready to invest in startups through crowdfunding.

And with our ranking, you can find the right platform for your business—whether that means rewards crowdfunding, equity crowdfunding, or something else entirely.

The crowdfunding industry has funded many small businesses. Why not yours?

Not sure crowdfunding is right for you? Learn how to get a startup business loan instead.

Related content

Crowdfunding for startups FAQ

It’s hard to say what the most successful crowdfunding site is. In part, that’s because people define success differently. Is it the percentage of successful campaigns? The amount of money raised?

Plus, it’s hard to get good data. Most comparisons we found were using data from five years ago—which means they often include platforms that have since closed. And, you know, crowdfunding platforms don’t exactly brag about low success rates.

So rather than looking for the most successful crowdfunding site, we suggest you focus on finding the platform that best fits your needs (and we hope our rankings of the best crowdfunding sites help).

Failed projects can risk damaging your reputation, lead to someone stealing your idea (if you haven't copyrighted or patented it), and disappoint the people who have pledged money to you. 

Luckily there are  many good alternatives for you. There are other small-business funding options, like loans and lines of credit, are tried-and-true (and often less risky) sources of fuel for startup funding.

If you’re interested in a loan or line of credit for your startup, we recommend Lendio. Lendio is a loan marketplace with a quick and easy application process and personalized options for startups.

For more recommendations, check out our ranking of the best small-business loans for startups.

What are the odds of getting funded through crowdfunding?

Your chances of successfully crowdfunding depend on a bunch of factors, from the platform you use to your own business strategy. That being said, the stats show that less than one-third of crowdfunding campaigns are successful.5

That might sound discouraging, but remember that you can increase your chances by having a good plan, choosing the right platform, and creating a solid campaign.

Methodology

To determine our list of the best crowdfunding sites, here are some of the factors we considered:

  • The campaign types (reward, equity) and business locations allowed on the site
  • The funding and payment processing fees the site charges startups
  • Whether the startup can keep all funds raised (as opposed to an all-or-nothing model)
  • The size and public reputation of the site (via CrowdsUnite)
  • The site’s campaign success rate (if available)

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Sources

  1. Entrepreneur, “The Basics of Crowdfunding.” Accessed December 5, 2023.
  2. Kickstarter, “Stats.” Accessed December 5, 2022.
  3. The Outline, “The People GoFundMe Leaves Behind.” June 23, 2017. Accessed December 5, 2022.
  4. Indiegogo, “Our Story.” Accessed December 5, 2022.
  5. Entrepreneur, “Less Than a Third of Crowdfunding Campaigns Reach Their Goals.” January 18, 2016. Accessed December 5, 2022.
Sarah Ryther Francom
Written by
Sarah Ryther Francom
Sarah is Business.org’s senior content editor. She has more than 15 years of experience writing, editing, and managing business-focused content. As the former editor-in-chief of Utah Business magazine, Sarah oversaw the state’s premier business publication, developed several custom publications, and managed all business-to-business content. She also co-authored a business book with FJ Management CEO Crystal Maggelet. Sarah is passionate about helping small-business owners reach sustained success.
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