10 Best Crowdfunding Websites And Blogs In 2023

10 Best Crowdfunding Websites and Blogs in 2023

Raising capital for businesses in Canada can be a major hurdle for entrepreneurs. This is because of the harsh economic conditions and the complications of borrowing loans from banks.

With the best crowdfunding websites and blogs, you have a good chance of raising the required funds that can change your life.

Although bank loans and inventory financing options are excellent fundraising options, crowdfunding offers something better. With this capital raising, a group of people invest in your business idea to make it a reality.

The thousands of crowdfunding websites and blogs in the world allow entrepreneurs to raise funds. In the last four years, crowdfunding has added about C$65 million globally. This Guide will discuss factors to consider before choosing a crowdfunding website and the best crowdfunding websites to explore.

What is crowdfunding?

Crowdfunding is a money-raising strategy that involves a collective contribution to raising a huge amount of capital. This is unlike traditional fundraising, which is based on raising money from an accredited investor in Canada.

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How does crowdfunding work?

Crowdfunding backers are offered some form of reward in addition to their support. Some of these incentives include:

  • The chance to become an early adopter of the product
  • The opportunity to pre-order a commodity
  • Exclusive rewards such as discounts or free swag.
  • Equity in a start-up with huge potential.

Although every crowdfunding platform has its own features, free structure, and user base, the core rudiments are the same.

5 factors to consider when choosing a crowdfunding website

There are thousands of crowdfunding websites and blogs to choose from. These Canadian fundraising sites have different features when choosing the best crowdfunding websites and blogs. These are:

Ease of Use

Before asking for a fundraiser from various crowdfunding sites and blogs, you need to check the UI and UX of the platform. The top crowdfunding websites in Canada make browsing on their platforms simple and easy. You can easily navigate around the website when using an excellent platform.

Customer Website

The manner of customer service a crowdfunding blog and website offer is very important. Do they provide email support, live contact, and a phone helpline?

Also, the best crowdfunding site should have a bot that will respond to your inquiries easily. A crowdfunding platform must be reliable, trustworthy, and satisfy customers optimally.

Tools for Spreading Awareness on Social Media

Another crucial SERVICE the best crowdfunding websites and blogs in Canada should have are the social networking tools they offer.

You can use this fundraising integration platform to make it easy to share on Twitter, Twitch, Facebook, and Instagram. Social media remains a vital part of crowdfunding, as it’s important that the website has the necessary tools to share features.

Crowdfunding Fee Comparison

Most crowdfunding websites and blogs have a fee attached before the process begins. A percentage of the total amount raised from crowdfunding will be collected by the platform.

The crowdfunding fee varies from one site to another. Check for punitive fees  and the structure of payments. Some of these crowdfunding platforms increase their fees when they don’t meet their targets.

Brand Recognition and Trust

Another crucial factor to consider when looking at the best crowdfunding websites and blogs is the name. It’s better to use crowdfunding sites that are popular and known.

When you use a well-known crowdfunding website, they tend to offer better services. There is more confidence when you use a platform that is well-known and has positive reviews.

Different types of business crowdfunding

Here are the common categories of crowdfunding you can find online:

Equity Crowdfunding

This is a traditional category of funding that is common for small businesses in Canada. In this type of crowdfunding, you sell some of your business to an investor or group of investors, and they will offer you the capital you need to make the business viable.

Donation Crowdfunding

People who are into non-profit ventures or who deal with local businesses will love this crowdfunding category. This type simply involves the creation of a campaign asking people for financial donations.

People who want to own a car can ask for donations instead of taking out car loans. which can be expensive. This is more of a charity donation, as you don’t have to repay the funds.

Debt Crowdfunding

Debt crowdfunding, also known as ‘marketplace funding, is when entrepreneurs borrow funds from other individuals instead of a bank. The money borrowed is set at an annual percentage rate, and the loans are structured like traditional business loans.

Rewards Crowdfunding

This is the most popular type of crowdfunding in Canada. In this type of crowdfunding, funders are offered goods, services, or other incentives for some donations. A good example is if an individual needs funding for his catering business. They will offer anyone who provides funding a certain amount of free snacks.

The 10 best crowdfunding websites and blogs in Canada

Here are the top websites and blogs to consider when you need to raise funds through crowdfunding in Canada:

Indiegogo

Indiegogo remains one of the best crowdfunding websites and blogs in Canada . This is a robust platform which supports small and medium businesses in the country.

This site comes with simple tools and has many excellent campaign options. You have the option to choose a fixed funding goal or a flexible goal for your funding campaign.

When you select the flexible funding goals, you will get funds regardless of whether your target is met.

The flexible funding option is a good choice if you are trustworthy and can fulfill all promises made to your backers. Also, there is an Indiegogo Indemand option that allows you to continue to raise money when your campaign ends.

The Indiegogo Indemand feature is available to you if you are running a campaign on the platform or another crowdfunding website.

Fee: 6% registration fee if your goal is net. This excludes payment processing fees

Indiegogo pros

  • The services are available in 240 countries worldwide.
  • It has flexible options to start campaigns.
  • You can easily connect with your Facebook and Google accounts to promote your campaign.

Indiegogo cons

  • Aside from the 6% fee, there is a third-party charge.
  • There are too many campaigns on the site.

Kickstarter

Kickstarter is another one that makes the list of the best crowdfunding websites and blogs in the world. You can find support for creative projects, artwork, and new businesses on this site. It started operations in 2009, and the site has helped millions of people raise close to C$7.32 billion.

Kickstarter is more of a reward-based website where different backers offer incentives to support you. Some of the incentives you might be offered include shoes, branded t-shirts, and discounts.

The more funds offered by a backer, the more enticing the rewards. However, it is important to note that with Kickstarter campaigns, you must meet your initial fundraising target before you can be paid.

If the target isn’t met, then the money remains with the funders. That’s why most projects crowdfunded on Kickstarter are of high quality and very innovative. Also, most backers on Kickstarter find projects on the website more trustworthy.

Kickstarter fees

The fee accepted on the platform is 5% when the goal is met. There are also payment transaction fees, which range between 3% and 5%.

Kickstarter pros

  • It is a trustworthy platform
  • Campaigns that are accepted have access to more than 20 million project backers.
  • Their services are available in more than 40 countries globally

Kickstarter cons

  • It is very competitive, which means approval can be difficult.
  • Campaigns must fall under Kickstarter’s pre-selected categories.

DonorBox

The DonorBox crowdfunding platform is one of the top equity crowdfunding platforms in Canada. Donor Box has helped more than 300 businesses in Canada raise capital.

The platform has had about 75,000 successful campaigns. The most common businesses that are crowdfunding on this platform are tech and e-commerce businesses.

To raise money on Donor Box, you need to register for an account. This entails filling out an application and completing an assessment process. If your application is accepted, create a profile and start your campaigns.

DonorBox fees

They have a Standard placement fee of 7% and a 5% equity fee, depending on how much is raised.

DonorBox pros

  • This is a popular crowdfunding platform
  • The site is user-friendly
  • It has low payment processing fees.
  • Available in 96 countries

DonorBox cons

  • None

GoFundMe

Unlike most crowdfunding websites, which are designed to fund startups and businesses, GoFundMe is primarily a free platform to raise funds for individuals and charitable causes.

GoFundMe is an excellent choice for individual fundraising, which means anyone can create a campaign easily. However, it’s important to note that most backers on this site tend to fund members who are in their networks. Also, you will likely get funds if the cause is a familiar one or a national issue.

The GoFundMe website isn’t meant for commercial crowdfunding campaigns, like other platforms. But if you are a small or medium business owner who is having a hard time raising cash or you have a serious ailment that needs to be attended to urgently, this platform will support you.

GoFundMe fees

Free for personal and charity campaigns. There is a 3% transaction fee for debit and credit card charges. Also, there is a C$0.40 fee per donation.

GoFundMe pros

  • No registration fees
  • A great platform to seek funds for personal business
  • Easy website to use

GoFundMe cons

  • GoFundMe isn’t ideal for raising huge funds for businesses

CrowdSupply

Another top crowdfunding site in Canada is CrowdSupply. They are primarily a ‘preorder’ platform where people can commit to funding product ordering in the manufacturing sector.

This platform has been around since 2012 and remains one of the go-to places for Canadians.

Unlike other platforms, CrowdSupply is a bit exclusive to crowdfunding businesses. You will need to sell your idea to experts and professionals. This is to show that you can complete production once your funding target is met. However, if your target isn’t met, the money raised will be refunded to the donors.

CrowdSupply fees

This platform charges 12% of your target goals based on your plan. There is also a 2.8% plus C$0.45 fee for each donation.

CrowdSupply pros

  • The website provides professional Guidance with campaign management.
  • When the campaign ends, you can sell the goods on the site.

CrowdSupply cons

  • Fees are high
  • Small backers

MightyCause

Mighty Cause is one of the best crowdfunding websites and blogs in Canada and offers help to businesses. It was formerly known as Razoo and has helped raise more than C$750,000 for all causes.

Most people love this platform because you can raise funds for large events and communities. MightyCause supports charitable donations like giving Day and community-based competitions where NGOs sign up to get donations.

With MightyCause, they offer a free starter plan that allows you to use unlimited campaigns. The platform also has donation tools that can be integrated with your website and P2P platforms.

There is an advanced plan of C$99 monthly. This plan allows you to have access to a CRM dashboard, data integration, and marketing tools.

MightyCause fees

There is a procession fee of 3% in addition to C$0.45 per donation. There is also a processing fee of 2% plus C$0.30 for charitable causes. Also, monthly rates range from C$59 to C$99.

MightyCause pros

  • There is Guidance from an expert coach.
  • Donors can agree to cover all fees as part of the donation.
  • The Advanced plan comes with a free trial

MightyCause cons

  • Sometimes, there is a technical glitch with the platform
  • It isn’t well known throughout Canadian provinces.

Patreon

The Patreon platform is widely used by many Canadians who want to source funds. It is used in the arts and creative communities to fund startup projects.

Since it was launched, it has facilitated more than C$3 billion in crowdfunding for people, families, and communities. This website is ideal for small businesses in Canada, lifestyle startups, and remote workers.

Patreon fees

There is a flat 7.5% platform fee on all money raised. Also, there is a 2% charge for payments made.

Patreon pros

  • It’s easy to set up a monthly subscription.
  • You will enjoy flexible funding options, which are ideal for campaigns.
  • Easy integration features make campaigns easy.

Patreon cons

  • Platform fees are high
  • Not recommended for tech startups

Crowdfundr

People who have a Shopify account and store will find this platform useful. The Crowdfundr app for Shopify is a nice fit for e-commerce businesses.

With Crowdfundr, you do not have to start from scratch to raise money; you can simply transform an existing product page. You will see the progress bar, which will show how much money has been raised and how many items have been ordered.

Crowdfundr allows people to place orders as a way to validate a project. Also, you can avoid charges from third-party platforms for a more affordable monthly fee. You can use this platform to test out new projects, raise funds, and embark on the new year’s innovations.

Crowdfundr fees

There is a monthly fee of C$25, which doesn’t include your Shopify subscription.

Crowdfundr pros

  • It is a simple type of crowdfunding
  • It shows the progress of your campaigns

Crowdfundr cons

  • Only enjoyed by Shopify store owners

Fundable

The Fundable platform provides an equity-based reward funding system for businesses in Canada. Fundable isn’t like regular crowdfunding websites, as it doesn’t deduct from your earnings. Members of this website subscribe by paying a monthly fee.

 After making the payment, the platform will immediately approve you so that you can start creating campaigns to raise money. This is a great platform that supports Canada-based startups, high-growth firms, and tech businesses.

Fundable fees

There is a C$179 platform fee and a 3% processing fee for all payments.

Fundable pros

  • Those who engage in equity crowdfunding campaigns keep their funds even when their goal isn’t met.
  • Access to extensive online resources.
  • Affordable monthly fee.

Fundable cons

  • Not available in all countries
  • You will pay a registration fee, whether your campaign is successful or not.

FundRazr

FundRazr also made it to the list of the best crowdfunding websites and blogs you can find. It is a Canadian platform that has something for everyone.

This site works with people who want to access their funds immediately and those who want to wait for a desired goal. It is ideal for nonprofits and NGOs, providing a service that connects them with thousands of helpers.

FundRazr campaigns on this website are free to create and easily managed. The campaign fees vary depending on the reason for the request. However, contributors can agree to pay part of the fees.

FundRazr fees

The Free-tier I platform fee is 0%, and the Standard-tier charges 5%. Also, the processing fee of 2.9% remains constant, plus a C$0.40 fee for each donation.

FundRazr pros

  • Catchy platform design which permits users to personalize campaigns
  • Interface is user-friendly

FundRazr cons

  • Limited number of backers based on network
  • The campaign takes time to be completed
Best Crowdfunding Websites And Blogs - Comparewise

Final thoughts on the best crowdfunding websites and blogs

Canadians who need financial help for their businesses or individual needs should consider crowdfunding. As we have discussed above, crowdfunding offers an extensive avenue of fundraising that differs from traditional financing.

We have discussed above the best crowdfunding websites and blogs you can find in Canada. Register with them today and start a campaign.

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FAQs about the best crowdfunding websites and blogs

What are the 4 types of crowdfunding that exist?

The four types of crowdfunding that exist include debt, equity, rewards and donation. If you want to run a successful campaign, you will need to get the attention of donors and backers.

What is the most established crowdfunding site?

Kickstarter remains the most established crowdfunding website in Canada. It was established in 2009 to provide support for different projects and startups.

Is there a free crowdfunding sites?

Yes, GoFundMe is a free crowdfunding website to ask for donations. Anyone that needs a quick campaign for any cause should register on the site.

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July 23, 2023
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