Comparison between the best Crowdfunding platforms – Kickstarter vs. GoFundMe vs. Indiegogo
The earlier stages of crowdfunding- donation and rewards-based fundraising paved the way to the emergence of online equity crowdfunding in the year 2012. Since then several crowdfunding businesses sprouted- starting an inevitable revolution that inspires new ideas and ideators to contribute to the welfare of the world. Today, the projected total crowdfunding amount raised by the year 2025 is $300 billion USD. Massive possibilities are rushing in and now is considered the best time to try your luck. And this why we share our insights on what sets reputed crowdfunding businesses like Kickstarter, GoFundMe and Indiegogo apart from each other.
Comparative Analysis: Kickstarter vs. GoFundMe vs. Indiegogo
Even though Kickstarter, GoFundMe and Indiegogo belong to the same business dimension, the way each operates differs as their business models are entirely different. Here consider a few common aspects of these businesses to best conclude the comparison study.
Kickstarter– Kickstarter fundamentally focuses on creative projects like art, music, movies, etc. Ideators can create the campaign and narrate their ideas to invite funding. A goal should be defined, and funds will only be released if the goal is met. Read about the Brief Overview of Kickstarter’s Business and Revenue Model here.
GoFundMe– Unlike Kickstarter, GoFundMe deals with personal causes and needs related to individuals. Also, it doesn’t promote the all or nothing concept, the ideator or beneficiary gets the funds even if the goal is not reached. Read about the Brief Overview of GoFundMe’s Business and Revenue Model here
Indiegogo– A platform that offers massive possibilities, it supports a wide array of projects. It can be technology-centred or any other innovative ideas. It works similar to Kickstarter, for no funds will be released unless the goal is met.
Plans and Pricing
As discussed above Kickstarter follows an all or nothing strategy, where the ideator has to set a particular goal and a deadline to achieve the same. However, no funds raised will be released unless the goal is met. Moreover, there is no need to pay anything like a platform fee/commission if the campaign is unsuccessful. Anyhow, The site boasts higher pledges to date than every other major crowdfunding platform combined. And merely 65% of projects on Kickstarter get fully funded within the campaign timeline.
GoFundMe is very welcoming when it comes to personal causes and individual needs. For instance, education, setting up a team or any medical treatments can be the reasons. Besides, GoFundMe doesn’t follow all or nothing strategy; for ideators can take whatever funds are raised so far. Fees are the same whether you get fully or partially funded. Unlike many other crowdfunding platforms, GoFundMe has no community attached. However, because the campaigns are easily sharable, this will make up for the lack of community.
Indiegogo stands for those who have ideas that don’t fit into the specific categories that other crowdfunding sites cater to. However, the chances to get funds is likely low without the high traffic and brand recognition of a big name platform.
Remember, all of these three crowdfunding platforms allow you to get funds without taking on debt or giving up equity. It also helps you estimate the market interest. Anyway, it is mandatory that you must pay taxes for any amount raised from these crowdfunding platforms.
What do Customers Say?
When I see Kickstarter, I don’t see a company. Instead, I see a social movement. I see people doing things for people- Om Malik
I wanted to set up a fund for a person I had never met, from a news story to a campaign in literally minutes. It was very easy to go through each step and explained very well what you have to do at each step. If you have any questions their online help got back to me right away. The fund was rather large over $30,000.00 and with the help of social media and GoFundMe, it was achieved in just over 5 months. They do get a very small portion of the donations to keep their site up and running, I believe it was under $1200.00 for over $30K which is very reasonable – John Deremo
Indiegogo can work well if you aggressively solicit your friends and social network for money.
Why Partner with Agriya?
Crowdfunding implies one of the mushrooming business concepts among millennial businesses. Apart from huge possibilities it offers to the ideators, it also serves great fortune for those who are willing to step into crowdfunding business. However, to kickstart a crowdfunding business in this digital era demands a comprehensive online platform, which is easy if only you have access to all required resources.
Agriya – a known contender in the present software arena has an impeccable track record of deploying niche-specific ready-made solutions that eliminate the need for a full-stretch development process. The crowdfunding solution from our premium product line isn’t an exception as well. Business or individuals who seek a full-fledged online fundraising platform can easily employ the script and transform the same into a matured platform.
EXplore Agriya website to know more.