crowdfunding in malaysia

The Best 7 Crowdfunding Platforms

The Best 7 Crowdfunding Platforms introduction
The Best 7 Crowdfunding Platforms

What is crowdfunding ?

Crowdfunding is a way of raising small amounts of money from the crowd.

It is an inexpensive way of raising funds online by engaging a large population through social media to provide assistance for a cause or a project.

Crowdfunding is rapidly growing and changing the processes through which people can raise money for projects.

Individuals, businesses, charities and investors use the crowdfunding platforms to raise funds and there are success stories posted on the various sites. It is an easier way of reaching a larger number of people to contribute towards a project for the purpose of raising funds.

4 different types of crowdfunding platforms

There are different types of crowdfunding platforms from which individuals, businesses and charities can raise funds for a project or cause depending on their various needs.

  • Donation-based crowdfunding is a crowdfunding platform where funds meant for charities and non-profit organizations are raised.
  • Reward-based crowdfunding is kind of similar to donation-based crowdfunding except for the fact that rewards are given to investors for funding the campaign.
  • Equity-based crowdfunding is a platform where a certain percentage of profit is made by the business or venture.
  • Debt-based crowdfunding is the platform where people borrow money.

You can read more here on what is crowdfunding, and here for the short history on how the idea came to be.

Best Crowdfunding Platforms

There are various crowdfunding platforms that can be considered depending on the purpose and the best crowdfunding platforms are stated below:

1. Kickstarter

Kickstarter is a crowdfunding platform that was established in 2009 and about 13.9 million people have pledged more than $3.39 billion over the years. Kickstarter supports various categories of projects such as Art, Comics, crafts, Dance, Design, Fashion, Film and Video, Food, Games, Journalism, Music, photography, publishing, technology and Theater. It is a community which is built on trust and communication.

They make it a rule by ensuring that a plan worth sharing with the world must be created for a project. Kickstarter focuses on projects that are creative and their all-or-nothing model allows you to choose a funding goal while determining the number of days to achieve the goal otherwise, getting the needed funds might prove difficult.

2. Indiegogo

Indiegogo was launched in 2007 and supports the campaigns of innovative projects. It is a crowdfunding platform that helps entrepreneurial ideas become a reality. The Indiegogo crowdfunding platform has created more than 800, 000 innovative ideas since 2008 and relies on projects that are curious in nature which focuses on finding the latest innovations in tech and designs.

Indiegogo encourages a flexible type of funding where there are no fundraising targets or deadlines as you do not need to stop raising funds at any specific time.

3. GoFundMe

GoFundMe is a crowdfunding platform that was established in 2010 and is the most trusted free social fundraising platform for individuals, groups and organizations to raise funds. It is the social platform of Indiegogo and specially designed to help both small and large groups who have a cause or project to raise funds.

It has raised over $4 billion for people who are in need of funds. It provides a platform where individuals and groups collaborate to raise funds together through the provision of social sharing tools coupled with the free platform. It has no platform fee, no deadlines and no goal requirements and has had a positive impact on the lives of people from various walks of life.

4. Patreon

Patreon was established in 2013 and supports the campaigns of various projects such as podcast, video creators, musicians, visual artists, communities, writers, journalists and creators of all kinds.

You start paying once you start earning and a certain percentage is deducted from the income earned as members depending on the membership plan. Patreon is a crowdfunding platform that enables you to generate monthly predictable recurring revenue for projects paid by fans.

There is an exclusive benefit for a peek behind the scenes for fans thereby creating a direct relationship with fans which are free from adverts and algorithm that drives the social media. A standard rate applies as processing fee depending on the membership platform.

5. Crowdrise

Crowdrise was established in 2010 and it is a crowdfunding platform where non-profit organizations raise money with little effort. It will also help to increase event participation and awareness concerning your project or cause.

It is a platform for raising funds using means different methods such as online social fundraising, non-profit event fundraising, peer-to-peer fundraising, nonprofit run, walk and cycle fundraising. Crowdrise has long been the leader in social fundraising before they were acquired in 2017 by GoFundMe.

6. Causes

Causes is a tech company founded in 2007 which provides people with the platform and tools required to bring about a positive change to the world. It is a social platform for people who want to make the world a better place and encourages projects that will have a positive impact on the community.

It is a crowdfunding platform that promotes working together to make a difference faster and more effectively. It helps in building an audience around social, political and cultural issues while members collaborate to provide solutions to today’s toughest problems.

Causes is a profit-making tech company that believes in using technology as the best way to make the world a better place. Individuals, political organizations and non-profit organizations. can start campaigns on causes without any payment.

7. Airfunding

Airfunding is a crowdfunding platform based in Asia where you can raise funds for the purpose of positively having an impact in the lives of individuals or a community. Projects do have their goals, funding limits and amounts collected within the funding limits are given to the project owners irrespective of whether the target was met or not.

There is no platform fee and 8% will be charged on the collected amount with the inclusion of the receipt commission by the bank of the project owner. It has over 10 million supporters on the Global crowdfunding platform which is the international version of Airfunding.

It supports various projects such as Medical, Family, Community, Disaster, Immigration, Education, Art, Business, Study Abroad and Travel and has had so many success stories.


Crowdfunding is a good way to raise money

You can raise funds by using any of the crowdfunding platforms but you need to know the purpose for which the funds are needed before choosing a crowdfunding platform.

The crowdfunding platform will determine the success rate of the projects and how effective was the creation of awareness about the project to the crowd. So choose appropriately.

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