An innovative new source of funding to sweep across the Internet in droves is crowdfunding. The majority people are not aware of the newest trend on the Internet called crowdfunding, but it is becoming the Internet’s #1 newest billion-dollar business, and one of the biggest trends for raising funds for your dream project. Thanks to social networks and the Internet, it allows individuals to support virtually any project or start-up business, reaching into double digit billions, and it is just getting started.

Crowdfunding has become the cutting-edge way of raising the much-needed money required by businesses to sustain, where a group of investors are willing to share their resources to support endeavors initiated by individuals or organizations. Anyone can take advantage of crowdfunding; from political campaigns; service or product based businesses; artist; scientific researchers to software development.

Crowdfunding Sites

There are many crowdfunding platforms available with new ones forming daily. However, It is important to choose the one that can best fit your project funding needs.

The concept of crowdfunding site is simple; you post your project to a large group of site users who are usually potential investors, and they will fund your project if they find it interesting. You can start crowdfunding for free as you won’t be charged until and unless your project has raised some funs or the full amount. There is nothing to lose, and moreover, you also gain free publicity.

Go Fund Me: Go Fund Me is the World’s #1 personal fundraising website. San Diego-based Go Fund Me was launched on May 10, 2010 and has quickly become the World’s #1 fundraising site for personal causes and life-events. Hundreds of thousands of people have raised over $1.25 Billion from 13M donors for the things that matter to them most. While it’s free to launch your campaign, fees are deducted from each donation.

Fees: The site will charge your donors up to 15% and you’ll still need to pay 3% for processing.

Indiegogo: As the largest global site for fundraisers, Indiegogo helps individuals, groups and non-profits raise money online to make their ideas a reality through crowdfunding. Its an international crowdfunding site where anyone can raise money for film, music, art, charity, small businesses, gaming, theater, and more.

Indiegogo is a way for people all over the world to join forces to make ideas happen. Since 2008, millions of contributors have empowered hundreds of thousands of inventors, musicians, do-gooders, filmmakers—and other game-changers—to bring big dreams to life. 224 Countries and territories are home to Indiegogo campaigns and 15 Million people From all over the world visit the site each month.

Fees: It is free to sign up, to create a campaign, and to contribute to a campaign. When your campaign raises funds, Indiegogo charges a 5.0% fee on the funds you raise.

Kickstarter: Kickstarter is changing how millions of people around the world connect with art. Kickstarter is a funding platform for creative projects. Everything from films, games, and music to art, design, and technology. Kickstarter is full of ambitious, innovative, and imaginative projects that are brought to life through the direct support of people like you. Since the launch of site on April 28, 2009, over $1.5 billion has been pledged by more than 8 million people, funding more than 80,000 creative projects.

The majority of initial funding usually comes from the fans and friends of each project. If they like it, they’ll spread the word to their friends, and so on. Press, blogs, Twitter, Facebook, and Kickstarter itself are also big sources of traffic and pledges. Altogether, millions of people visit Kickstarter every week.

Fees: If your project is successfully funded, the fees will be collected from your funding total: Kickstarter’s 5% fee, and payment processing fees (between 3% and 5%). If funding isn’t successful, there are no fees.

Rocket Hub: Rocket Hub is the fundraising platform helps to raise funds and awareness for projects primarily in fashion, music, theater, writing, and photography. If your are artists, musicians, entrepreneurs, scientists, game developers, philanthropists, filmmakers, photographers, theater producers/directors, writers, fashion designers, you can post your project to Rocket Hub community.

Fees: When you reach your goals: 4% commission fee + 4% credit card handling fee. Don’t reach your goals: 8% commission fee + 4% credit card handling fee.

CrowdFunder: Crowdfunder is a powerful way to help you structure your investment offering, tell your story, get new investors, and close your round. The site provide powerful marketing and engagement tools that are helping entrepreneurs raise money everyday online. Crowdfunder is the leading equity crowdfunding platform with the mission of bringing capital to early-stage companies while giving investors access to top deal-flow.

Fees: They charge a flat monthly fee starting at $299 to allow entrepreneurs to use the money they raise for their business.

In conclusion, businesses can gain a lot by taking in the benefits of crowdfunding. It is a unique way of raising capital for businesses and can very much impact positively on the success of a start-up making them more vibrant and competitive.