Crowdfunding sites FAQ
What are the advantages of crowdfunding?
Do you pay back crowdfunding?
- If you are using donation crowdfunding (i.e., GoFundMe) you don’t have to pay the money back.
- If you are raising money with exchange crowdfunding, where you ask for money and give something in return, you must fulfill your obligation.
- If you raise money through equity crowdfunding, you don’t need to pay any money back, but must share revenue with investors.
Which crowdfunding sites are the best?
What’s the difference between Kickstarter and Indiegogo?
Get the money your business needs
Crowdfunding can offer entrepreneurs a way to raise the money needed to start a business, speed up the product development process, or fund their growth with access to a network of potential investors and customers.
In fact, many Shopify merchants saw their business take off thanks to the money they raised through crowdfunding sites like the ones above.
But it still takes a little bit of luck and a lot of preparation for you to realize your fundraising goals. You need to convince people that your idea is worth backing, after all, so pitch your campaign the right way to the right people.
If you’re looking for a traditional business loan, check out How to Get a Small Business Loan and What to Know Before Applying.