Crowdfunding idea is based on raising funds for a project from a wide range of people. The simplicity and effectiveness of crowdfunding gave impetus to the wide application of this technology in other industries, including the financing of startups.
To date, a number of large and successful commercial projects, such as the virtual reality helmets, the first Bluetooth speakers, and the smartwatch Pebble, have appeared thanks to crowdfunding. It is expected that the growth rate of crowdfunding in the world will reach +16% per year on average, and in 2025, their total volume will reach $28.8 billion. Thus, the development and maintenance of a crowdfunding app become very profitable. In this article, we will tell you everything you should know about crowdfunding app development.
Overview of crowdfunding app development market
According to statista.com, total alternative funding in 2019 is $11,718.5 million and the number of successfully funded projects reaches 8,770,100. Total funding is expected to have an annual growth rate of 14.3% from 2019-2023, leading to a total of $20 million by 2023. In terms of cross-country comparisons, China will have the highest cumulative funding reach of $6,405 million in 2019.
Key Crowdfunding Applications and Trends:
- Charity and activities of non-profit organizations: helping people who lack their own funds for medical treatment, implementation of projects in the field of environmental protection, etc.
- Attraction of investments to startups with the help of crowdfunding app mechanisms;
- Introduction of blockchain technologies: allows making the process of raising and using funds more transparent, protected from manipulation;
- Using crowdfunding apps to finance real estate projects. In conditions of low or negative bank interest rates, such projects are one of the most attractive and reliable areas of investment.
Crowdfunding apps become a real alternative to attracting funds from venture capital funds or angel investors for small and medium businesses. The leaders in fundraising in 2019 were in such areas as food and beverages, medicine, health, and beauty.
Crowdfunding app development: important features
Passport information, phone number, insurance policy number, email, addresses, bank details - all this information is now available to crowdfunding apps. But it can also end up in the hands of cybercriminals. Therefore, companies should pay more attention to cyber-security and security of user data during crowdfunding app development.
In 2022 crowdfunding app development companies \expand their use of ML and AI technologies. ML and AI are real tools that increase conversions (e.g. in smart sales) or, by anticipating a customer's question, give them an accurate answer to reduce time in service communications. The appearance of automatic consultants is already happening.
An indispensable element of a crowdfunding app that needs to be managed by multiple users. It provides an interface for adding, editing, and deleting data, as well as for managing user accounts.
Crowdfunding app development stages
There are many successful examples of crowdfunding apps, where everyone can make a specific donation to a specific project and receive a product or service, or it will just be a donation. So, how does the development of such crowdfunding app solutions work?
First of all, it is necessary to develop an effective strategy for crowdfunding app development. This crowdfunding app development stage includes researching the target audience, developing the concept and content of the future app, as well as planning the budget and costs.
The second important crowdfunding app development stage is design. At this stage, designers create the visual elements and user interface, taking into account the requirements of the client and the specifics of the crowdfunding app development project.
In this crowdfunding app development phase, programmers write code, test, and debug the application. It also includes project management, coordination of all crowdfunding app development steps, and quality control. This crowdfunding app development stage is necessary to bring your idea to life.
This stage includes such types of testing as functional, load, compatibility, etc. Testing allows you to detect bugs and malfunctions of applications before their release to the market. As a rule, testing takes about 30% of the total time for the development of a mobile application.
Support and maintenance
Technical support - providing users with technical assistance in using the apps - usually becomes necessary after the app is released into service. Technical support for a crowdfunding app development project usually includes bug fixes, patch management, etc.
Crowdfunding app development cost
When it comes to crowdfunding app development, there are many factors that affect the cost of the project. The most expensive factors that affect crowdfunding app development are design, development, and marketing. A typical crowdfunding app will cost from $60,000 to $230,000 to create. The exact cost of crowdfunding app development depends on a varying number of development factors, some of which include the complexity of the business model and features, and the level of the crowdfunding app development team.
How to reduce crowdfunding app development cost
There are ways to reduce the cost of crowdfunding app development. Let's take a closer look at them.
Native crowdfunding app development is more expensive than cross-platform app development. This is because each platform has its own set of technologies and requirements. Cross-platform crowdfunding app development allows you to build applications once and deploy them to multiple platforms. This can save a lot of time and money in the long run.
If you have the resources to develop native apps, this will be the best option for you. But if you want to save money, then cross-platform crowdfunding app development might be the best solution for you.
Develop an MVP
MVP is the most basic version of a product that can be released to the market. It includes only basic features and market testing capabilities. Businesses need MVP applications to gauge public interest and feedback before deciding whether to proceed with crowdfunding app development. This saves time and money by investing only in products that have a high chance of success.
The cost of crowdfunding app development by an agency will be much more expensive than developing it by a freelancer. However, it's important to remember that quality should always trump price when it comes to something as important as a crowdfunding app development.
The cost of crowdfunding app development can vary greatly depending on the company and region. For example, salaries in the Eastern European region are lower than in the U.S. and Western Europe, which makes it less expensive to develop projects in those regions. Finding a good outsourcing company can cut the cost in half without sacrificing quality.
To create a crowdfunding app with a complex structure and complex code, where you need to implement crowdfunding projects, you do not need to spend a huge amount of money on development. Just be clear about what features you'll start with, and also find a professional outsourced crowdfunding app development team. For example, you can contact Perfsol and our crowdfunding app development experts will help you build software in the blink of an eye.