If you have an idea for a creative business or side project but don’t have the cash to fully invest in it, crowdfunding through Kickstarter might be able to help. Kickstarter is a popular platform that individuals use to fundraise money. Large pools of supporters donate small amounts of money to their campaign, and creators don’t need to pay the money back.

Read on for a deeper review of Kickstarter.

Kickstarter

  • Cost

    5% of total funds raised; payment processing fee of 3% + $0.30 per pledge

  • Standout features

    Project categories are quite diverse and range from arts and crafts, design, dance, music, publishing, technology and more. Business owners and creators launch a project and set a funding goal with a deadline. You’ll only be charged if you reach your funding goal by that deadline.

Find the right business checking account to help manage and grow your company

Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.

Annual Percentage Yield (APY)

1.00% APY on balances of $0.01—$24,999.99 and $250,000.01; up to 1.35% APY on balances of $25,000-$250,000

How does Kickstarter work?

Kickstarter lets individuals crowdfund money for projects that can span arts and crafts, film, photography, tech, publishing and more. Creators set a funding goal for their project and a deadline by which the funds should be raised.

Individuals “pledge” small amounts of money to help creators reach their fundraising goal for their project.

According to Kickstarter’s website, funding is all-or-nothing, which means that creators won’t receive the funds they raise if they don’t reach their goal. Also, pledgers are only charged if creators reach their fundraising goal.

Pledges don’t receive equity in any ventures run by the creators they back. However, creators may offer rewards to show their appreciation. Rewards may be free merchandise, exclusive discounts, a copy of the work produced by the project and more.

Creators can set deadlines of up to 60 days, but Kickstarter’s website says that they usually see 30-day fundraising windows work best. You’re locked into the fundraising goal and deadline once your campaign is live and can’t change either. Campaigns also can’t be paused, but if you need to stop it for any reason, you can cancel the campaign and relaunch later.

Kickstarter campaigns cannot be created to donate money to charity or to pay yourself. However, you may factor a fair salary for yourself into the project’s fundraising goal.

CNBC Select previously spoke with Dr. Jenny Woo of Mind Brain Emotion, who used Kickstarter to raise money for a business venture. Read some of Dr. Woo’s insights on launching a business in our article.

Pricing

Kickstarter takes a 5% fee deducted from your funds if your campaign reaches its goal. Pledges get charged a processing fee of 3% + $0.30 per pledge.

If you don’t reach your goal, no fees will be taken.

Pros and cons

Consider these pros and cons if you’re having trouble deciding if Kickstarter is the right way to raise cash for your next project or business venture.

Pros

  • Free to sign up and launch a project (Kickstarter takes a 5% fee if you meet your fundraising goal)
  • Wide range of project categories supported
  • Offers resources/crowdfunding tips
  • Offers opportunities for your project to be backed by large organizations and institutions
  • Your project gets in front of a large online audience, especially if chosen to be highlighted on Projects We Love

Cons

  • You don’t get to keep raised funds if you don’t reach your goal
  • In many cases, Kickstarter funds are considered taxable income
  • Not every campaign can be featured on Projects We Love

Kickstarter alternatives

Kickstarter can be a solid way to raise money for a creative or business project if you don’t have enough personal savings and don’t want to take on debt to fund it. You won’t pay anything upfront to set up a campaign as a creator, but you will have 5% deducted from your proceeds if you reach your fundraising goal, and your funds may count as taxable income.

You won’t receive any funds if you don’t reach your goal by your deadline. If Kickstarter doesn’t sound like the right fit for you, there are other ways to fund your creative business venture.

Save up to bootstrap

If you don’t urgently need funds, try saving up for your venture. It can take a while but depositing your money into a high-yield savings account like the Marcus by Goldman Sachs® High-Yield Online Savings Account or the CIT Bank Platinum Savings Account can help your savings grow a bit faster since you’ll be paid higher amounts of interest compared to traditional savings accounts.

Marcus by Goldman Sachs High Yield Online Savings

Goldman Sachs Bank USA is a Member FDIC.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • Maximum transactions

    At this time, there is no limit to the number of withdrawals or transfers you can make from your online savings account

  • Excessive transactions fee

  • Overdraft fee

  • Offer checking account?

  • Offer ATM card?

Pros

  • Strong APY
  • No minimum balance or deposit
  • No monthly fees
  • No limit on withdrawals or transfers
  • Easy-to-use mobile banking app
  • Offers no-fee personal loans

Cons

  • Higher APYs offered elsewhere
  • No option to add a checking account
  • No ATM access

CIT Bank Platinum Savings Account

CIT Bank is a division of First-Citizens Bank & Trust Company, a Member FDIC.

  • Annual Percentage Yield (APY)*

    3.75% APY on balances of $5,000 or more; balances less than $5,000 earn 0.25% APY

  • Minimum balance

  • Monthly fee

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle

  • Excessive transactions fee

    $10 per transaction up to $50 per month

  • Overdraft fee

  • Offer checking account?

  • Offer ATM card?

    Yes, if have a CIT Bank checking account

Pros

  • Strong APY
  • Minimum deposit required is low
  • No monthly fees
  • No overdraft fee
  • Option to add a checking account with ATM access

Cons

  • Only earn high APY on balances of $5,000 or more
  • $100 minimum deposit
  • Excessive transactions fee
  • No physical branch locations

For complete list of account details and fees, see our Personal Account disclosures.

* Platinum Savings is a tiered interest rate account. Interest is paid on the entire account balance based on the interest rate and APY in effect that day for the balance tier associated with the end-of-day account balance. APYs — Annual Percentage Yields are accurate as of November 20, 2025: 0.25% APY on balances of $0.01 to $4,999.99; 3.75% APY on balances of $5,000.00 or more. Interest Rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum Savings account is $100. Based on comparison to the national average Annual Percentage Yield (APY) on savings accounts as published in the FDIC National Rates and Rate Caps, accurate as of November 20, 2025.

If you’re building a more robust business that will require significant amounts of funding, or your business is already off the ground but you need more money to grow operations, then you may consider a small business loan from lenders like Credibly or OnDeck. They offer loans as high as $600,000 and $250,000, respectively.

Credibly

  • Types of loans

    Long-term loans, working capital loans, business line of credit and merchant cash advance

  • Better Business Bureau rating

  • Loan amounts

  • Terms

  • Minimum credit score

  • Minimum requirements

    Must have been in business for at least six months and have an average monthly revenue of at least $15,000

  • Availability

    Credibly offers business loans in all 50 states and Washington, D.C.

Pros

  • Approval within four hours
  • Low minimum credit score
  • Loan amounts of up to $600,000
  • Funds deposited as soon as the same business day
  • Considers overall business health for approval

Cons

  • Requires average monthly revenue of at least $15,000

OnDeck

  • Types of loans

  • Loan amounts

  • Terms

  • Credit score

  • Requirements

    In business for at least one year, with $100,000 annual revenue and a business bank account

Pros

  • Potential for same-day funding for term loans up to $100,000
  • Low minimum credit score
  • Fixed monthly payments

Cons

  • Doesn’t lend in Nevada, North Dakota or South Dakota
  • Early payment fee if you don’t qualify for prepayment benefit

Subscribe to the CNBC Select Newsletter!

Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every crowdfunding review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of small business products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.



Source link