Indian crowdfunding sites help innovators launch ideas, social entrepreneurs make a difference and start-ups raise money. Most startups, small businesses, and individuals avoid complex funding methods. Financing from bank loans, venture capital, and angel investors require complex procedures. Additionally, before raising funding, startups should consider different funding phases to determine the type of funding. Crowdfunding is a much simpler and less complicated model. Let’s take a closer look at startup crowdfunding in India.
What is crowdfunding in India?
Crowdfunding is a method of collecting funds from the general public for specific purposes such as supporting new business ventures, creative productions such as book, film, and music releases, community causes, or donations to urgent medical needs. Organizations, groups, or individuals raise funds by asking large numbers of people for small donations.
Crowdfunding is described by the regulatory body, the Securities and Exchange Board of India (SEBI), as the raising of small sums of money from a large number of investors for a specific project, commercial venture, or charitable purpose. Money can be collected manually or online.
Which crowdfunding platform is best for startups?
9 Best Crowdfunding Platforms in India for Startups:
1. Wishberry
Indian crowdfunding sites help innovators launch ideas, social entrepreneurs make a difference and start-ups raise money. Wishberry is India’s largest crowdfunding platform, launched in 2012, with a success rate of 70% for creative projects.
The platform focuses on creative projects, including ideas and startups in the fields of art and design, film and other videos, music, dance, theater, publishing, comics, photography, etc. It also supports creative startups.
Wishberry does not accept product-based projects that include hardware, Iot, or non-tech products such as clothing. Its mission is to bring creative and innovative ideas to life and build a community of donors for creative ideas, consulting, and marketing services.
Wishberry is a rewards-based platform for projects they fund. It also offers personal consulting, social media management, PR and advertising, email marketing, and global payments. Most startups, small businesses, and individuals avoid complex funding methods. Financing from bank loans, venture capital, and angel investors require complex procedures.
Additionally, before raising funding, startups should consider different funding phases to determine the type of funding. Crowdfunding is a much simpler and less complicated model.
2. Kickstarter
Kickstarter is one of the most famous names in crowdfunding and arguably the most active platform. Kickstarter supports creative projects such as movies, music, games, technology, books, and research.
Since its launch on April 28, 2009, 17 million people have backed projects, pledged $4.5 billion, and funded 168,500 projects.
This platform does not accept humanitarian, charitable, or other projects for personal use. Kickstarter charges a 5% commission for each successfully funded campaign. The purpose of Kickstarter is to bring creative projects to life with a focus on creativity and merchandising. However, no charges or fees will be charged if the goal is not met within the allotted time.
3. Indiegogo
Indiegogo is more than just a crowdfunding site. This is a funding and marketplace platform. Fundraising is the first step here. Crowdfunding After his campaign is successful, activists can take their ideas to the next level and continue to raise funds.
The activist can then sell their products directly to her Indiegogo consumer network. The platform focuses on real, physical products compared to other platforms that fund initiatives and ideas.
4. Fundable
As one of the few crowdfunding websites in India fully focused on SMEs and businesses, Fundable offers campaigns in all economic sectors of India. The platform offers cross-industry campaigns.
Entrepreneurs and businesses in all industries use the platform, from fundraising for affordable clinical diagnostics to intelligent travel experiences within India. Other sectors include banking, travel, food and beverage, and fitness. In the New and Notable section, people who want to support can browse the latest and most exciting campaigns.
5. Ketto
Ketto is a crowdfunding platform that enables people and NGOs to raise money for their creative, social, and personal ends. The platform includes and offers campaigns for healthcare, startups, education, personal campaigns, sports, children’s and women’s empowerment, animal welfare, and similar purposes.
Ketto also offers a section on its website titled Urgent Fund Needed and campaigns that can offer tax incentives to donors. A Kerala flood project called Two Wheels of Hope successfully funded a campaign to provide bicycles for schoolgirls, among other campaigns listed on Ketto. The purpose of the platform is to create social change, raise awareness, and of course raise funds.
6. FuelaDream
FuelaDream helps you to raise money for startup projects, charities, social causes, and disaster relief. It allows activists to choose between AON ie. All or Nothing and KWYG, or Keep What You Get and believe in quality over quantity.
FuelaDream keeps the number of projects low in order to maintain credibility and credibility of the campaigns published on the platform. They offer a section called the audience favorites list that contains their most popular and funded campaigns.
With a focus on community-driven activity and creative ideas, the platform aims to change traditional fundraising methods and simplify the process.
7. Milaap
Milaap is the preferred platform for individuals, NGOs, and social entrepreneurs to raise funds for personal and social purposes. The platform provides microloans to people in rural and underserved areas of the country to support education, water, sanitation, health, and energy projects.
8. Crowdera
Crowdera, perhaps the lesser-known name among Indian crowdfunding sites compared to other names, is a completely free global crowdfunding platform launched in India in 2016. Since the platform is free, do not charge fees to anyone who starts a campaign and raises funds.
It is funded by the founders themselves. This crowdfunding site allows you to set a wide range of campaign funding targets, from a minimum target of Rs 500 to a maximum target of Rs 99,999,999.
9. Catapooolt
Catapooolt is India’s first crowdfunding platform. Catapooolt is a platform for funding personal projects such as art startups, film, music, art, and technology, or businesses and companies. It provides additional opportunities for activists to collaborate within our network of investors, accelerators, incubators, and mentors, as well as to support the marketing, sales, and distribution communities.
Catapooolt brings together the community, relevant partners, cutting-edge tools, and resources to deliver what every idea needs to succeed: funding and commitment.
By focusing on individual projects, startups, and companies, the platform becomes a comprehensive crowdfunding ecosystem.
How to start crowdfunding in India?
Find your crowdfunding niche
Choosing a niche can help your website stand out from the competition and add value to your campaign backers and producers. Every new crowdfunding platform or website has a specific market focus. In other words, your website contains crowdfunding campaigns for a specific topic or product class.
Use crowdfunding software
Find the right technology for your crowdsourced website. Not all technology costs money, but if you want your crowdfunding platform to be successful, it’s important to make sure it’s bug-free so that consumers have a positive experience on her website.
Real-time support is an advantage when choosing a SaaS (Software as a Service) product. This allows you to launch your website quickly and efficiently. Also, you will not be left alone to solve your site’s problems.
Connect your payment gateway
Crowdfunding is a great way to make money on the side. Depending on how you use the platform, you can set up your bank account, connect it to your payment gateway, and collect transaction fees. add content The most time-consuming phase is selecting a subject line and platform, linking your payment solution to your bank account, and then adding materials to your platform.
To make the user interface (UI) conform to the specification, you need access to the front-end source code. Without access to the front-end source code, you are limited to the standard product user interface and functionality.
Start platform
Once everything is set up, the platform will start. Therefore, before launching the platform, it is recommended to prepare a crowdfunding campaign to host the campaign on the platform.
Initially, promotions may come from friends and relatives on the new platform. If these campaigns are not available, you should start looking for them by logging into internet forums and crowdsourcing spaces in your field.
Publish your platform
The website is finally developed and online. The goal is to successfully market your crowdfunding platform and approach more campaign creators to start campaigns on your site.
This way you can earn money without any effort. For those who want to make money every month by simply accepting or rejecting crowdfunding initiatives, this is an excellent option.
What is the disadvantage of crowdfunding?
Disadvantages of crowdfunding :
1. Crowdfunding is rife with con artists:
Con artists are common in the crowdfunding industry. There are too many projects that were successfully funded but failed to complete the project. Many are exhausted by the lack of implementation, and trust between developers and early adopters is waning.
2. Approval has a minimum value:
There is a small halo effect from participating in popular funding portals, but investors will only write you a check if they think you are making an incredible deal. Being listed in some portal or not is as important as worrying.
3. Crowdfunding is expensive:
Many new entrepreneurs misunderstand logistics and fulfillment, do not properly budget COGS and shipping to make these crowdfunding campaigns successful, and end up losing money.
4. Degree and Visibility of Impairment:
Crowdfunding dramatically increases the transparency of results. Unlike bootstrapping and traditionally funded businesses, crowdfunding puts your early-stage performance in the public eye. Success is sweet, but failure hurts 100 times more.
5. Crowdfunding requires a lot of preparation:
This is more of a warning than a scam. Do not start a crowdfunding project without proper preparation and prior introduction. I have seen too many projects fail because proper steps were not taken before the project started. Please exercise caution before posting advertisements, composing emails, or publishing projects. That means running a good crowdfunding campaign is expensive.
FAQ: Startup Crowdfunding in India
1. Is crowdfunding for startups legal in India?
Yes, crowdfunding for startups is legal in India.
2. Is crowdfunding a good idea for a startup?
Crowdfunding is a great way for startups to raise money and build a community of backers. It’s a good way to market-test your business idea before committing fully.
3. Is crowdfunding better than VC?
Crowdfunding is a more flexible investment vehicle than VCs.
4. Which is the most successful crowdfunding project?
Here is a list of the most successful crowdfunding projects in the world.
- Oculus
- Pebble Time
- Star Citizen
- Exploding Kittens
- Flow Hive
Wrapping Up
Good ideas and startups need a financial boost. And with the growing number of crowdfunding sites in India, founders, and innovators have many options. Startup Crowdfunding in India is a great way for communities to come together to fund startups and drive their growth.