Crowdfunding refers to a number of platforms in which many people and interests can provide and pool their funds, typically on the Internet, in support of a broad range of organizations and initiatives, including new business ventures and start-ups, research, artist support, political campaigns, and even disaster relief. Instead of large funding from one source, crowdfunding platforms enable larger numbers of people to support with smaller donations.
No longer being seen as a new fad, crowdfunding has become a highly effective way in which to get a business off its feet and has been used to support everything from celebrity projects to newly launched companies, providing the basis for great success with some businesses raising millions of dollars.
Entrepreneur just released its first “Top 100 Crowdfunded Companies” list, collaborating with the Crowdfunding Academy and Babson College to determine those businesses that raised the most money on crowdfunding platforms such as Kickstarter, Fundable, Indiegogo, and Selfstarter.
Entrepreneur’s Asheesh Advani, who is also the CEO of Covestor, developed the methodology to rank the companies in collaboration with Crowdfunding Academy and Babson College. Crowdfunding Academy researched a number of crowdfunding websites based in the United States to learn which companies in general business, technology, fashion, food, product design, and gaming raised the most capital in the one-year period from July 1, 2012 through June 30, 2013.
Certain initiatives—charity and cause-related campaigns, art and creative endeavors, and nonprofit community projects—were excluded for this list. Equity-based platforms provided the information concerning qualifying business financing. That information, when possible, was then verified by Crowdfunding Academy.
This first ever list saw gaming companies at the top. The top 10 of this first 100 are:
- The game console device, Ouya, by InXile Entertainment, was funded through Kickstarter, where the business was able to raise $8.6 million.
- Obsidian Entertainment raised $4.10 million for its Tides of Numenera computer game by seeking funding on the Kickstarter platform.
- The Project Eternity computer game by Reaper Miniatures received a $3.00 million boost of funding through Kickstarter.
- FormLabs raised $3.43 million for its Bones gaming miniatures by seeking funding through Kickstarter.
- Through Kickstarter, FormLabs raised $2.95 million for its Form 1 3-D printer device
- Tile raised $2.68 million on the Selfstarter funding platform for its lost-and-found location device.
- The Homestuck online game by MS Paint Adventures got its $2.40 million in funding through the Kickstarter platform.
- Oculus VR went through Kickstarter to raise $2.44 million for its Oculus Rift virtual reality set.
- WobbleWorks raised $2.34 million through Kickstarter for the 3Doodler, a 3-D printing pen.
- Apigy raised $2.28 million using the Selfstarter funding platform for its keyless entry app, Lockitron.
Karol, Gabrielle. “Top 10 Crowdfunded Companies in 2013“, Fox Business. October 31, 2013.
Advani, Asheesh. “Top 100 Crowdfunded Companies“, Entrepreneur. October 24, 2013.