How Web3 Crowdfunding Platforms Are Changing the Game for Creators and Investors

If you are a creator or an entrepreneur with a great idea for a Web3 project, you might be wondering how to raise funds for it. You might have heard that getting VC investment is not easy, especially in the current market conditions.

Despite these challenges and bear Crypto market, there are still some VCs who are investing in Web3 projects. Even so, the report shows that most of the VC funding goes to a few established sectors, such as DeFi (decentralized finance), NFTs (non-fungible tokens), and DAOs (decentralized autonomous organizations). This means that if your project falls outside of these categories, or if it is too innovative or experimental, you might have a harder time attracting VC attention.

So, what are your options if you want to raise funds for your web3 project and and don't meet VC startup criteria? One approach is to use web3 crowdfunding platforms. These platforms offer several benefits over traditional crowdfunding platforms, such as:

• Transparency: Web3 crowdfunding platforms use blockchain technology to record and verify every transaction, ensuring that donors and investors can see where their money goes and how it is used. This transparency can build trust and accountability among all parties involved.

• Security: Blockchain technology is secure and tamper-proof.

• Efficiency: Web3 crowdfunding platforms use smart contracts to automate the fundraising process, reducing the need for manual verification, paperwork, or intermediaries. This can lower the costs and risks of fundraising, as well as speed up the delivery of funds and rewards.

• Community building: Web3 crowdfunding platforms can help creators build a community of supporters around their project. This can be a valuable asset for creators, as it can help them to promote their project and get feedback from the community.

How do Web3 crowdfunding platforms work?

At the heart of Web3 crowdfunding are digital assets known as tokens. These tokens represent ownership, participation, and potential future value in a project. Entrepreneurs can tokenize their projects, allowing backers to invest directly and hold tokens that mirror their contribution. . It's not just about funding; it's about forming a digital community of believers who are vested in the project's success.

Backer Engagement: From Supporter to Stakeholder

Web3 crowdfunding platforms redefine the relationship between creators and backers. Backers are no longer passive contributors; they become active participants in the project's journey. Beyond financial support, backers are rewarded with tokens that grant them access to project updates, voting rights on key decisions, and even a share of future profits.

This transformational shift in engagement fosters a sense of community and collaboration. Backers are invested not just financially, but emotionally, forging a connection that transcends geographical boundaries. Creators, in turn, benefit from a pool of engaged backers who provide feedback, ideas, and ongoing support, enhancing the project's chances of success.

##The Top 5 Web3 Crowdfunding Platforms
There are many Web3 crowdfunding platforms emerging in the market, each with its own features, advantages, and challenges. Here are some of the most notable ones:

1. Gitcoin

Gitcoin is the most popular platform for funding web3 projects. Projects are funded by a combination of donations and bounties. Donations are made in cryptocurrency, and bounties are awarded to developers who complete specific tasks. Gitcoin Rounds typically last for a week or two and cover projects related to Open Source, Ethereum Infrastructure, Climate solutions, Web3 Social.
In the most recent round held in August, 47,513 donors participated, donating a total of $679,981 to several hundred projects. Our project Eppie has received support from 416 contributors.

2. Coinlist

CoinList is a leading cryptocurrency exchange and launchpad that offers users a safe and reliable way to invest in and trade new and emerging digital assets. It is one of the most popular and well-respected crypto exchanges in the world, and has a reputation for listing high-quality projects. It provides a platform for blockchain projects to raise capital through initial coin offerings (ICOs) and token sales. Great choice for token- or cryptocurrency-related projects, but not suitable for all others.

3. WeFunder

Wefunder is a crowdfunding platform that allows anyone to invest in startups for as little as $100. It is often referred to as "Kickstarter for investing" because it allows startups to raise money from a large number of small investors. Unlike Kickstarter, Wefunder is not a rewards-based crowdfunding platform. Instead, investors are buying equity in the startups they invest in. This means that if the startup succeeds, investors have the potential to make a profit. However, if the startup fails, investors could lose all of their investment. Here, you can find not only Web3 projects but also VR, AI, Healthcare, Biotech, Ecommerce, and others.

4. Republic

Republic.com is a platform that allows users to invest in early-stage blockchain projects.

5. Kickstarter

Perhaps the most famous crowdfunding platform in the world announced plans to create an open source protocol “that will essentially create a decentralized version of Kickstarter’s core functionality.” The company says the goal is for multiple platforms to embrace the protocol, including, eventually, Kickstarter.com.

Web3 crowdfunding platforms have the potential to revolutionize the way that projects are funded, making it easier for entrepreneurs to raise capital and giving backers a more meaningful role in the projects they support.

We are a team of developers from Estonia. We are building Eppie — a decentralized email with full account and identity ownership. It’s getting close to Beta and we are looking for more tech enthusiasts to join the test. If you are interested in Web3, please check out our landing and subscribe — it will be a tremendous help for us and, hopefully, a worthwhile experience for you. Thank you!