Crowdfunding is a method of raising funds for a project or venture by soliciting small contributions from a large number of people, typically via the Internet. It has become an increasingly popular way for entrepreneurs, artists, and social causes to raise capital, bypassing traditional financing sources such as banks and venture capitalists.
Crowdfunding platforms typically allow creators to pitch their ideas, set fundraising goals, and offer incentives for different levels of contributions. The platform then facilitates the payment and delivery of the incentives and takes a commission on the funds raised.
There are several types of crowdfunding, including donation-based, reward-based, equity-based, and debt-based. Donation-based crowdfunding involves soliciting donations without any expectation of a financial return, usually to support a charitable cause. Reward-based crowdfunding offers backers a tangible reward in exchange for their contribution, such as a product or service. Equity-based crowdfunding allows backers to invest in a company in exchange for equity, while debt-based crowdfunding allows backers to lend money to a company in exchange for interest payments.
Crowdfunding has had a significant impact on the startup and creative industries, providing a new avenue for entrepreneurs and artists to raise capital and build a community around their projects. It has also been used to fund social causes and charitable initiatives, democratizing philanthropy and enabling individuals to contribute to causes they care about.
In Europe, there are a number of crowdfunding companies that have emerged as leaders in the industry. These companies offer a range of services and specialize in different types of crowdfunding. Some of the top crowdfunding companies in Europe include Kickstarter, Seedrs, Indiegogo, Crowdcube, Ulule, Companisto, Wiseed, FundedByMe, Invesdor, and Crowd for Angels.
Here are the Top 10 Best Crowdfunding Companies in Europe 2023:
- Seedrs: Seedrs is a leading crowdfunding platform in Europe that enables investors to invest in startups and businesses. The platform allows investors to invest in startups in exchange for equity, with minimum investments as low as £10. Seedrs has helped more than 1100 businesses raise over £1 billion in funding since its launch in 2012. The platform is known for its transparent and investor-friendly approach, with a user-friendly interface and easy-to-understand investment opportunities.Seedrs is a leading equity crowdfunding platform in Europe, offering a way for entrepreneurs to raise capital from a wide pool of investors in exchange for equity in their company. Based in the UK, Seedrs has facilitated the investment of over £1 billion in more than 1,500 companies since its launch in 2012.
Seedrs offers a variety of investment opportunities across various sectors, including technology, healthcare, and consumer products. The platform enables investors to invest as little as £10 in exchange for a share in the company, making it accessible to a wide range of investors. Seedrs also provides a secondary market, enabling investors to sell their shares in companies that have successfully raised funds through the platform.
Seedrs prides itself on its due diligence process, which involves a comprehensive review of each company’s business plan, financials, and management team before listing on the platform. This ensures that only high-quality investment opportunities are made available to investors.
The platform also offers a range of support services to entrepreneurs, including guidance on fundraising, access to a network of investors, and marketing support to promote their investment campaign. Seedrs charges a fee for its services, which includes a percentage of the funds raised by the entrepreneur.
Seedrs has won numerous awards for its innovation and contribution to the fintech industry, including being named as the Best Investment Platform at the 2021 British Bank Awards. The platform has also been recognized for its commitment to diversity, equity, and inclusion, with over 60% of its portfolio companies having at least one female founder or co-founder.
Overall, Seedrs is a reputable and reliable crowdfunding platform that has helped numerous entrepreneurs raise capital and grow their businesses. Its commitment to due diligence and support for entrepreneurs make it a popular choice among both investors and entrepreneurs alike.
- Crowdcube: Crowdcube is a UK-based crowdfunding platform that allows individuals to invest in startups and early-stage businesses. Since its launch in 2011, Crowdcube has raised over £1 billion in funding for more than 1,000 businesses. The platform offers a range of investment opportunities, including equity crowdfunding, debt financing, and mini-bonds. Crowdcube is known for its user-friendly interface, extensive investor network, and focus on supporting early-stage businesses.Crowdcube is a leading equity crowdfunding platform based in London, UK. It was founded in 2011 by Darren Westlake and Luke Lang and has since then become one of the biggest crowdfunding platforms in Europe. Crowdcube allows businesses and entrepreneurs to raise funds for their ventures by selling equity in their companies to investors.
The platform has raised over £1 billion for more than 1,000 businesses since its launch, with an impressive success rate of 77%. Crowdcube is known for its user-friendly platform and provides a range of services for startups, including legal support, marketing and PR, and investor relations.
One of the unique features of Crowdcube is the opportunity for investors to become shareholders in the companies they support, with the ability to buy and sell shares in the secondary market. This provides investors with liquidity, allowing them to trade shares and exit their investments if they choose to do so.
Crowdcube has also introduced a new product called the “Mini-bond,” which allows businesses to raise debt financing from investors. Mini-bonds offer a fixed rate of interest to investors and are an attractive option for businesses that do not want to dilute their equity.
The platform has been recognized with numerous awards, including Best Crowdfunding Platform in 2017 and 2018 at the British Small Business Awards, and Best Investment Platform in 2019 at the Consumer Investment Awards.
Overall, Crowdcube is a great platform for businesses and investors alike, providing a simple and user-friendly platform for raising and investing capital. With its innovative approach to equity crowdfunding and its commitment to supporting startups, Crowdcube is a leader in the European crowdfunding industry.
- Kickstarter: Kickstarter is a global crowdfunding platform that enables creators and innovators to raise funds for their projects and ideas. The platform has helped fund over 200,000 projects since its launch in 2009, raising over $6 billion in total. Kickstarter operates on a reward-based model, with backers receiving rewards in exchange for their support. The platform is known for its focus on creative and innovative projects, as well as its user-friendly interface and supportive community.
- Indiegogo: Indiegogo is a global crowdfunding platform that enables individuals and businesses to raise funds for their projects and ideas. The platform operates on a reward-based model, with backers receiving rewards in exchange for their support. Since its launch in 2008, Indiegogo has helped fund over 800,000 projects, raising over $2 billion in total. The platform is known for its user-friendly interface, flexible funding options, and supportive community.
- GoFundMe: GoFundMe is a global crowdfunding platform that enables individuals and organizations to raise funds for a wide range of causes and projects. The platform has helped raise over $10 billion in funding since its launch in 2010. GoFundMe operates on a donation-based model, with individuals and organizations receiving donations from supporters. The platform is known for its user-friendly interface, an extensive network of users, and focus on social causes and charitable projects.GoFundMe is a crowdfunding platform that enables individuals and organizations to raise funds for various causes and needs, including medical expenses, education costs, personal projects, charitable causes, and disaster relief efforts. The platform was founded in 2010 and is headquartered in California, USA.
GoFundMe offers a user-friendly interface that allows fundraisers to create a campaign page in minutes and share it with their network via social media and email. Donors can make a contribution using a credit card or PayPal, and the funds are deposited directly into the fundraiser’s bank account.
The platform has raised billions of dollars in donations, and its success stories include campaigns that have raised millions of dollars for individuals and communities in need. GoFundMe is known for its commitment to transparency and security, with measures in place to prevent fraudulent activity and ensure that donations are used as intended.
In addition to individual fundraising, GoFundMe has also launched several programs to support charitable organizations and social causes. The platform’s COVID-19 Relief Fund has raised millions of dollars to support healthcare workers, small businesses, and other groups impacted by the pandemic.
Overall, GoFundMe has established itself as a leading crowdfunding platform in Europe and worldwide, with a strong reputation for user-friendliness, transparency, and social impact. Its ease of use and accessibility have made it a popular choice for individuals and organizations seeking to raise funds for a wide range of causes and projects.
- Ulule: Ulule is a crowdfunding platform that enables individuals and businesses to raise funds for creative and innovative projects. The platform operates on a reward-based model, with backers receiving rewards in exchange for their support. Since its launch in 2010, Ulule has helped fund over 30,000 projects, raising over €200 million in total. The platform is known for its focus on creative and innovative projects, as well as its user-friendly interface and supportive community.
- FundedByMe: FundedByMe is a crowdfunding platform that enables individuals and businesses to raise funds for a wide range of projects and ideas. The platform operates on a reward-based and equity-based model, with investors receiving equity in exchange for their support. Since its launch in 2011, FundedByMe has helped fund over 500 projects, raising over €50 million in total. The platform is known for its user-friendly interface, an extensive network of investors, and focus on supporting innovative and disruptive ideas.
- Symbid: Symbid is a crowdfunding platform that enables individuals and businesses to raise funds for their projects and ideas. The platform operates on an equity-based model, with investors receiving equity in exchange for their support. Since its launch in 2011, Symbid has helped fund over 150 projects, raising over €20 million in total. The platform is known for its focus on supporting early-stage businesses and its user-friendly interface.Symbid is a crowdfunding platform based in Rotterdam, Netherlands, founded in 2011 by Robin Slakhorst and Korstiaan Zandvliet. The company provides a platform for entrepreneurs and startups to raise funds from a large community of investors. Symbid offers two main services: crowdfunding and funding preparation. Crowdfunding enables businesses to raise funds from a large number of investors, who can invest as little as €20. Symbid offers two crowdfunding models – equity crowdfunding and convertible loans.
In the equity crowdfunding model, investors receive shares in the company in return for their investment. This allows entrepreneurs to raise capital without having to give up control of their company. In the convertible loan model, investors provide a loan to the company that can be converted into equity at a later date.
Symbid’s funding preparation service offers entrepreneurs support in preparing their crowdfunding campaigns. This includes assistance with financial planning, marketing, and legal compliance. The company also provides access to a network of investors and mentors.
Symbid has gained a reputation as a leading crowdfunding platform in the Netherlands and has helped numerous businesses to raise funds, including healthcare startup MedApp and electric vehicle manufacturer Lightyear. In 2018, Symbid was acquired by fellow crowdfunding platform Nxchange, which has since rebranded the platform as Nxchange.
Symbid has been recognized for its innovative approach to crowdfunding and has won several awards, including the Accenture Innovation Award and the Rotterdam Entrepreneurship Award. The company has also been featured in publications such as Forbes, CNBC, and The Wall Street Journal.
- Kickstarter: Kickstarter is a crowdfunding platform that helps creative projects come to life. It was founded in 2009 and is headquartered in New York City. Kickstarter operates in many countries around the world, including Europe. The platform has helped fund a wide range of creative projects, from independent films and music albums to innovative tech gadgets and video games.Kickstarter is a crowdfunding platform founded in 2009 in Brooklyn, New York, that focuses on creative projects, including art, music, film, technology, and design. Kickstarter has helped thousands of projects get off the ground by enabling creators to raise money from backers all over the world. The platform operates on an all-or-nothing model, meaning that projects must reach their funding goal in order to receive any of the money pledged by backers. Kickstarter takes a 5% fee from successfully funded projects, and creators are responsible for covering the costs of processing payments.
Kickstarter has funded a wide range of successful projects, including films like “Moonlight” and “Inequality for All,” games like “Exploding Kittens” and “Cards Against Humanity,” and technological innovations like the Pebble smartwatch. The platform has also become a hub for community-driven projects and has helped support local initiatives like community gardens and public art installations.
One of the unique features of Kickstarter is that backers receive rewards in exchange for their support. These rewards can range from early access to products to personalized thank-you notes, to custom-made artwork or other exclusive merchandise. This system helps incentivize people to support projects and has led to some highly successful campaigns, like the Pebble smartwatch, which raised over $10 million in funding.
Overall, Kickstarter has been a game-changer for creative entrepreneurs and innovators, providing a platform for people to share their ideas and get the support they need to turn those ideas into reality.
- Indiegogo: Indiegogo is a crowdfunding platform that was founded in 2008 and is headquartered in San Francisco, California. The platform allows individuals and businesses to raise funds for their creative projects, entrepreneurial ventures, and charitable causes. Indiegogo operates globally, including in Europe, and has helped fund thousands of successful campaigns over the years.Indiegogo is a crowdfunding platform founded in 2008 that allows individuals and organizations to raise funds for a variety of creative and innovative projects. The company is headquartered in San Francisco, California, and operates globally, with users from over 235 countries and territories.
Indiegogo’s platform is known for its flexible funding options, which allow fundraisers to keep the funds raised even if they do not meet their original funding goals. The platform also offers a range of other features, such as the ability to run multiple campaigns simultaneously and the option to use either fixed or flexible funding.
Indiegogo has supported a wide range of projects, from films and music albums to technology products and creative arts. The platform has been used to launch successful products such as the Tile tracking device, the Flow Hive beehive, and the Jibo social robot.
In addition to its crowdfunding platform, Indiegogo offers a range of resources and services for entrepreneurs, including marketing and PR support, manufacturing and fulfillment services, and access to a network of experts and advisors.
Indiegogo has received several awards and recognitions for its innovative approach to crowdfunding, including being named one of the “Top 10 Most Innovative Companies in Crowdfunding” by Fast Company in 2015.