Behind many small businesses is an angel venture capitalist (VC) or investor who has faith in an owner's business model and financial goals. When running or launching a small business, you needn't rely primarily on dwindling SBA loans or lines of credit from your bank or credit union. Nor do you need to max out your credit or debit card. If you've never tried a fundraising website, this is the right time to do it. State and federal grants for small businesses, including those involved in scientific research and technology development, are becoming scarcer. The funding solution for more entrepreneurs is a crowdfunding source.
GoGetFunding
GoGetFunding is an online funding source to go to for a small business jump start and ongoing team fundraising support. Launched in 2011 and located in the United Kingdom, GoGetFunding services fundraisers in the United States, United Kingdom, Canada, Australia, New Zealand and other countries. To start a campaign is free, however, processing fees average 2.9 percent and 4 percent on the monies raised is charged. Businesses get a personal fundraising coach, have ongoing access to funds, and are not penalized for not reaching preset goals. This crowdfunding site is very navigable and accessible on mobile devices. Like GoFundMe, GoGetFunding allows fundraising for anything, from charitable drives to tech ventures.
GoFundMe
Noteworthy and the most trusted crowdfunding website, GoFundMe has a surprisingly robust platform for small businesses. Business owners can raise money to cover business expenses as well as launch startups. GoFundMe is also mom-and-pop business friendly. It's good for small businesses often overlooked by equity investors, such as neighborhood restaurants, bakeries and bookstores. The crowdfunding site also helps small businesses that closed their doors to re-open for business. Funds come from everyday people. Expert advice is available 24/7. The site has a 2.9 percent payment processing fee with an additional 30 cents per donation. GoFundMe is accessible through mobile devices.
FundRazr
A Canadian-based crowdfunding site, FundRazr got its start on Facebook. Its fundamentals are similar to those of GoGetFunding and GoFundMe. You can launch a FundRazr campaign for free, share your campaign across social networks and access your funds when needed. This is another site where small businesses and startups at any stage can raise money. There are two funding models: Keep It All and All or Nothing. If you choose Keep It All, there are no goals or fundraising deadlines, you keep the monies raised, and you can access your funds right away. However, even the most generous sites require service fees to keep operating. Fund recipients pay a service fee ranging from 5 percent to 7 percent, a payment provider fee of 2.9 percent and 30 cents per transaction. U.S. and Canadian site users must have PayPal, WePay or both accounts to receive payments. "Guest Payments" must be enabled in PayPal for receiving funds from contributors who don't have a PayPal account.
Fundable
Fundable can be defined as a business crowdfunding broker, as well as a crowdfunding site. It was created by the founders of startup companies who pooled their collective knowledge and fundraising experience to create a business crowdfunding platform. The Fundable team helps companies navigate the fundraising process through an active marketing approach. After creating a profile for your company, Fundable works with investors and funding sources to help businesses get appropriate financing. Money can also come from customers and friends. Investors and donors are referred to as backers.
Startups.co
Created for startups, Startups.co helps customers find customers, mentors and funding. Startups.co also provides ongoing education to registered startup founders and their teams. The site's platform is a family of six business resources, which includes crowdfunder broker Fundable. Startups.co and Fundable are best suited for small businesses with proven or demonstrated potential for growth.
This article was written by Linda Cameron for Small Business Pulse