Crowdfunding Sites Are Springing Up Like Dandelions

The following is a repost of an article that appeared on the San Francisco Chronicle, as provided by Julie Bort

Monday, April 2, 2012

On Thursday, President Obama is scheduled to sign the JOBS Act which makes it easier to raise funds online. (Although not as easy as the original bill would've made it.)

Every day we hear from yet another crowdfunding site crowing about the situation.

Most of them were alive and well before the JOBS Act and they built their sites with the previous legal restrictions in mind. Project owners couldn't sell pieces of their company or pay back the money.  Instead they gave away rewards for different levels of investing like copies of the product, limited editions or weird things, like dinner with the inventors.

But a few new sites are in the works that will let investors get a financial return for their money.

All told, we know of seven sites to help you raise seed money online:

• Crowdfunder: A new site in beta that will take advantage of the new law. Although it's not open for business yet, its founders claim it has 1,121 investors ready to spend $15.44 million on projects. It says 1,055 companies already lined up to grab those funds.

• Wefunder -- Another new crowdfunding site in beta. It claims the site already has 3,649 funders who will invest $8,972,400 in startups.

• Funding Launch Pad: This site, also in beta, has a different angle. It will be geared towards Colorado companies. Boulder, CO, has become a regional hotspot for startups, so why not a crowdfunding site that focuses on them?

• Rock The Post:  A free network that helps entrepreneurs meet professionals and investors who can help turn their ideas into successful projects by offering funds, time or materials. (Named among The Hottest 10 Startups To Watch In NYC This Year)

• Indiegogo: This site specializes in creative ventures, like movies, music, theater, fashion, even sports. But its got its share of products and tech, too.

• AngelList: This site doesn't do the actual crowdfunding, but it helps a startup get discovered by angel investors.  Hopefuls post info about their company and the angels call them.

• Kickstarter: The granddaddy of crowdfunding sites. So far in 2012, two projects have raised over $1 million on Kickstarter. Several others have surpassed $250,000. (Here's a list).

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