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Angel investors and venture capitalists have been a major source of funding for small businesses in the past, but according to a recent survey by Massolution, crowdfunding may soon overtake both groups as the financing vehicle of choice.

The survey found that crowdfunding is on track to provide more funding to small businesses by 2016 than VCs. The crowdfunding industry has grown from just $880 million in investments in 2010 to $16 billion in 2014 and a projected $34 billion for 2015. By contrast, VCs make an average annual investment of $30 billion and angel investors contribute just $20 billion on average.

So if crowdfunding is the lending path of the future, how does one know where to start? With hundreds of sites to choose from, how can the list be narrowed? Here is a short list of some of the crowdfunding sites best suited to small business needs.

  • Bolstr – Small business owners can get loans from investors without giving up any equity. The investors are repaid monthly with payments that are proportional to the business’ revenue.
  • CircleUp – This site specializes in helping small businesses with tangible consumer products.
  • Crowdfunder – Businesses needing early stage funding can sell off some of their equity for much needed capital.
  • EarlyShares – This site allows small business owners to either sell equity or garner loans, and holds the entrepreneur’s hand through the whole process.
  • Fundable – Business owners can offer equity shares in exchange for cash investments.
  • Funders Club – This site connects business owners with angel investors by bundling small business offerings into venture funds for investors.
  • IndieGoGo – Business owners can choose fixed or flexible funding options. With fixed funding, entrepreneurs must reach their total fundraising goal to collect anything. With flexible funding, they can keep what they earned, for a fee, without meeting the whole goal.
  • Kickstarter – This site specializes in creative projects and ventures but it requires hitting all-or-nothing funding goals.
  • MicroVentures – Small business owners are matched up with angel investors and VCs who share their passion , offering equity for cash.
  • Seed Invest – This company specializes in online funding for tech start-ups.

If none of these seems to fit the bill, no need to worry. There are plenty more that might meet your company’s specific needs. Search the site directory at crowdsourcing.org  for more information.


Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources