In 2016, just over 6% of job seekers in the US decided to start their own business.
More entrepreneurs leaped into entrepreneurship that year than they have since 2009. But starting your business can be tough - especially when it comes to finding funding.
Whether you're considering starting your own business or you've already gotten started, equity crowdfunding is now an option for financing your business. And if you're unsure where to start, you may want to take a look at the top crowdfunding sites out there.
Keep reading to learn more about the top 8 equity crowdfunding sites and how they can help you.
8 Top Crowdfunding Sites for Equity Crowdfunding
Equity crowdfunding sites are similar to traditional crowdfunding platforms you've likely heard of (aka Kickstarter or GoFundMe). There's one key difference though: an equity crowdfunding sites are for entrepreneurs looking for ways to finance their startup. It involves an investment arrangement wherein the new company issues equity to the investors on a proportional basis.
There are several equity crowdfunding sites out there, but we've gathered the top 8. Learn more about each of these below.
Fundable is a bit different than the other sites we've listed here in that they do. They offer both equity crowdfunding as well as reward crowdfunding campaigns similar to Kickstarter. They're best for companies that need to raise substantial sums of capital, and they allow you to choose your campaign and a subscription package.
While WeFunder tends to favor food and tech companies, they're technically open to all types of businesses. They're also the biggest platform using the Title III equity crowdfunding.
Another equity crowdfunding site using Title III or Regulation Crowdfunding, they fund everything from clothing retailers to health care ventures. StartEngine offers their services to anybody, and they do it for as low as $100 depending on your business.
Focusing on high-impact ventures, Crowdfunder came out of LA back in 2012. Setup your profile for free and submit the Term Sheet, the Executive Summary, and the Investor Pitch Deck to get your campaign started. You'll have access to over 12,000 individuals and institutional investors on a site that currently houses $160,000,000 in investment commitments.
SeedInvest isn't for everyone - mainly because they've only approved about 1% of the companies that apply. They're a pretty exclusive option that focuses mostly on tech companies. So make sure you've got a strong investment pitch and business growth plan before taking the time to apply with them.
If your startup is considered more of a creative work or community project, then Indiegogo might be the equity crowdfunding site for you. But they also have options for business ventures that allow you to raise money from individual sponsors that are right for you.
AngelList is an equity crowdfunding site that also offers a job board for people looking to get work with startups. Plus, they're free to use for both sides of the coin.
Just remember that because they're free of charge, a lot of people flock to them. Meaning you'll have to find ways to make yourself stand out.
Part of a family of startup platforms that includes AngelList, Republic gives you access to investors from your community, a pool of potential customers, and retail investors that number in the millions. But the platform goes well beyond what most equity crowdfunding sites do - they also offer advice and support that's invaluable to a new business.
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Access to capital can make or break a startup. With these top crowdfunding sites, you have access to individuals and other sponsors that you otherwise wouldn't. And with all different types to choose from, you can find an investment arrangement that works best for you.
Starting your own company isn't easy, which is why we're here to help. Check out our entrepreneur blog for more tips and advice.