StartEngine and similar portals let ordinary people buy shares in a company through Regulation Crowdfunding and Reg A+. It suits startups with a growth story, an exit in mind and the appetite for ongoing SEC reporting.
Most local businesses are not that. A restaurant, a gym or a repair shop rarely wants hundreds of shareholders, annual filings and an obligation to deliver returns. Rewards raise money from the same community without selling any of the company.
Pledzy vs StartEngine
| Pledzy | StartEngine | |
|---|---|---|
| What you give up | Nothing — you keep 100% of the business | Equity in your company, spread across many shareholders |
| What backers get | A reward — product, service or recognition | Shares, with the hope of a future return |
| Regulation | No securities offering | SEC-registered offering with ongoing annual reporting |
| Cost | 5% plus 2.9% + 30¢ processing | Commission on the raise, often plus equity and service fees |
| Time to launch | Build the campaign, pass review, go live | Legal prep, financials and filings before launch |
| Nonprofits | Welcome, at a reduced 3% fee | Not possible — equity requires a for-profit issuer |
- You want to keep full ownership and control.
- Your raise is measured in thousands, not millions.
- Your supporters are customers, not investors.
- You want to launch in weeks without legal and filing work.
- You are a high-growth startup raising serious capital.
- You can carry the legal, accounting and reporting burden.
- Your supporters genuinely want a stake and a potential return.
Common questions
Do backers own part of my business?
No. Pledzy is reward-based. Backers receive what you promised in the reward tier and nothing else — no shares, no dividends, no claim on the business.
Which raises more money?
Equity crowdfunding generally raises far more, because investors expect a return. Rewards raise less, but the money is not repayable and does not dilute you.
Keep reading
GoFundMe is built for personal causes. Pledzy is built for local businesses raising money with rewards, verification and a campaign structure customers expect.
Kickstarter is all-or-nothing and built for creative products. Pledzy lets local businesses keep what they raise, with rewards, local discovery and a lower risk of ending with nothing.
Indiegogo retired flexible funding, so new campaigns are all-or-nothing and aimed at product launches. Pledzy keeps what you raise and is built around a local customer base.
Honeycomb lets a local business borrow from its community and pay interest. Pledzy raises the same kind of money from the same people with rewards instead of repayment.
Donation tools are built for ongoing giving on your own website. Pledzy is a campaign platform with reward tiers, review and local discovery — at a 3% nonprofit rate.
Patreon is monthly membership for creators. Pledzy is a one-time campaign for a local business with a specific thing to fund and a deadline to do it by.
Facebook fundraisers are cheap and easy, but donation-only and built for personal causes. Pledzy gives a business a reviewed campaign page, reward tiers and verification.
Every fee on a pledge in plain language, with the real math.