- USA based Equity Based crowdfunding
- Many projects progress from Kickstarter/Indiegogo
- Exclusively targets business ventures
- Suitable for start-ups and SMEs
- Welcomes non US based projects (but only US investors)
Crowdfunder.com is the platform for raising investment, and has one of the largest and fastest growing network of investors. After getting rewards-based funding on Kickstarter or Indiegogo, companies are often giving the crowd the opportunity to invest at Crowdfunder to raise more formal investment. Crowdfunder offers equity crowdfunding currently only from individuals, angels, Venture Capitalists…
The company was established in December 2011 and is based in Los Angeles, California. This platform is used entirely for business ventures and is not designed for personal crowdfunding campaigns. The platform is particularly suitable for new entrepreneurs trying to break into business, is useful for raising capital for the production of a new product, and is beneficial for those trying to expand their existing business or break into a new area.
The crowdfunder platform matches a list of potential investors to a specific campaign, provides easy social media sharing, helps ensure that a campaign and also fundraising remains within the existing US regulations set out by the JOBS act. According to crowdfunder.com, the platform welcomes U.S. and non-U.S. issuers. (However, it is Crowdfunder’s policy to not allow non-U.S. residents to invest in public offerings on Crowdfunder due to the complexities of complying with securities laws in non-U.S. jurisdictions).
The crowdfunding platform does not charge a percentage of the funds raised but instead charges a monthly subscription fee. The account itself is free and the customer/entrepreneur pays a subscription of $299 per month of active campaigning. Campaigns generally run over 60 to 90 days total length and suggested minimum investment amounts are usually set at between $5k-25k (€4.6-23k). The idea here is not to attract an enormous amount of contributors of low donation amounts, but real investors contributing significantly to a particular venture.
Crowdfunder has a range of tools and resources for those running a crowdfund campaign, and provides access to a pool of investors who are already interested in investing in a company. This increases the chances of success and eliminates the ‘needle-in-a-haystack’ approach to crowdfunding. Crowdfunder provides not only a platform for those looking to raise funds but also provides crowdfunders with sufficient tools and expertise to make their crowdfunding campaign a real success.
Crowdfunder is a very broad and industry-agnostic platform. According to crowdfunder.com, the platform supports industries operating in Advertising & Marketing, Arts, Fashion& Media, Business to Business, Cleantech, Construction & Manufacturing, Consumer Products, Energy/Transport, Finance, FinTech, Food & Beverage, Healthcare, Hospitality, Impact Investments, Internet, Lifestyle, Mobile & Gaming, Real Estate and Technology. So far, the platform has managed to attract quite a few tech startups, consumer product and entertainment companies, as well as for-profit social enterprises.