Equity crowdfunding - Which platform should your company fundraise on?
Deciding which equity crowdfunding platform is the best for your company can be an extremely time consuming and impactful decision. With over 45 different platforms, picking the right one could make the difference and push your company to a successful raise. In the current market the majority of raises happen on a few of the largest sites. However many other platforms exist and are leading companies to securing large raises. In this article we’ll layout all the options.
The two types of crowdfunding platforms
Equity crowdfunding platforms fall into two categories, General and Industry Specific. General platforms take host a variety of companies, using their wide range of listings to attract investors who consider a many types of companies. Industry specific platforms cater to a specific type of business, and in doing so attract a very specific investor audience. Ultimately applying to the top 2 to 3 general platforms, as-well as 1 to 2 industry specific platforms is a great approach.
General crowdfunding platforms
Platforms that are non-industry specific have the advantage of attracting a larger audience for your company. Sometimes just getting in their monthly newsletter could account for a large percentage of your raise. It is important to keep in mind that they generally list many companies, which means you may have to compete with similar business for funds. Below are the top general equity crowdfunding platforms.
MicroVentures - One of the oldest equity crowdfunding platforms
NetCapital - A relatively smaller growing platform
Republic - Has a selective process for applicants
StartEngine - The largest site in terms of web traffic and company listings
SeedInvest - A more tech oriented platform
Wefunder - Has helped multiple companies raise past the $1,000,000 mark
Industry specific crowdfunding platforms
Targeting your raise to an already interested population can help further secure funds. Consider the audience that each specific platform brings, marketing your raise to those already interested in similar projects is key. If you are raising money in St. Louis, Missouri for example, the platform ‘nvstedwithus’ (a platform specifically targeting local St. Louis business), should be considered. Raising money to drill an oil well? Energyfunders may be your best bet. Below you’ll find a quick overview of the top platforms for different industries.
Top real estate equity crowdfunding platforms
Top energy equity crowdfunding platforms
Top Local Business oriented equity crowdfunding platforms
- Honeycomb Credit
- Buy The Block
- Silicon Prairie Holdings
- Crowdfund Mainstreet
Top Technology equity crowdfunding platforms