The surging trend of crowdfunding has revolutionized how individuals and businesses raise capital. Leaving aside traditional procedures, crowdfunding platforms have emerged to allow individuals possessing amazing ideas to connect directly with worldwide audiences and potential supporters and investors.
According to Mordor Intelligence, the crowdfunding market will likely reach $1.5 billion by the end 2024. |
However, a successful crowdfunding app development demands careful planning.
This comprehensive guide will explain different types of crowdfunding models and their essential features and offer insights into the cost of developing a crowdfunding app.
If you are a visionary entrepreneur, this article answers every relevant question and provides the information you need to seamlessly navigate the exciting world of crowdfunding app development.
When you have a unique idea for a new product but need more money to build it from scratch. Here, crowdfunding app development can help you. It’s the process of creating an app where various interested persons can contribute money to give a life to their dream project.
The crowdfunding app bridges the gap between project creators and backers. The latter can explore the projects listed in the app, pick the ones they would like to contribute and assist them in raising capital.
Crowdfunding has become one of the popular ways to raise capital for varied projects favoring businesses and individuals. It lets them quit legacy funding modes, such as venture capitalists and bank loans, by directly connecting with potential investors.
Let’s get deeper into analyzing the market and digging out the latest facts and figures:
These statistics showcase an elevating adoption of the crowdfunding trend online by both project creators and investors, indicating speedy market growth.
Crowdfunding mobile apps perform like a digital connection between fundraisers and investors. Let’s peep into the workings of a crowdfunding app:
Outlining Project Plan: First, the project creators sketch their idea, funding objective, timeframe, and how they will leverage the funds. Typically, they embrace engaging visuals and clear explanations of their project’s value proposition.
Spread the Word: Ahead, the project creators use the platform’s tools and their networks to make the world know about their campaign. Email outreach, social media marketing, and online communities can be chosen as vitals for reaching potential investors (backers).
Pay Online: Here, the crowdfunding application helps conduct secure online transactions. Investors can securely contribute using varied payment modes.
Funds Release: Next, according to some popular crowdfunding platforms, if the campaign meets or exceeds its objective within the decided timeframe, the idea proposer gets the funds (deducting platform fees).
Rewarding: Once the creators are funded, they provide the promised reward (if applicable) to the investor, further fostering trust and creating a loyal community.
Explore the Project: Backers browse the projects, exploring various campaigns on the crowdfunding app and filtering by interest, funding stage, or category. Going through the detailed videos, descriptions, and creator profiles, the backers assess the project’s potential impact and viability before contributing an amount.
Choose the Suitable Project: Investors choose the projects they find capable of cutting the cut and investing in an amount that suits their comfort. Some choose to include varied pledging options with different reward tiers while developing crowdfunding apps.
Track Project’s Progress: Ahead, with the power of advanced technologies, the applications allow backers to track the campaign’s progress and check if funding goals are met.
Update About Project Status: Project creators usually offer the latest updates about their project creation, milestones accomplished, and how the funds are used to keep investors engaged and invested.
Overall, crowdfunding mobile apps offer a user-friendly interface for project creators and investors, easing them to connect, raise capital, and give life to their innovative ideas.
Let you know that crowdfunding is not a one-size-fits-all solution. Different project types and funding objectives demand distinctive approaches.
Crowdfunding app development follows various models to cater to every relevant service.
Let's unveil some below:
Aiming to raise funds for social initiatives, charitable causes, or personal needs, the donation-based crowdfunding app facilitates backers to contribute with no anticipation of a return on their investment. It’s because such apps are entirely driven by the wish to support a deserving cause.
One of the most well-known models, reward-based crowdfunding app development, lets backers get non-monetary rewards for their contributions, like a discount, the finished product, an exclusive experience, or early access. This motivates investment and instills excitement for the projects.
The equity-based crowdfunding app permits ventures to raise huge capital while providing investors with the possibility of long-term growth. It enables accredited investors to fund businesses or startups in exchange for ownership shares (equity) in the company.
The debt-based crowdfunding app connects the project creators (borrowers) with backers (lenders) who offer loans at a decided interest rate. This app is similar to the peer-to-peer lending platform where the investors effectively invest and gain returns.
The crowdfunding app permits individuals to invest in real estate projects via fractional ownership. This invades the investment barriers and finds a way for real estate opportunities to a broad range of investors.
A hybrid crowdfunding app fuses elements of different models. For instance, a campaign may offer equity for big investments and rewards for smaller contributions.
In this type of crowdfunding app development, investors contribute to creative projects, such as films and music, and get a share of the potential profits generated, such as royalties for music sales.
Specifically built to raise funds for non-profit organizations and social causes, a cause-based crowdfunding app is similar to donation-based solutions but usually focuses on a particular impact mission.
Your chosen model impacts the app's functionality and meets the needs of specific project creators and investors. So, before you start crowdfunding mobile app development, be specific about your requirements and then kickstart the development.
Now, let's get deeper and explore the benefits of crowdfunding app development for the platform and the various stakeholders it connects.
The crowdfunding mobile app connects the project creators with a huge pool of potential backers from all over the world, keeping the geographical boundaries and legacy funding network far.
Crowdfunding platforms offer a wide range of innovative ideas, from visionary endeavors to innovative businesses and social causes, unlocking the doors for projects that might be challenging with traditional funding.
Crowdfunding apps are like real-time market validation tools. The funding level you get for your campaign provides valuable feedback on your project's caliber. Robust backers' interest indicates strong public demand, while the lower funding may point to areas of improvement or a need to work on the concept before a launch.
The crowdfunding process builds a community encircling your project. Backers become entirely invested in the project's success, crafting a sense of shared purpose. Social media integration and communication features fuel the engagement ahead, permitting backers to interact, creators to share updates, and a sense of community to grow around the project.
Acting as a robust marketing and promotional tool for project creators, the crowdfunding app exhibits campaigns to a huge audience of potential backers. Also, features such as built-in marketing tools and social media integration permit creators to spread the word far and wide.
Crowdfunding provides varied models, such as equity-based, debt-based, or reward-based, permitting creators to choose the approach that best goes perfectly with their project and funding objectives.
Crowdfunding platforms usually demand detailed project information and clear communication from project creators. This builds trust and keeps backers informed about how their funds are used.
The crowdfunding app permits creators to link directly with passionate investors who are keen to support something new and amazing. Early adopters get rewards for believing in the projects. Initially, these supporters can become brand loyalists and offer valuable feedback during development.
With a crowdfunding app, project creators can witness significant risk reduction compared to traditional funding modes with potential rejections and high stakes. The creators can initially raise even smaller amounts to drive public interest, validate their concept, and accumulate valuable feedback before seeking big investments.
Compared to traditional funding methods, crowdfunding campaigns can be launched comparatively in a comprehensive way and faster, allowing project creators to access capital. Backers can also invest instantaneously, pacing the capital inflow and getting the project rolled out sooner.
By allowing the crowdfunding campaign to take off, you can offer your most dedicated supporters an opportunity to directly contribute to the new product development or feature inclusion they have been requesting. In return, you can bestow them exclusive rewards, such as limited edition products, early access, or deeper involvement in the app development process. This fosters a robust connection with your customer base, reveals appreciation for their loyalty, and crafts a sense of community encircling your brand.
Crowdfunding apps are the powerhouse for developing credibility and momentum. A successful campaign instills excitement and reveals public interest in your project. Backers become more invested in your success, generating a buzz around your innovative idea. This builds momentum and powers your credibility, easing and driving further investment.
The advantages are far-reaching, from project creators looking for funding and investors running exciting ventures to platform owners developing thriving businesses and backers seeking growth.
By building a crowdfunding app, you can empower creators, connect backers with innovative projects, and build a dynamic funding ecosystem.
Every second, a new mobile app is launched on the app stores. The same is applicable to crowdfunding apps. You can also see various types of such apps on the app stores, researching which you will find their strengths and weaknesses. Acknowledge these factors as opportunities and aim to avoid the negative points and consider the positive ones.
We have listed the best crowdfunding apps below, which are leading the market:
Focus: Creative projects, gadgets, product development, and tech.
Top Features: Large community, all-or-nothing funding model, global reach.
On Kickstarter, the investors are the creative visionaries who enjoy funding new ideas and witnessing them performing successfully. The crowdfunding campaigns running on Kickstarter attain success if they meet their goals.
You can also build an app like Kickstarter if you are looking to help creators to launch an innovative product or creative project and want to reach a wider audience for rewards-based funding and pre-orders.
Focus: Varied projects, flexible funding goals.
Top Features: International campaigns, Flexible approach, equity crowdfunding options
Indiegogo's crowdfunding campaigns push the development of new products. The backers can support new technology and entrepreneurs from the initial development stage.
You can develop a crowdfunding app like Indiegogo to meet creators’ needs to flexibly reach their funding goals and explore varied crowdfunding models for their projects.
Focus: Personal causes, emergencies, medical expenses, social good, etc.
Top Features: Easy setup, emotional storytelling focus, social sharing tools.
Using this app, users can raise funds for themselves, charity, family, and friends. With no extra charges to start, GoFundMe is a leading crowdfunding platform that helps raise money or also make a donation peacefully.
Create a crowdfunding app like GoFundMe to help people raise funds for charity, a personal cause, or a social initiative based on community support and emotional connection.
Focus: Ongoing creative works, influencer funding, and artist support.
Top Features: Recurring monthly pledges, exclusive content rewards, direct connection with supporters or fans.
Patreon is an app where creators get a stage to craft what excites them. Many creators on this app share podcasts, videos, music, recipes, art, writing, and more with their passionate fans and earn in return. The starting is free for creators; with time, when they look to earn money, they choose paid membership to launch their digital shop. Here, they directly get connected to communities.
Build an app like Patreon to give wings to a YouTuber, musician, or artist who is seeking financial support from audiences in exchange for exclusive experiences or content.
Focus: Startups & early-stage businesses, accredited investors
Top Features: Regulation A+ compliance, connection with potential venture capitalists, investor network.
The crowdfunding platform Fundable connects startups looking to invest with accredited investors. The app aims at equity and reward-based crowdfunding for startups, not donation-based crowdfunding for users' personal projects.
Develop an app like Fundable to drive startups looking for equity investment from accredited investors who want to navigate equity crowdfunding regulations.
Focus: Social causes, charity events, non-profit fundraising
Top Features: Storytelling tools, charity partnerships, and team fundraising options.
Using this crowdfunding app, creators can raise money online for millions of charities with charity fundraisers, personal fundraising pages, and internet fund-raising campaigns.
Create an app like CrowdRise to help individuals or a non-profit organization raise funds for specific social causes and look to use a community-driven fundraising platform.
Focus: Real estate investment opportunities, fractional ownership
Top Features: Low investment barriers, online investment management, access to diversified real estate portfolios.
UpEquity is a crowdfunding app for real estate that follows different approaches to raise capital from a pool of investors. The app aims to help homeowners who want to buy new homes before selling their current ones. It’s a combination of free cash offers, automated underwriting, and low mortgage rates that streamline users’ experience in getting their dream homes faster.
If you want to democratize real estate investment by allowing individuals to invest in properties through fractional ownership, you should develop an app like UpEquity.
Focus: Commercial real estate investment, not residential properties.
Top Features: Focus on accredited investors, diversification opportunities, rigorous vetting process.
A leading commercial real estate crowdfunding app that permits individuals to invest easily in commercial real estate projects with more experienced investors.
You can build an app like Crowdstreet catering to accredited investors looking to access commercial real estate investment opportunities while aiming at diversification, transparency, and potentially high returns.
This is a partial list; you can find more crowdfunding apps in app stores. Go through the top ones, analyze plus and minus points, learn from them, decide what features to include, finalize an intuitive design, choose a tech stack of the latest technologies and tools, etc.
Now that you know all the relevant information about a crowdfunding app, its types, benefits, and more, it's time to decide what features to embrace in the app.
You can start with the basic features initially if you have a limited budget.
Feature | Description |
User Registration and Profile Management | Enable users to create accounts, update information, and manage profiles easily. |
Project Creation and Management | Allow creators to submit project specifications, rewards (if applicable), funding goals, and timelines and effectively manage their campaigns. |
Payment Gateway Integration | Enable secure integration with reliable payment gateways for flawless transactions (contributions, rewards) |
Social Media Integration | Permits users to share projects and campaigns across social media platforms to reach a wider audience. |
Search and Filter Options | Offer search functionalities and filters depending on the category, funding stage, location, etc., to enable easy project discovery for backers. |
Messaging and Notification System | Ease communication between project creators and investors through messages and offer notification alerts for funding milestones, campaign updates, etc. |
Security and Privacy Controls | Seamlessly implement strong security measures to safeguard user data and financial details and ensure platform integrity. |
Analytics and Reporting Tools | Offer creators and backers deep insights on funding progress, campaign performance, backer demographics, and other valuable data. |
Responsive Design for Mobile Accessibility | Ensure the app is fully-optimized for mobile devices with an interactive and user-friendly interface and flawless navigation for a seamless experience on tablets and smartphones. |
Customer Support and Feedback Mechanism | Offer dedicated customer support channels for users seeking assistance and feedback for ongoing app enhancement. |
With your user expansion and app growth, you can include advanced features while you develop a crowdfunding mobile app.
Feature | Description |
AI-Powered Project Recommendation Engine | Use machine learning to suggest related projects to backers depending on their past funding behavior and interests. |
Virtual Reality (VR) Project Showcases | Smoothly integrate VR experiences to enable backers to interact virtually with environments or products, crafting a more immersive experience. |
Blockchain Integration for Transparency and Security | Utilizing blockchain technology to craft a secure and transparent transaction record and project updates. |
Advanced-Data Analytics for Project Performance Evaluation | Offer in-depth analytics for project creators, including engagement metrics, backer demographics, and funding trends. |
Automated Reward Fulfillment System | Ease reward fulfillment by automating the process depending on successful funding milestones and pre-defined rules. |
Customizable Project Funding Models | Provides creators with the flexibility to pick from varied crowdfunding models (e.g., donation-based, equity) to suit their project needs best. |
Integrated Project Milestone Tracking | Let creators define and track project milestones within the crowdfunding app, informing backers about the project’s progress and fostering transparency. |
Geolocation-Based Project Discovery | Use location data to assist backers in finding projects in their area or offer geographically specific campaigns. |
Multi-Currency Support for Global Campaigns | Allow seamless transactions in varied currencies, catering to a worldwide audience of investors and creators. |
Integration with E-commerce Platforms | Connect the crowdfunding mobile app with e-commerce platforms to allow product pre-sales to be rewarded or to ease reward fulfillment. |
Converting your crowdfunding vision into a real product, you need to craft a well-defined roadmap. Below, we have unpacked an essential development process sequentially, following which you can build a successful app that can empower the target audience.
This is the first stage that includes defining the app’s target audience, concept, and the specific crowdfunding type you seek to support. Conduct market research, deeply analyze your competitors platforms, and make a solid business plan marking features, monetization strategy, and functionalities.
Here, you should translate your crowdfunding ideas into visual presentations. Wireframes are the basic layouts that define the basic structure of the app and user flow. Prototypes are more engaging and allow you to test user experience and accumulate feedback before completing development.
The technology stack holds the best suitable programming languages, tools, and frameworks that you can use to build an app. While you choose one for your crowdfunding app development, consider the factors, like security, compatibility, and scalability. (We have showcased a suitable technology stack for your app later in this post).
The development of your app starts here. Developers build an engaging front-end user interface for your app, ensuring it offers an intuitive and smooth user experience. Simultaneously, back-end development aims at server functionality, data management, payment processing, and core app logic.
Rigorous testing is important for whatever solution you build. In this stage, expert QA testers identify glitches and fix them, ensuring the platform is stable and also verify the functionalities across varied devices and operating systems. Performing user testing with the target audience offers valuable feedback for deep refinement ahead.
The last and final crowdfunding app development step is to deploy the app on the app stores. When choosing a suitable app store, you must deploy the app depending on your target platform (Android, iOS, or both). Once approved, your app will be launched in the respective store. Your job doesn’t end here. You should market your app post-launch to drive more users and creators.
These are the steps to build a crowdfunding app. You should connect with an app development company to perfectly build an app you want that can provide the expected outcomes.
The cost to build a crowdfunding app may vary, typically between $30,000 to $300,000. The oscillations in the cost of a crowdfunding app development depend on varied factors. Let’s discuss below:
The more features you integrate into your app, significantly advanced functionalities, such as VR experiences or AI recommendations, it will increase the development cost.
Hiring a team of experienced app developers in Western Europe or North America will likely cost you more compared to developers in other regions. So, choose according to your budget and project requirements.
The chosen programming languages, technologies, and frameworks can affect the cost of app development. Complex back-end infrastructure or custom integrations may contribute to the expense.
A visually appealing and user-friendly app design demands creative UI/UX designers, adding to the development cost.
Effective project management and post-launch maintenance also elevate the app development cost.
App Complexity | Features Included | Estimated Cost Range |
Basic | User profiles, payment processing, project creation, basic communication tools | $30,000 - $75,000 |
Mid-Range | Essential features, analytics tools, social media integration, and potentially a custom reward management system | $75,000 - $150,000 |
Complex | All of the above + advanced features such as blockchain integration, AI-powered recommendations, or VR experiences | $150,000 - $300,000+ |
The most common factor that impacts the app development expense is complexity. Before you start, consider making your app simple with basic features. Later, you can increase the app’s advancement by witnessing the increasing ROI.
Also Read: A Comprehensive Guide To Mobile Application Development
The timeframe for developing a crowdfunding app may range from 16-20 weeks, but it relies on several factors, especially the complexity of the app.
App Complexity | Description | Estimated Development Time |
Basic | A streamlined feature set can accomplish development within a shorter timeframe. | 16-20 weeks |
Mid-Range | The extra features demand more development time. | 20-28 weeks |
Complex | A more extensive development timeframe is needed to ensure the inclusion of advanced features' perfect design, engineering, and testing. | 28+ weeks |
These are only estimates. Experts recommend discussing specific project needs with an experienced mobile app development company to get an accurate timeframe and budget details.
Whatever app you develop thrives in the market if it embraces the best functionality and offers the expected user experience. Here, the choice of the right tools and technologies makes everything work.
We have created a table holding an essential tech stack that is the backbone of a crowdfunding mobile app.
Component | Description |
Front-End Development | JavaScript (React, Vue.js, Angular), HTML5, CSS3 |
Frameworks | React Native (for mobile apps) |
Back-End Development | Python (Django, Flask) , PHP (Laravel), Node.js (Express.js) |
Databases | MySQL, PostgreSQL, MongoDB |
Payment Processing | Stripe, PayPal, Braintree |
Project Management Tools | Asana, Trello, Jira |
Testing Tools | Postman (API testing), UI/UX testing tools (BrowserStack) |
Cloud Platforms | Services like Google Cloud Platform (GCP) or Amazon Web Services (AWS)can offer scalable infrastructure for the app. |
Security Tools | Implement strong security measures to safeguard user data and financial details. |
Analytics Tools | Integrate analytics platforms (e.g., Google Analytics) to track campaign performance and user behavior. |
Communication Tools | Use tools like Microsoft Teams or Slack for real-time communication within the development team. |
This is a general overview of the technology stack for crowdfunding app development. The specific technologies and tools may vary based on the selected features, the app’s complexity, and developers’ preferences.
Developing a crowdfunding app involves overcoming several hurdles. Here's a breakdown of some key challenges and potential solutions:
Challenge: Irrelevant to the application you are building, you should prioritize the security of sensitive user data, like personal and financial, and ensure the transactions are well-protected. You need to be aware of fraudulent activity and data breaches that can affect the platform's reputation and user trust.
Solution: Implementing robust security measures, such as multi-factor authentication, encryption, and regular security audits. Consider trusted payment processors that follow industry security standards (PCI DSS).
Challenge: You should enhance the user experience by allowing them to conduct seamless financial transactions, and for that, integration with reliable and secure payment gateways is vital. But, complexities may surface with distinctive payment regulations across varied regions.
Solution: You can go for payment gateways that have global reach and a proven track record. Ensure your crowdfunding application complies with required payment regulations depending on the target audience. Opt for payment processors that provide developer-friendly APIs for flawless integration.
Challenge: It’s important to keep users actively engaged on your platform for its ultimate success and comprehensive growth. Both backers and creators need reasons to revisit your platform.
Solution: Implement features such as push notifications, social media integration, and personalized recommendations. Build community through live events, discussion boards, and forums. Craft an engaging user experience with intuitive and user-friendly navigation.
Challenge: Crowdfunding regulations may change based on the type of crowdfunding offered (donation-based, equity-based) and location. If your platform fails to comply with the relevant rules, it may lead to penalties and legal issues.
Solution: Consult with reliable legal professionals acquainted with crowdfunding regulations in your target markets. Also, ensure your app’s terms and conditions clearly showcase user rights and responsibilities. Stay updated on ever-evolving regulations and make your platform available to them accordingly.
So, these are the challenges and possible solutions that you must consider while developing a crowdfunding app to emerge with a successful platform.
PixelBrainy is widely known as a one-stop shop for building a robust and successful crowdfunding application.
By partnering with PixelBrainy, you get a successfully running platform and a trusted connection entirely dedicated to making your platform up and running with flying colors.
A team of experts at PixelBrainy is always set to serve its clients, confront their challenges, understand their outlook, and strengthen them to launch a secure, engaging, and legally compliant crowdfunding app that fosters innovation and drives your project ideas to life.
Key Highlights of Hiring PixelBrainy:
So, contact a reliable mobile app development company and witness your app up and running as expected in the market.
The crowdfunding app development world is about to overflow with potential. You can start your rewarding journey to launch a successful crowdfunding app by carefully finalizing different crowdfunding models, understanding the development cost, and integrating features suiting your vision.
A successful crowdfunding app crosses its constraints, fosters a community, empowers project creators, and drives innovative ideas to life.
Partnering with a team of developers from PixelBrainy who can offer custom app development services can ensure building an app that’s compliant, secure, and ready to stay ahead of the curve in the ever-evolving crowdfunding landscape.
So, are you set to transform your app vision into a reality? Take the first step now and turn your crowdfunding vision into a robust platform for collective action and groundbreaking ventures.
Hire mobile app developers today to start your app development venture tomorrow!
Depending on the complexity, features, and development team, the cost typically ranges from $30,000 to $300,000.
Yes, you can absolutely customize the features and design of your crowdfunding mobile app to fit your unique needs and vision.
There's no one-size-fits-all answer for this. However, effective strategies usually include influencer outreach, social media marketing, and public relations efforts.
Yes, crowdfunding apps are generally legal, but rules and regulations can vary based on your location and crowdfunding type. Consulting with a legal professional is recommended.
About The Author
Sagar Bhatnagar
Sagar Sahay Bhatnagar brings over a decade of IT industry experience to his role as Marketing Head at PixelBrainy. He's known for his knack in devising creative marketing strategies that boost brand visibility and market influence. Sagar's strategic thinking, coupled with his innovative vision and focus on results, sets him apart. His track record of successful campaigns proves his ability to utilize digital platforms effectively for impactful marketing efforts. With a genuine passion for both technology and marketing, Sagar continuously pushes PixelBrainy's marketing initiatives to greater success.
Transform your ideas into reality with us.