When it comes to the 5 Top Crowdfunding Websites Australia 2024, it must be noted that across the last two decades, crowdfunding has gone from being a resource used by fringe groups and hippies to being a legitimate source of funding for any business, cause or idea.
If you are an Australian entrepreneur looking to fund your great business idea, then you absolutely must look into these Crowdfunding Websites in Australia.
In this article we share the 5 Top Crowdfunding Websites Australia 2024:
- What is Crowdfunding?
- History of Crowdfunding
- Types of Crowdfunding
- Crowdfunding FAQ
- Fixed vs Flexible Crowdfunding
- Crowdfunding in Numbers
Our top 5 Picks for Crowdfunding Websites in Australia
- Which Crowdfunding Website We Think is Best!
- Benefits of Crowdfunding for Business Ideas
- How to Choose the Right Crowdfunding Website
- Future of Crowdfunding Websites
- Success Checklist
- Final Word on Crowdfunding your Business Idea
What is Crowdfunding?
- Crowdfunding can be described as raising small amounts of funding from a large spectrum of investors (funders/backers), typically online, via a crowdfunding website, website or mobile App.
- Crowdfunding offers individuals, communities and organisations the potential means to raise funds for a wide variety of causes.
- Personal crowdfunding relies on friends, families and the local community to raise funds often for charity related causes or initiatives.
- Business crowdfunding often offers a stake or equity in the business or exclusive early access to products or services.
History of Crowdfunding
One of the earliest recorded applications of online crowdfunding was in 1997, when the British rock band Marillion raised USD 60,000 in donations from its fans to support a tour of the USA.
This is widely accepted as the world’s first commercial crowdfunding online website (2001) that allowed members of the general public to directly support and finance their favourite artists in return for exclusive access and a variety of other special benefits.
“In 2005, American composer Maria Schneider’s Concert in the Garden became the first album in Grammy history to win an award without being available in retail stores. The album was ArtistShare’s first fan-funded project. Schneider received four nominations that year for the fan-funded album and won the Grammy for Best Large Jazz Ensemble Album.”ArtistShare
The biggest single crowdfunding initiative by an individual was undertaken by Sir Captain Tom Moore who raised over GBP 38 million through the JustGiving crowdfunding platform, with the participation of over 1.5 million backers.
Types of Crowdfunding
|Equity Crowdfunding||Donation Crowdfunding|
|This is one of the most typical types of crowdfunding when investors are offered equity or a stake in the business so the product or service can grow further.*||If you are a charity or have a special incentivised target to reach and appeal for donations that need not be paid back. Often used for medical needs fundraising.|
|Debt Crowdfunding||Reward Crowdfunding|
|Similar to a business loan arrangement, this is when business owners borrow money from investors with a set annual percentage rate.||This is when especially early investors of a product or service are rewarded with exclusive previews, advance purchase access or other value-added benefits such as subscriptions.|
*Some crowdfunding campaigns offer Early-stage Securities when early backers can access low priced equity or shares in startup companies allowing them to benefit later on if the company’s product or service proves successful. However, if it is unsuccessful then it is also possible to lose out.
What are the first steps?
Having agreed on what product/service or charitable cause requires funding, users can select their preferred crowdfunding website and create a profile.
Having logged in users can then proceed to launch their own crowdfunding campaign page with a target amount, descriptions, images and a deadline.
How do crowdfunding websites work?
Crowdfunding websites host numerous crowdfunding campaign pages and handle all aspects of payments made, accepting a wide range of different currencies and formats, often on a commission basis.
What if I just want to see if anyone is interested?
Some users adopt a Waitlist Approach where they first publicise their crowdfunding product/service or charity idea to see what interest is out there before opening the campaign for backers.
Why is my crowdfunding campaign page so important?
Many users leverage the crowdfunding campaign page to tell the story, history and background of their particular product/service or charitable cause, often making it emotionally appealing to others, who may be inspired to donate.
Here is a great example of a Crowdfunding Campaign Page for a Small Business Idea
Will I have to prove my reason for crowdfunding?
Most websites will review and verify your crowdfunding campaign page to ensure your goals are legitimate and abide by the relevant website’s guidelines.
How do I tell others about my crowdfunding campaign?
Campaign creators are encouraged to promote their crowdfunding campaign page utilizing a wide range of mediums such as social media. Many websites already make it easy to share and get the word out with in-built promotional tools.
How will I collect any raised funds?
When your crowdfunding campaign ends, the raised funds are directly deposited into a nominated bank account, less any website or payment processing fees, as applicable.
This transparency ensures all backers know exactly the status of their donation or investment.
Please note that you must use the money you raised for the exact purpose or objectives you have mentioned on your crowdfunding campaign page.
Can I Build My Own Crowdfunding Website?
It is possible to build your very own crowdfunding website however this may involve significant costs in terms of development.
In addition to developing the platform and related website and Mobile App, you must also ensure that payments are accepted in a secure manner ensuring transparency and the safety of user data.
Fixed vs Flexible Crowdfunding
When it comes to devising a crowdfunding strategy, it is important to note the campaign objectives and required outcomes and choose a crowdfunding solution that best works for you.
|Fixed Crowdfunding||Flexible Crowdfunding|
|All or Nothing Campaigns only release or disburse funds when the target or goal has been completely achieved.||Keep it All Campaigns allow for any amount raised as of the deadline to be released or disbursed.|
|Suitable for Equity and Debt Crowdfunding Campaigns||Suitable for Donation and Reward Crowdfunding Campaigns|
Crowdfunding in Numbers
5 Top Crowdfunding Websites Australia 2021
Now that you have a better understanding of Crowdfunding, check out these 5 Top Crowdfunding Websites Australia 2021:
Established in 2009, mycause is a 100% Australian owned and operated online fundraising and crowdfunding Website.
With over 6000 charity partners, mycause has raised over AU$ 140 million across over 240,000 individual crowdfunding campaigns supported by over one million donors.
Fees: 0% Website Fees for investors
- Invites all kinds of causes from personal and project based to charity based
- 0% Platform Fees for personal causes
- Available in Australia Only
Since 2007 Gofundraise has worked with over 2000 Australian charities to connect people to causes they care about.
Fees: 0% Fees for investors with different licensing and pricing structures with separate benefits for those conducting the fundraising.
- A platform especially for charities
- On average over 92% of the funds go directly to the cause.
- Only for not-for-profit Australian charities
- No campaigns for personal causes
- A commission charged on all donations
Dating back to 2010, Pozible is 100% Australian owned and has raised over USD 100 million across over 15,000 crowdfunding campaigns.
Fees: Pozible has a varied fee structure depending on the country of the proposed crowdfunding campaign.
- Extended customer service with specialised handbooks
- Options to customise your crowdfunding campaign page with widgets, add-ons and other Apps
- Pozible is a success-based website that means its fees are only applicable on the successful completion of a campaign
- Donors must login to donate
- Available in Australia and a handful of Asian Markets Only
In 2018 Equitise was one of the first websites to receive an Australian retail crowdfunding license.
Since then, Equitise which specialises in equity crowdfunding, has raised over AU$ 39 million, across 38 crowdfunding campaigns.
Fees: Equitise is free for investors and if your campaign is successful, Equitise charges a commission of the total funds raised, starting at 4%
- Specialist in Equity Crowdfunding, Wholesale Investment and Initial Public Offerings (IPO)
- Highly Vetted investment opportunities
- Companies have to stump up an upfront fee, to cover the cost of marketing and creation of the offer document
- Not suitable for Donation or Reward Crowdfunding
VentureCrowd commenced operations in 2013 and by 2015 it had completed the largest Australian equity crowdfunding campaign, raising over USD 4 million for Ingogo, a taxi booking and payment software solution.
As of 2021, VentureCrowd has raised over USD 150 million, across 67 crowdfunding campaigns spanning retail, wholesale and real estate investment opportunities, attracting over 63,000 investors.
Fees: VentureCrowd offers 0% transaction fees with a 20% performance fee on exit for investors. If your campaign is successful, VentureCrowd charges a 6% commission of the total funds (capital) raised.
- Diverse Investment opportunities appealing to multiple audiences
- Companies have to provide a financial allocation as a campaign fee (to cover the cost of marketing and promotion)
Which Crowdfunding Website We Think is Best!
For Donation or Reward crowdfunding campaigns we recommend myCause given its low fee structure.
For Equity or Debt Crowdfunding we recommend Equitise for its past performance in delivering high-value crowdfunding campaigns.
The Best Crowdfunding Website will always be the one that appeals to and convinces the most potential donors, investors or backers around the world!
Benefits of Crowdfunding for Business Ideas
- Opportunity for companies to promote and publicise their products and services
- Backers can become early adopters of an innovative product or service along with exclusive early access, pre-order or special incentives
- Companies can validate demand for their ideas or products during the early stages through pre orders
- The Chance for backers to have a say and provide feedback in the development of the product or service. Content creators can also engage subscriptions from audiences who like what they see.
- Crowdfunding websites make it easy to attract investments or backing from the whole world using a wide selection of payment methods including Bitcoin
How to Choose the Right Crowdfunding Website
When it comes to choosing the right Crowdfunding Website it is important to consider the following essentials:
- Credibility and Security – Is the website established and recognised? Does it offer secure payments?
- Accessibility – Is the website accessible via both website and mobile App?
- Functionality and Responsiveness – Does the website and mobile App function well and are they responsive across a range of devices?
- Levels of Customer Support – If there are any problems or issues what kind of customer support does the website offer?
- Publicise your Crowdfunding Campaign – How easy is it to promote your crowdfunding campaign using the tools provided by the website. Does it make it easy to share campaign details across social media networks and email?
- Fee Structure – If your crowdfunding campaign is successful what website fees or payment processing fees will be charged?
Future of Crowdfunding Websites
In an increasingly digitised world, crowdfunding websites will continue to play an important role in raising funds and awareness about a range of topics and interests.
With greater mobility, the demand for crowdfunding websites to be presented as Mobile Apps is sure to increase.
From funding lifesaving emergency medical procedures or collecting money for disaster relief, to providing much-needed capital for business ideas to become reality, crowdfunding websites are very much part of the social and entrepreneurial ecosystem.
- Decide on the Type of crowdfunding
- Set a realistic target/goal
- Carefully choose a crowdfunding website that suits your requirements
- Promote your crowdfunding campaign far and wide
- Aim for your target/goal aggressively
Final Word on Crowdfunding your Business Idea
The 5 Top Crowdfunding Websites Australia 2021 offers those with a cause or those with new ideas and a specific vision, the opportunity to engage with a group of individuals or a crowd who collectively invest in your idea and support and help to make it a reality.
Crowdfunding websites Australia empower ordinary citizens to invest in disruptive and innovative high-growth start-ups often at an early stage.
If you have a Mobile App Idea and are considering any of these Crowdfunding Websites, make sure to choose an Affordable and Experienced Mobile App Developer to leverage the maximum potential of your Mobile App Idea.