8 Benefits of Crowdfunding in Canada Plus the 10 Best Crowdfunding Sites
If you're a young, innovative entrepreneur in Canada hoping to turn your idea into a reality, you no doubt realize there are plenty of noteworthy funding options out there.
On one hand, you have pitching investors on Dragons' Den and hoping they bite. On the other hand, you can turn to the most popular platforms for crowdfunding in Canada.
Canadian Crowdfunding - 8 Benefits
Here are several features you can benefit from as a Canadian entrepreneur by using crowdfunding.
1. Free Signup and Start
Virtually all crowdfunding platforms used by Canadian startups are free to sign up to and start a crowdfunding campaign.
2. Find Investors Worldwide
You can find investors from all over the world on these crowdfunding platforms, even in areas where you may not have access to money otherwise.
3. Alternative Funding Source
Crowdfunding is used for more than just personal projects! It also helps entrepreneurs who want to launch their businesses but can't get funding from traditional sources or banks.
4. Funding Opportunity for All
The best part about crowdfunding is that it gives people from all walks of life an opportunity for success and independence if they are willing to put in the work!
5. Most Popular Startup Funding Source
The most popular forms of funding for startups nowadays are crowdfunding platforms where entrepreneurs can raise money for their businesses by either pre-selling products or offering rewards to early adopters who donate their time or money towards a good cause.
With so many options out there, you must do your research into each one and make the best decision for your company.
6. Spread the Financial Burden
The most notable benefit of using crowdsourcing in Canada is that it allows for small groups of people to share the burden of funding ideas with larger groups. This means as little as 50 people can fund a project, and the size of your team doesn't matter.
7. Backer Guarantees
Another advantage is that all pledges are legally binding contracts. Not only does this give backers peace of mind, but it also reassures them that their money will not be wasted if the project doesn't work out.
8. Inexpensive with Complete Control
Crowdfunding websites are an inexpensive way to help you achieve your goal, and they let you keep complete control over your campaign without having to share any profits with investors or venture capitalists. The crowdfunding website is a free platform that allows entrepreneurs to start their own fundraising campaigns without any investments.
Top 10 Canadian Crowdsourcing Choices
Below are some of the most popular crowdfunding sites used by Canadians that are currently up and running on the internet. Each one of these platforms has its own unique features. It's definitely worth checking them out to find out what you like best.
Crowdfunder is the world's first equity crowdfunding platform for startups. It enables entrepreneurs to raise funds from accredited investors which, in turn, helps them avoid the costly and time-consuming process of running a traditional securities offering.
Launched in 2011, Crowdfunder is a great platform for those who need a serious amount of cash to start their company.
Each campaign is monitored and managed by an expert team that keeps each site running smoothly.
You can easily post your campaign in any part of the world, and it will be available to be viewed anywhere.
With every single post, you have the ability to track how many people are visiting your project page and reading about it.
Watch the video to discover how to use Crowdfunder to your advantage:
Kickstarter is one of the most popular crowdfunding websites in Canada. It requires each user to create a profile that is then reviewed by Kickstarter staff. This process ensures only the best projects are posted on Kickstarter, giving it a high level of credibility.
Once you have your profile approved by Kickstarter, you can start posting your project. You can choose from any category from technology, art, design to food and conservation to name a few.
If your project does not make its goal amount within your allocated time then all pledges are refunded back to the backers. Kickstarter is a great place if you're looking to make your project more personalised and special than the rest. It also offers free shipping on many items and rewards, so it's worth checking out.
It is also is a great option if you're looking for a platform with certain perks. This website actually allows you to keep your project in the privacy of your own home, while still keeping it alive and accessible for all of your supporters and potential investors.
But to protect the integrity of their site, Kickstarter won't allow you to keep your project private until it's been fully funded.
For more information about crowdfunding through Kickstarter, check out the video below:
IndieGoGo is a great option if you're looking to raise money for a specific project or charity.
One of the most well-known uses of IndieGoGo is the Rock for Kids Foundation, which was created to provide music education to young students in need.
You can also use IndieGoGo as a way to raise money for your startup idea, and the success rate is pretty high. The fees are very affordable, too, which is great if you want to keep your costs low while raising the cash necessary for your startup idea.
Also, IndieGoGo is a great platform to use if you need more personalised products, and it offers free shipping on many items.
IndieGoGo has a lot of perks that make this site great for startups, including pre-sales on new products or assets; early access to an account; invitations to important events such as networking opportunities, pitch competitions, workshops; publishing deals and distribution partnerships; plus much more!
Here’s a video to get a deeper explanation of how IndieGoGo works:
Since no bigger crowdfunding website exists, the main market for GoFundMe is crowdfunding.
You can find a few projects that are not focusing on the personalization of their campaign but rather raising money for a charity or an idea. This may not be your best option if you're specifically looking for an audience-focused platform to use, but it's still worth checking out as there might be something on this site that suits your needs.
GoFundMe is one of those sites that provides a platform for any type of niche or cause. One of the great things about this site is that it's very easy to use, and there are plenty of examples from other campaigns on how you can do so as well.
To learn more, watch this video:
Patreon is another well-known platform where people can connect with their backers and create means of supporting them in return through monthly pledges or one-off donations.
To protect the integrity of their site, Patreon won't allow you to keep your project private until it's been fully funded.
For more information about crowdfunding through Patreon, check out the video below:
Each one of Fundable's equity-based fundraising platforms exchanges shares for money. So in essence, it's a crowdfunding platform for startups and small businesses that's all about selling stock.
Fundable also works with both accredited investors and non-accredited investors, which is great if you're looking to raise the money you need to grow your business.
Fundable is ideal for startups that are trying to raise $100,000 or more.
All of Fundable's platforms are free for startups to create and use.
For more information about crowdfunding through Fundable, check out the video below:
CrowdCube is an equity crowdfunding site. It allows investors to invest in and support start-ups and small businesses that typically lack access to funding from traditional institutional investors, or banks.
Investors can buy small stakes in companies and if the company is successful, they'll be rewarded with a great return. The initial public offering was 25% of the company.
Check out CrowdCube on this video:
The crowdfunding site from FrontFundr is truly Canadian. Their headquarters are located in Vancouver, BC and they have more than 3,000 successfully funded companies.
They have over 22,000 backers who have pledged millions to their campaigns since 2012. Backers can choose from two funding levels – starting at $10 for a campaign and going to $250 for the largest of projects.
To learn more about FrontFundr or to start your own campaign, check out this video:
GoGetFunding is another crowdfunding website worth checking out if you're looking for a platform for your niche.
This site is designed to help entrepreneurs and businesses in particular plus those looking to make a personal loan.
It covers topics such as a personal loan, when you should apply for one, and how they work. It also offers some great examples of people who have raised money through this site. It's worth checking it out if you're looking to raise money for a specific project or cause.
Here’s a great video about GoGetFunding:
Fundrazr lets you operate your campaign the way that best suits you. Whether you want to build your own website, create an e-commerce business, or just need help with marketing and social media and operations, this platform is for you. Fundrazr offers a wide variety of tools and resources that will help you run your campaign as smoothly as possible.
For example, they provide a pre-made template for your website, an easy start to the campaign, and a list of helpful tips for running successful campaigns. If you're looking to raise money for whatever cause or project you have in mind, then Fundrazr is definitely worth checking out!
Whether you need to raise money for a project, campaign, or idea, crowdfunding is the perfect option. These Canadian crowdfunding platforms offer at least 8 major benefits for those looking to do so. Use these 10 platforms to help ensure success in your new endeavour!