List of the best Donation crowdfunding platforms
Delve into the list of Donation crowdfunding platforms based in Europe and the UK to see what the international market currently offers and to choose your next crowdfunding provider.
Handy and concise profiles below will help you understand if there are Donation crowdfunding companies that may be of interest to you. If so, don’t hesitate to drop them a line and visit websites to get acquainted.
Check out the filters to save time and immediately find the Donation crowdfunding platforms that match your criteria.
Donation crowdfunding platforms operate in 25 and focus on Real estate, Startups, SME, Sustainability, Litigation, Green energy, Health & Science, Logistics, Personal loans, Art, Social cause, Education, Farming, Sport and Maritime providing different investment opportunities for retail and accredited investors. The biggest number of Donation crowdfunding platforms operate in Andorra, Albania, Austria, Croatia, Denmark, Finland, France, Germany, Greece, Italy, Latvia, Liechtenstein, Luxembourg, Macedonia, Malta, Moldova, Monaco, Netherlands, Norway, Portugal, Turkey, Serbia, Switzerland, United Kingdom, Ukraine.
The minimum investment amount varies from platform to platform. On this listing, you will find crowdfunding platforms that offer investment opportunities starting at € with a maximum investment amount of 10000€.
As a crowdfunding platform directory, we verify the most active crowdfunding platforms if they reach out and claim their profile. On this listing, 9 crowdfunding platforms claimed their profile.
Fun fact: among all the crowdfunding platforms listed here, the oldest has been founded in 1972 and the youngest in 2022.
Things to consider when choosing a Donation crowdfunding platform
Once you’ve decided on the crowdfunding business model for your investing or fundraising purposes, it may seem like the major research part is done. It’s surely a significant one, but there is still more work to do. Here are some fundamental factors to consider while proceeding with your investment journey.
The next logical step is to get straight to the platform research to see the existing options. Once you browse the list of Donation crowdfunding platforms, the first thing to ensure is their regulator compliance. In other words, if these Donation crowdfunding sites adhere to the country’s current legislation.
For instance, all Europe-based companies must have or be in the process of obtaining an ECSP licence.
Then research crowdfunding providers’ history and customers’ experience, to choose the best crowdfunding resource for your goals. The key metrics to review are:
- How long has the platform been operating, and how much has it accumulated? Top companies usually have been present on the market for at least three years and have reached €1M in funding.
- What are the clients’ reviews? If there have been negative reviews or defaults, what actions did the platform take?
- Have they reimbursed investors?
- Who’s the platform’s leadership, and what’s their background? Ideally, they have previous experience in banking or investing.
Finally, ensure that the fees and commission structure is clear to you.
Is Donation investing worth it?
It may be a good choice for investors willing to diversify their portfolio and yield higher returns but who are ready to take on higher risks.
It is also a chance to access loans and niches that were previously available only to institutionalised investors or high-net individuals.
While crowdfunding offers more lucrative and diverse opportunities, it’s fairly considered a high-risk investment. So, you need to be well-aware of the risks involved and well-prepared, if you feel ready to take them. The more you get familiar with the processes involved, the more you realise if your expectations are aligned with the possible risks and outcomes.
How to avoid the risks associated with Donation investing?
There is no way to avoid them completely, however, there are definitely some tools to minimise them. Apart from the basic platform’s security check highlighted above, here is what you can do:
- First and foremost, diversify across loans, platforms, and investment types. Should any loan default, it won’t dramatically impact your portfolio’s general stability, and you won’t lose your entire investment.
- Select Donation crowdfunding websites with buyback guarantees. In a nutshell, it’s the platform’s commitment to repay the funds invested if the loan goes bankrupt within 90 days or so.
- Cross-check the platform’s reputation: see if the leadership is present on social media and how actively they talk about their platforms’ activity. It shows how willing they are to contribute to the general sense of trust and transparency.
- If you have any questions, reach out to support to check out their response speed and quality. It’ll give an overall understanding of how the company treats its clients.
- Always start with small investments if the crowdfunding niche or Donation platform is new to you.
Frequently Asked Questions about Donation crowdfunding
What are the advantages of investing on crowdfunding platforms for Donation?
Investors who prefer this investing alternative can potentially enjoy the following benefits.
Firstly, it’s an opportunity to yield higher returns compared to other, more traditional investment methods. If an investment strategy turns out successful, one can build a steady and more generous passive income.
Secondly, this crowdfunding type offers diverse loans that used to be accessible only to accredited investors, which can help solidify one’s portfolio and tap into new business opportunities.
Finally, it’s a chance to help grow a business offering a product or a service that interests you as a potential client. By contributing to its launch or expansion, an investor also indirectly benefits the community or an industry niche.
As attractive as these benefits may look, it’s crucial to remember that when investing through crowdfunding, you are also exposed to a potentially higher risk.
Can I lose my money on Donation crowdfunding?
Yes, you can.
To avoid that, ensure the platform has a specific scenario developed for such cases. Do research if such situations have already occurred and if investors got their money back.
Best of all, trust websites with buyback guarantees or similar fund recovery measures.
How much money do I need to start investing?
The initial investment amount varies a lot depending on the platform. But the truth is that the majority allow investing starting with €100. You can even find platforms where you can participate in loans with as little as €10.
The low entry threshold allows inexperienced investors to kick off their investing activities. While it’s undoubtedly one of Donation crowdfunding massive advantages, please always remember to start small and diversify.
Can I give up a crowdfunding loan or exit it earlier?
Yes, if you invest in Donation crowdfunding companies with a secondary market.
Is Donation crowdfunding good for funding a startup?
It can be. Many startups have already received their funding through crowdfunding. Instead of relying on a single individual or an organisation to get the money, you increase your chances of hitting the necessary sum by inviting more individual investors to participate.
However, to achieve that, you need to make your campaign look promising and stand out. The business plan and the legal docs need to be in order, the presentation should be creative and catchy, and the marketing strategy well-thought.
As the crowdfunding industry grows, more niches emerge, and startup/business funding is no exception. These days you can find crowdfunding platforms specialising in it.