Take advantage of the proliferation of crowdfunding sites to access one of the fastest, easiest, and most exciting ways to raise the type of capital most inventors need. This concept is based on people like yourself seeking an investment in your product or company from individual investors who each make small investments or contributions into a pool that funds your project.
This type of funding has been used even before the internet appeared. Did you know that funds for the Statue of Liberty came from a large group of donors? This method of fundraising has become very popular today.
Savvy inventors have learned that they can leverage this funding method not only to raise money but also to gauge interest in their product and, if they are really creative, they can even pre-sell their product before they've spent any money on development.
In this model, individuals will donate money towards a collaborative goal in return for products, perks or rewards. Entrepreneurs or inventors primarily use this model when launching a business concept. This allows them to raise money without the obligation of having to pay money back or give up equity or shares in the company.
The second model is called investment crowdfunding. Under this model, individuals donate money towards a collaborative goal, but instead of seeking products, perks or rewards, they seek ownership stakes in your company in the form of equity or debt.
You might be surprised to learn how many people regularly scan these sites in search of products to invest in. Each site typically draws a different audience. Visit and learn about each site so that you understand who is visiting and what they are seeking. For example, you will not have much success trying to sell your revolutionary kitchen gadget on a site that attracts investors looking for new T-shirt ideas.
Some of the most popular sites (in alphabetical order) are listed below. To get an up-to-date list of the top 10 sites click here.
Be sure to read the rules related to the site you choose. There may be fees involved. Some charge donors a percentage. Some will charge you a processing fee. Do your due diligence and become familiar with all the nuances.
Even more resources: Funding For Invention Ideas