The recent field of crowdfunding platforms has witnessed significant growth in Europe. Crowdfunding is used for charities, investments, financing companies, and personal needs. Many people spend their fair share of time using crowdfunding to donate to countless causes for philanthropic activities.
With the rough usage of technologies, especially social media, crowdfunding has developed to a new level. But with several options, there are just a few reliable options for crowdfunding platforms in Europe. That is why knowing which crowdfunding platform suits your needs is essential.
Even after the Covid-19 pandemic, many crowdfunding platforms have remodelled their business models for their users and have seen a substantial crowdfunding market volume in 2020-21. This blog will help you to choose the ideal platform for you among the best crowdfunding sites.
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Table of Contents
What Do Crowdfunding Platforms Do?
Crowdfunding Europe allows people to contribute to a campaign, project or company. It involves gathering small amounts of money to provide the necessary capital to get the project or company off the ground. Individuals can also contribute to a campaign for their favourite cause.
Instead of relying on traditional funding sources, such as bank loans, fundraising is a more innovative approach to raising funds. It allows individuals and organisations to start a new business or fund a charity without going through the laborious process of creating a business plan and market research.
Using the best crowdfunding websites can help achieve their goal in less time and with the utmost ease. Another thing about reliable crowdfunding platforms Europe is that you know where your money is going or where it comes from.
How Do I Choose A Crowdfunding Platform?
Your first thought might be to Google this. However, if you type “crowdfunding Europe” or “crowdfunding charity”, you will get tons of hits. On the one hand, it’s fantastic that you get so many results on your search; on the other hand, you still don’t know where to look for answers and which one to choose among the best crowdfunding sites.
That’s why we want to give you a little hand. We’ll provide you with 10 top crowdfunding sites that will show you which crowdfunding platforms are the most prominent crowdfunding platforms that can ease the pain and help you to donate sooner.
By the end of this informative writing, you will likely choose your favourite platform from the best crowdfunding platforms Europe.
Which Crowdfunding Site Is The Best?
There are several criteria to consider before starting a fundraiser through a fundraising platform. Number one is the reliability of the crowdfunding platform. The other options to consider are accessibility, user experience, and understanding of the system behind the platforms. Let us now have a look at the most prevalent crowdfunding platforms in Europe.
WhyDonate is one of the largest crowdfunding platforms in Europe. The platform is specifically designed to raise money for any cause. Here you can donate money or start fundraising for a charity yourself. It also supports private fundraising projects. Among the best crowdfunding websites, this platform is undoubtedly the best one.
If you’re a registered company crowdfunding on WhyDonate, they will check if you are registered with ANBI and have a CBF quality label. WhyDonate, one of the free crowdfunding platforms, also facilitates companies and organisations who want to set up their crowdfunding platform. If you want a perfect space to help you with crowdfunding in Europe, consider WhyDonate and start donating to your cause without hassle.
In March 2011, FundedByMe was founded in Stockholm, Sweden, and is one of the world’s first crowdfunding platforms to provide both reward-based and equity crowdfunding Europe. To promote cross-border investments that support entrepreneurs and investors to help job creation and economic development, the platform has a significant focus on European entrepreneurs.
3. Funding Circle
This platform gives out loans of €5.000 to €250.000 to entrepreneurs. Funding Circle is an excellent platform to invest in if you have a project you’re confident about and start crowdfunding Europe. The best part is that the registration is free, and financial returns can get as high as 18.9% yearly. You can start investing with as little as €100.
Crowdcube is an equity crowdfunding platform in Europe aimed solely at investors who are sufficiently savvy to consider these risks and make their own investment choices. Via Crowdcube, over £ 26 million has been successfully invested so far.
Crowdcube launched the ‘Crowdcube Venture Fund’ in February 2014, which enables investors to crowdfund start-ups with the extra reassurance that an independent skilled fund manager invests, manages and tracks their capital. Companies like Crowdcube have made crowdfunding in Europe easier with their fantastic options.
Goteo is a crowdfunding or collective financing platform (monetary contributions) and distributed collaboration (services, infrastructures, microtasks) for projects that, in addition to giving individual rewards, also generate performance through promoting common goods, open-source and knowledge free.
You can have one or more roles as a network member: present a project, be a co-founder or collaborate on one. Goteo, one of the tremendous crowdfunding platforms, offers some excellent perspectives while crowdfunding in Europe.
Another great option among the top crowdfunding sites is Booomerang. It is the first and largest reward-based crowdfunding platform in Denmark. Entrepreneurs, musicians, groups and other artists can raise money from new and old networks through financial support. Booomerang is one of the largest crowdfunding platforms in Europe, which began four years ago.
Establishing an office in Berlin, Germany, by the end of 2014 and expanding quickly, the latest twist that separates Booomerang from other sites is a collaboration with crowdfunding. In Denmark, when legislation is in place that will turn Booomerang into a legitimate hybrid crowdfunding site, equity and lending platforms are in the works.
One of the pioneering crowdfunding platforms in Europe, Ulule allows creative, innovative and community-minded projects to test their idea, build a community and grow it—our goal: is to empower creators and entrepreneurs, in general.
How does it work? It’s simple: individuals, associations, and companies create your project, detailing its financial goal, duration, and non-financial rewards offered in exchange for support. If they reach their goal, they receive the funds collected and give their rewards to those who support them. If not, those who are supported receive a refund without any fee. Ulule takes a commission from funds transferred.
With many renowned business supporters, corporate finance professionals, and venture capital firms in its network, Companisto is one of the leading equity-based crowdfunding platforms in Europe. The platform offers many globally available payment methods, such as credit card payment, instant money transfer, and bank transfer (advance payment), so that investors can be global. Investors can invest upwards of €5 in innovative start-ups.
The platform has successfully funded 30 startups, invested almost €6 million, and is considered one of the best crowdfunding sites in Europe.
Another great option among the best crowdfunding websites is Seedrs. It is an international crowdfunding platform that helps entrepreneurs sell their company’s shares. This is an excellent way for medium to large companies to increase their capital. To start crowdfunding in Europe, you can invest from as little as €10 onwards via Seedrs.
All the top crowdfunding sites are committed to transparency and state which donations are needed and used. They report on the progress of the project through photos and video. While crowdfunding in Europe, Betterplace offers companies more reach through marketing campaigns, partner portals or additional donations from our business partners. Donors can also set up permanent contributions. This is why it made it to the best crowdfunding sites list.
Popular Crowdfunding FAQs
Which Crowdfunding Site Has The Lowest Fees?
Among all the great options above, WhyDonate has the lowest cost of all time regarding crowdfunding in Europe. They are crafted with careful strategies, WhyDonate charges only a minimum transaction fee of 1.9% + €0,25 for its fundraisers. At the same time, donors only pay the amount they prefer to donate and nothing more than that.
Is Crowdfunding A Good Idea?
Yes. The sole purpose of crowdfunding is to provide people with a platform to ask for funds to fulfil their absolute needs. However, finding a legitimate crowdfunding platform for any fundraising campaign is essential.
Which Type Of Crowdfunding Is Most Popular?
There are primarily four types of crowdfunding models that are popular globally. These are
- Donation-based crowdfunding
- Reward-based crowdfunding
- Equity crowdfunding
- Loan Crowdfunding