Crowdfunding is a way of funding projects through contributions from many people who believe in the idea and want to support it financially.
This approach has become especially popular among startups, nonprofits, and creative initiatives. It not only helps raise money but also allows creators to gauge audience interest, receive feedback, and build a community of supporters. Crowdfunding can bring projects to life that might otherwise remain just an idea.
The concept of raising funds for a project is not new. In medieval times, some publishers used advance orders—similar to modern pre-orders—to finance book printing, and musicians often relied on patrons to fund new works. Modern crowdfunding emerged with the rise of the Internet. In 1997, the British rock band Marillion raised $60,000 from fans online to finance a tour. In 2000, the first dedicated crowdfunding platform for musicians, ArtistShare, was launched.
Main Crowdfunding Models:
- Donation-based crowdfunding — Voluntary contributions made without expecting any material benefit. Most often used for social, charitable, or community initiatives.
- Reward-based crowdfunding — Contributors receive a non-monetary reward, such as a product, service, or exclusive content created with the collected funds. Common in creative and tech projects.
- Pre-order crowdfunding — Works like a pre-order: supporters finance the creation of a product or service they will later receive. This helps creators cover production costs.
- Lending-based crowdfunding — Funding is provided as a loan, later repaid with interest. An alternative to bank loans for businesses.
- Equity crowdfunding — Investors receive a share in the company they fund, similar to venture capital.
- Hybrid models — Some platforms combine several types of crowdfunding, allowing projects to tailor their funding approach to their needs.
Leading Crowdfunding Platforms Worldwide
- Kickstarter (USA, 2009) — One of the largest platforms for creative, tech, and entrepreneurial projects.
- Indiegogo (USA, 2008) — Supports both startups and social initiatives; offers flexible funding options.
- GoFundMe (USA, 2010) — Popular for charitable and community-based fundraising.
- Patreon (USA, 2013) — Focused on creators (artists, musicians, bloggers), enabling regular support from subscribers.
- Crowdfunder (UK, 2012) — Specializes in social, environmental, and community initiatives.
Ukrainian Platforms
- Spylnokosht (Big Idea) — A leading Ukrainian platform for cultural, social, and community projects.
- RazomGO — Supports startups, business ideas, and creative initiatives.
- Na-Starte — Focuses on Ukrainian entrepreneurs, artists, and tech startups.
- Meeple — Specializes in board games and other entertainment projects.
- Ukrainian Philanthropic Marketplace — A charitable platform raising funds for social and humanitarian causes.
