Raise Money for your Startup or Fund
Looking to raise money for a business or fund? The below platforms can help you identify a lead investor, handle compliance, and spread the word of your offering. Data, ratings, fees, and reviews to help you select the right platform.
The below platforms cater to both Accredited and non Accredited investors as issuers of Regulation Crowdfunding (Reg CF) offerings.
Platform
Entrepreneur Cost, Monthly Fee
Sort ascending
Non Accredited Investors can Access
SeedInvest
one time fee up to $10,000 in due diligence, escrow, marketing and legal. This is reimbursed when the round is closed. 7.5% of successful round
Yes
Republic
between $6,000 and $12,000 to run a campaign
Yes
Propel(x)
8% success fee for less than 200k raised and 5% if you raise more
No
CrowdfundMainstreet
6.5% or lower
Yes
Fundopolis
6% of which $2,000 up front
Yes
AgFunder
5% transaction fee for first $5million.
No
MrCrowd
5% + services
Yes
StartEngine
5%
Yes
NetCapital
4.9%
Yes
SMBX
3.5% service fee closed round
Yes
Silicon Prairie Online
3-7% of total raise, plus $1000 upfront
Yes
FundersClub
0$
No
FastTrack VC
0
No
OurCrowd
0
No
MicroVentures
$99 application fee, $250 due diligence fee, 5% of what you raise
Yes
CoinList
$20,000 base fee + per investor charges (starting price)
Yes
EquityNet
$199
Yes
Fundable
$179
No
Gust
$125/month entry price
No
AngelList
$0
No
Wefunder
$0
Yes
Fundrise
Yes
CircleUp
No
DealMaker
Yes
Mercury iFunds
No
Title3Funds
Yes
FOLLA CAPITAL
Yes
Issuance
Yes
FlashFunders
Yes
Small Change
Yes
LetsLaunch
Yes
WR Hambrecht + Co
No
Billfolda
Yes
Peer Street
No
Honeycomb
Yes
Wunderfund
Yes
NextSeed
Yes
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Find a Lead Investor
University Research
A team of researchers have identified key elements to reaching a funding goal on equity-based crowdfunding platforms, using empirical evidence from the Australian Small Scale Offerings Board (ASSOB). Gerrit Ahlers, Douglas Cumming, Christina Günther and Denis Schweizer wrote the paper "Signaling in Equity Crowdfunding ," identifying several critical success factors, which include:
The number of board members;
The level of education (measured by MBAs) of the board and management, and their network;
Planned exit, whether it be an IPO, trade sale, leveraged buyout or reverse takeover;
Financial projections, or a disclaimer — a written reason for not stating projections;
Length of time in business;
Personal wealth invested;
Percent of company they are willing to give up or amount of equity offered.
An entrepreneur who successfully raised money on RockThePost, Shahab Kaviani, CEO of CoFoundersLab, shared tips in the Washington Post . Below are his points I feel are most important:
Zero in on who you believe can be the lead investor;
Be willing to travel to investors;
Send updates on committed investments;
Get feedback from investors;
Exude confidence.
"Do you really want dumb money?" Barry Schuler, former CEO of America Online, was quoted posing this question in Forbes . There will be varying levels of commitment and intelligence in all sources of capital, but I argue that crowdfunding democratizes finance and brings together collective wisdom. That said, when considering the crowdfunding route, there are some issues to be aware of:
Reporting burden;
Time spent performing investor relations;
Bad Actor requirements (CrowdCheck offers a tool to ensure you comply )
Future rounds of financing and venture capital models.
This innovation will help business creation and job growth, as well as disrupt financial markets. I hope these suggestions help those looking for resources to raise the necessary capital to build inspirational new companies.