English: Querys via Google for the word Crowdf...

English: Querys via Google for the word Crowdfunding (Photo credit: Wikipedia)

The quick answer is it depends – but let me elaborate so you can make your own mind up.

Do your research

Create an algorithm to appraise each platform’s success funding.

  1. Find projects in the same industry / type or funds required size as yours. Decide whether you are going for ‘travel’, gadget, consumer electronics etc and the bands of funding e.g. up to $1000, $1-5k; over $5k
  2. Trawl back through the archive for each of the 3 crowdfunding sites and make up a ‘scorecard’ for each one. Give 1 point for every project that closely matches yours on each of the attributes you listed above and give an extra 2 points if they achieved full funding within their allotted time. Note the shortfall ratio to funds asked and funds raised (Divide one by the other to get a number less than 1 and multiply the total score on other points by that.

This will give you a number on which to rank order each project on each site. You will quickly be able to see which has funded the most successful projects that closely match your own.

You can weight the algorithm by giving more points to the category that you favour e.g. if getting fully funded is more important than finding similar projects you can give more points to that.

Shortcomings of this model are if you have a project that is seeking a very large amount of money (there will be fewer projects to compare to) or one that doesn’t fit into a type category that matches others and so a comparison will be less valid.

How to fail at fundraising

I worked with a client recently who chose Sponsu.me as their platform and failed miserably… they’d made the choice without consulting us; they didn’t prepare, they didn’t promote and the platform was spectacularly poor at promoting to its own mailing list.

Equity participation with funding

On the other hand, in the UK there’s a platform called Seedrs which raises seed finance for enterprises allowing the funders to become equity participants in the businesses they support. Tom Ball cc above runs NearDesk – a local office sharing platform and community in the UK. He has succeeded in 2 rounds of fundraising on the site – here’s NearDesk’s latest funding round.

You have to be resident in the UK for tax purposes to participate in Seedrs.