If you are looking for recommendations, then we have the five best picks for you. If you need more guidance on this, feel free to talk to a tax accountant in the UK, for example – Tax Advisor UK. Their team is very resourceful.
Now let’s get right to the top crowdfunding sites in the UK for your small business.
Crowdfunder
This is a reputable rewards-based crowdfunding site that offers all the help entrepreneurs need by connecting them with the right investors. It is a platform where you can get innovative ideas to build all kinds of projects. This crowdfunding site is about equity and cause-based crowdfunding. A huge advantage of using Crowdfunder is that they have the Extra Funding feature. The platform connects your campaigns with businesses that have funds to support certain projects and causes.
For charity donations, Crowdfunder does not charge a platform fee. Likewise for personal causes and charity fundraisers, e.g., COVID-19 related projects. Reward-based campaigns have a platform fee of about 3%.
JustGiving
This is a cause-based fundraiser platform, offering help to people raise money for personal or charity causes. It launched in 2000 and has helped people raise as much as £4.5 billion for 20,000 charities and other organizations across 164 countries. Campaign managers do not pay any platform fee for donations. You simply pay a 1.9% transaction fee and a £20 processing fee. For gift processing, there is a fee of 5%. Aside from these charges, you keep all the raised funds even if you do not meet your campaign targets.
GoFundMe
This platform is also a cause-based crowdfunding platform. It has raised £5 billion for medical and social causes. The site is open to both charities and individuals who want to do good for their communities. There are no setup charges. You only pay $0.30 + 2.9% of the donation amount. If you do not meet your campaign targets, you still get to keep the funds raised.
Kickstarter
This crowdfunding platform launched in 2009 and is one of the largest crowdfunding sites that is rewards-based, in the UK. Its mission is to help people “bring their creativity to life.”
For their support, the backers of this platform receive whatever your campaign creates. Therefore; Kickstarter is very popular among aspiring eCommerce merchants and creatives. Since its launch, this platform has helped with launching projects like the De La Soul hip-hop group, children’s books, and Craighill’s innovatively designed products. If your campaign is successful, then Kickstarter takes 5% of your total funding as a fee. In addition, processing payment has a fee of 3-5%. If you integrate your campaign with Easyship, you can save 70% off the shipping charges.
Crowdcube
This is also one of the best and first equity-based crowdfundig platforms in the world. At every stage, you can pitch your campaign to a global audience for funding online. In exchange for the funds you raise, Crowdcube gets a stake in the company, i.e., in the form of equity. So far, this platform has raised $1 billion. Crowdcube is open to every investor and newbies. Listing here is free, you pay 7% of raised funds to this platform. There is a processing fee of $0.75-$1.25.
For more advice, feel free to talk to a Tax Advisor UK.
