What are the best crowdfunding platforms in Canada in 2024?
Participatory financing, or crowdfunding, is an innovative way to raise funds for your company, product, content or non-profit project. Crowdfunding isn’t just a practical way of raising funds, it’s a movement. In 2023, crowdfunding added $1.1 billion to the US economy, with each crowdfunding campaign raising an average of nearly $8,000. So, what are your options for raising funds for your business via crowdfunding platforms in Canada? Let’s take a look at some of the best platforms to see which is best suited to your next campaign.
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Top 11 crowdfunding platforms in Canada
âś” Kickstarter : Crowdfunding platform specializing in a variety of projects
âś” Tiing : Crowdfunding platform specializing in participatory financing for all types of projects.
âś” Indiegogo : crowdfunding platform supporting businesses, artists and NPOs
âś” Fundable : crowdfunding platform ideal for small businesses
âś” Crowdfunder : platform for raising funds by offering rewards or shares in the company.
âś” Patreon : Ideal for content creators, offering regular fan funding for artists and content creators.
âś” Crowdcube : Crowdfunding platform dedicated to Canadian entrepreneurs
âś” GoFundMe : Renowned for raising funds for personal causes and charitable projects
âś” Mightycause : Crowdfunding platform dedicated to non-profit organizations
âś” CrowdStreet: Real estate crowdfunding platform
âś” StartEngine : Crowdfunding platform dedicated to raising funds for startups
Comparison of the 11 best crowdfunding platforms in Canada in 2024
1. Kickstarter
Kickstarter is one of the best-known crowdfunding platforms. Since its launch in 2009, the Kickstarter community has helped over 250,000 projects raise funds, including both physical and digital products.
2. Tiing
Born in 2019, Tiing is THE 100% Canadian and 100% Quebec crowdfunding platform! This is one of its key features. But let’s not forget two other notable facts:
- Tiing is the social financing platform with some of the lowest fees on the market.
- users can finance all kinds of projects: personal, charitable, artistic or professional events…
3. Indiegogo
Indiegogo is a crowdfunding platform that supports businesses, artists and non-profit organizations. It offers easy-to-use tools and a variety of campaign options.
4. Fundable
Fundable is ideal for small businesses. It offers a variety of financing options, including participatory financing in exchange for rewards or shares in the company.
5. Crowdfunder
Crowdfunder is a great option for Shopify stores. It enables companies to raise funds by offering rewards or shares in the company.
6. Patreon
Patreon is ideal for content creators. It enables artists and creators of all types of content to receive regular funding from their fans.
7. Crowdcube
Although based in the UK, Crowdcube is accessible to Canadian entrepreneurs. It is particularly useful for companies seeking equity financing in exchange for shares in the company.
8. GoFundMe
GoFundMe is a crowdfunding platform renowned for helping individuals raise funds for personal causes and charitable projects.
9. Mightycause
Mightycause is an excellent platform for non-profit organizations. It offers a variety of tools to help with fundraising, including customized fundraising pages and donor management tools.
10. CrowdStreet
For real estate investors, CrowdStreet offers a participatory financing platform dedicated to real estate investment.
11. StartEngine
StartEngine is a participatory financing platform dedicated to high-growth startups. It offers companies the opportunity to raise funds from both accredited and non-accredited investors.
What are the fees for the main crowdfunding platforms in Canada?
| Platform | Fees |
|---|---|
| Tiing | 1 per entry + 4% commission |
| La Ruche | 7% (plus taxes) if target achieved |
| Yoyomolo | 6.9% + $0.10 fee for donations of $20 or less |
| Ecloid | Approx. 10% if target achieved |
| Ulule | Between 6.67% and 4.17% if target achieved |
| Kickstarter | 5% if target achieved, plus 3-5% donation management |
| Indiegogo | All or nothing: approx. 8-10% if target achieved, Flexible: 8-10% even if target not achieved. Return of 5% if target achieved. |
| GoFundMe | 9.25% for charity projects, 6.7% to 7.9% for other projects |
What is crowdfunding?
Crowdfunding is a method of fundraising in which many people contribute their personal (or professional, in the case of start-up fundraising, for example) money to support a company, a cause or invest in real estate.
In exchange for funds, also known as “donations”, rewards can be offered to donors:
- Early access to purchase a product, possibly at a reduced price
- The option of pre-ordering a product and having a say in its development
- Exclusive rewards such as an ongoing discount, enhanced loyalty status, or free merchandise
- Access to the founding team or other crowdfunding contributors
- Shares in the company
- Exclusive content
The advantages of participatory financing for businesses
- Firstly, it offers an opportunity to raise funds without having to give up a significant stake in the company or take on substantial debt. This can be particularly useful for new businesses, which may find it difficult to obtain traditional financing.
- What’s more, funding platforms provide not only a source of financing, but also a marketing platform. Every fundraising campaign is an opportunity to make your company and your product known to a global audience. What’s more, contributors to crowdfunding campaigns are often enthusiastic and loyal customers, ready to share and promote your product.
- The best crowdfunding platforms also offer tools and resources to help entrepreneurs succeed. For example, many platforms offer guides and tutorials to help create a successful fundraising campaign, as well as tools to track and manage contributions.
- Last but not least, participatory financing can be an excellent way to test the market. By launching a fundraising campaign, you can get valuable feedback on your product before you officially launch it. This can help you fine-tune your product or market strategy, and avoid costly mistakes.
Factors to consider when choosing a crowdfunding platform
When it comes to choosing a crowdfunding platform, you need to determine what type of funding you’re looking for. Some platforms, such as Kickstarter and Indiegogo, are designed for reward-based crowdfunding, where contributors receive rewards in exchange for their contribution. Other platforms, such as Crowdfunder and CrowdStreet, are designed for real estate crowdfunding or participatory financing in exchange for company shares.
It’s also important to consider the fees associated with each crowdfunding platform. Most funding platforms charge fees based on the amount of money you raise, and these fees can vary considerably from platform to platform. So it’s important to understand the costs before choosing a platform.
Finally, you need to consider the size and commitment of each platform’s community. A platform with a large, active community can help promote your campaign and reach your funding target more quickly.
