Crowdfunding is for people with big ideas, and that includes startup founders.
Just like inventors and creators can get their projects financed through crowdfunding, startups can get investment capital from the crowd, too.
Regulation crowdfunding (also known as equity crowdfunding) through companies like WeFunder has been a big hit with independent entrepreneurs.
It’s a way to match startup founders with online investors who can provide the capital they need to get their business off the ground.
If you’re looking to raise investment capital for your startup, there’s no better way to do it than online. That’s where you’ll find scores of investors who believe in your business, and there are quite a few websites, portals, and platforms waiting to help you navigate the world of Reg CF.
The most effective strategy for getting investors for your equity crowdfunding campaign is to examine as many of the best Reg CF and equity crowdfunding platforms as you can find.
When trying to identify which site is best for you, there are a few things you should take into consideration, such as how big the site is, what kind of opportunities it offers, and what kinds of companies have the most success with it.
To make this process easier for you, we’ve put together a list of the top 10 best REG CF Crowdfunding Websites, Portals, and Platforms.
These are the largest and most reputable places to get investors for your equity crowdfunding campaign, and each one offers its own risks and benefits to startup founders.
(By the way, if you want to know everything there is to know about crowdfunding for startups, we have a FREE course for you!
Our free equity crowdfunding course will show you how to raise funds, get investors, pick the right platform, and more. It’s well worth your while to check it out, and I guarantee it’ll answer all your biggest Reg CF questions.)
Of course WeFunder is at the top of the list!
With over 1.5 million investors, they remain the largest equity crowdfunding platform on the scene.
They are a great reg CF platform for unique companies hoping to raise investment capital online because they cater to almost every niche imaginable and have funded hundreds of startups.
WeFunder is also known for having helped the Obama Administration pass the JOBS Act in 2012, which legalized equity crowdfunding, and they boast that they are on a mission to “fix capitalism.”
Campaigns on WeFunder are required to raise at least $50,000 to be considered successful. Successful campaigns are charged a fee of 7.5% of the total fundraise.
WeFunder is one of the most reputable equity crowdfunding companies, and they alone generate around 33% of crowdfunded capital for startups, so if you determine they’re right for your project, theirs is a tried and true model of equity fundraising.
StartEngine was founded with the mission to help startups raise investment capital online, and they have since become one of the fastest growing reg CF websites
They host over 1 million members, and in 2022, they began taking steps to acquire fellow reg CF platform SeedInvest.
Their relatively low investment minimums make them attractive to investors, and startups they select are given a dedicated team of professionals to help with paperwork and marketing strategy.
Raises on StartEngine can take place through Reg CF and Reg A+.
Tech startups do particularly well on StartEngine, and some have raised over $1 million in investments, so they’re a great option for tech entrepreneurs looking for investors.
Republic.com is an equity crowdfunding portal that enables startups, real estate, video games, and crypto to get investment capital from the crowd.
The site claims that over 90% of campaigns they host meet their funding goals, and they have raised over $1 billion for startups in total.
They charge no upfront fees, but will take 6% of the cash raised and 2% of the security issued. They don’t subtract any fees from unsuccessful campaigns.
Republic is not known for producing the largest checks in the equity crowdfunding world, but their strong and highly active investor community is a definite plus for small startups with big aspirations to raise a portion of the funding they need.
According to Republic.com, most companies can expect to raise between $100 thousand and $1 million, and 29 companies that got their start on the platform are now worth over $1 billion.
Mainvest is one of the best equity crowdfunding websites for small businesses, and they have a special commitment to fostering the relationship between investors and customers.
They require newly-listed businesses to start by networking with members of their own community to find investors.
Once a company meets a few funding milestones, they’re given access to Mainvest’s growing bank of existing investors.
Mainvest doesn’t charge any upfront fees for startups. Instead, fees are calculated after a campaign has met all its funding goals.
Startups listed on Mainvest can expect to raise between $50,000 and $500,000 from the crowd.
CrowdCube hosts over 300,000 active investors and is one of the leading equity crowdfunding platforms for startups based in Europe.
They accept applications from private businesses at all stages of growth, from those that are just starting out to those that are looking to level up, and they will tailor their support for you based on your individual goal.
CrowdCube charges a preferential success fee of 7% and a completion fee of around 0.75%-1.25% of all funds raised.
The average investor-funded business on CrowdCube garners around £670,000. However, some of their most successful startups have raised capital in the millions through CrowdCube alone.
Founded with the mission to “protect and empower investors while helping businesses grow,” Seedrs is a UK-based equity crowdfunding portal that’s quickly becoming one of Britain’s most active reg cf hubs.
They offer opportunities for startups to raise investment capital from both the crowd and private investors.
Seedrs accepts applications from businesses in the US, UK, EU, EEA, and Switzerland, and since joining forces with Republic in 2022, their combined ecosystem includes about 2.5 million members globally.
Fees for successful Seedrs-funded startups include 6% of all funds raised, a £2,500 completion fee, and payment processing fees.
The platform accepts businesses that are looking to raise at least £/€150,000, and they claim that startups listed on Seedrs have a success rate of over 90%, so if you fit their criteria, you’re well on your way toward getting funding for your startup.
Founded in 2005, EquityNet is one of the oldest and most established equity crowdfunding websites.
The site only allows accredited investors to participate, and they currently have more than 20,000 active investors.
EquityNet is a great option for companies that are still finding their feet in the business world because they accept nearly 100% of applications from startups.
Rather than taking a percentage of funds, EquityNet charges monthly subscription fees, including a free starter plan, a $299/month Premium DIY plan, and $2,990/month Full Service plan.
According to EquityNet, successful campaigns can expect to raise between $100K and $100M, and to date, they have helped over 1,000 startups reach their funding goals.
The highly reputable reg CF platform MicroVentures has an impressive portfolio including companies like Spotify, Slack, Airbnb, and Lyft.
They specialize in helping startups that are looking to raise between $150,000 to $1 million in capital.
In comparison to many of the other sites on this list, MicroVentures has a very strict vetting process.
They accept less than 0.5% of the companies that apply, so they are not necessarily a good fit for brand new startups, but for more established companies they offer some great opportunities.
Over 200,000 investors have put up funds through MicroVentures, and they have collectively raised more than $450 million for private companies.
Microventures’ fees include a 5% commission, 2% equity, and $1,000 escrow fee for successful campaigns.
Equity crowdfunding site FlashFunders has remained staunchly committed to helping entrepreneurs raise investment capital online.
Automation is the keyword with FlashFunders. Unlike many other reg CF platforms, they are able to facilitate entire rounds of seed funding and produce very large checks.
According to the site, most companies that Flashfunders accepts are fairly well-established in their field and set goals between $500,000 and $2 million.
But FlashFunders is not without some risk. It’s an all-or-nothing equity platform, so companies that don’t fully meet their goals will not receive anything from investors.
However, if you’re confident in the goal you’ve set, FlashFunders can make the fundraising process remarkably streamlined and serve as your single stop to success.
Founded in 2010, AngelList has a long history as one of the original equity crowdfunding portals, and as a result, it has a powerful reputation with a growing community of investors.
AngelList is on a mission to connect angel investors with high-potential startups, and they cater specifically to tech companies.
Since 2013, they claim to have provided $6.3 billion worth of funds to tech startups, and this is part thanks to their unique syndicate model, which allows groups led by professional angel investors to pool their capital.
The syndicate model reduces the complexity of investor interactions for the startup founder, who enjoys the benefit of receiving funds from many investors while communication takes place chiefly through the lead investor only.
AngelList does not take any portion of funds raised. Instead, they offer three separate plans for startups priced at $50, $170, and $300 per month.
They also offer a free base plan for startups that have raised less than $1 million in capital, making them a very beginner-friendly option.
Equity crowdfunding is a great tool to empower private entrepreneurs and allow them to get investment capital from the crowd.
All great businesses need a passionate, driven entrepreneur with a group of inspired investors to support them. Once you get investors for your equity crowdfunding campaign, you can leave funding to them and keep growing your startup.
As long as you have a sense of direction and an idea you believe in, it really is just a matter of picking the right platform and knowing how to use it.
When it comes to crowdfunding websites for startups, there is no one-size-fits-all. It’s all a matter of what you and your business need most.
That’s why it’s worth your while to investigate all of the websites, portals, and platforms on this list and ask yourself what each one can do for your startup.
You may need to shop around a bit before you find your perfect match, but remember, the best equity crowdfunding website is the one that works for you.
If you’re interested in learning all the ins and out of equity crowdfunding and raising investment capital for your business, you need to do your research.
That’s why I’d like to offer you a free copy of Equity Crowdfunding Explained, so you can learn how to get funding from the crowd in a matter of minutes.
You can get your free copy with a free trial of Audible now and start gathering the capital you need to take your business to the next level!
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