Crowdfunding App Development: How to Build A Crowdfunding App Guide and Cost
August 14, 2022
Table of content
The Crowdfunding idea is to raise funds for a project from a wide range of people. The simplicity and effectiveness of crowdfunding has given impetus to a 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 virtual reality helmets, the first Bluetooth speakers, and the smartwatch Pebble, have appeared thanks to crowdfunding. It is expected that the growth rate of global crowdfunding will reach +16% per year on average, and in 2025, the total volume will reach $28.8 billion. Thus, the development and maintenance of a crowdfunding app will become very profitable. In this article, we will tell you everything you should know about crowdfunding app development.
Overview of the Crowdfunding App Development Market
According to statista.com, total alternative funding in 2019 was $11,718.5 million and the number of successfully funded projects reached 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 had the highest cumulative funding reach of $6,405 million in 2019.
Key Crowdfunding Applications and Trends:
- Charity and non-profit organization activities: helping people who lack their own funds for medical treatment, implementation of projects for environmental protection, etc.
- Attraction of investments to startups with the help of crowdfunding app mechanisms.
- Introduction of blockchain technologies: makes the process of raising funds and their uses more transparent, protect
ing from manipulation.
- Using crowdfunding apps to finance real estate projects. When there are low or negative bank interest rates, such projects are one of the most attractive and reliable areas for investing.
Crowdfunding apps have 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 areas such as food and beverages, medicine, health, and beauty.
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 available to crowdfunding apps. But it can also end up in the hands of cybercriminals. Therefore, companies need to pay more attention to cyber-security and the security of user data during fintech app development.
In 2022, crowdfunding app development companies expanded 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 and giving them an accurate answer, reduce time in service communications. Automatic consultants are already appearing.
An indispensable element of a crowdfunding app is that it needs to be managed by multiple users. The administration panel 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 choose whether to receive a product or service or just leave it as 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, and planning the budget and costs.
The next 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 it, and debug the application. This also includes project management, coordination of all fintech software development steps, and quality control. This crowdfunding app development stage is necessary for bringing your idea to life.
This stage includes testing functionality, load, compatibility, etc. Testing allows you to detect bugs and application malfunctions 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 for use. Technical support for a crowdfunding app development project usually includes bug fixes and patch management.
Crowdfunding App Development Costs
When it comes to crowdfunding app development, there are many factors that affect the cost of the project. The most expensive factors in crowdfunding app development are design, development, and marketing. Creating a typical crowdfunding app will cost from $60,000 to $230,000. 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 experience level of the crowdfunding app development team.
How to Reduce Crowdfunding App Development Costs
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 an application 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, cross-platform crowdfunding app development might be the best solution for you.
Develop an MVP
An 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 use MVP applications to gauge public interest and feedback before deciding whether to proceed with crowdfunding app development. This saves time and money by ensuring you are investing only in products that have a high chance of success.
A crowdfunding app developed by an agency will be much more expensive than one developed by a freelancer. However, it's important to remember that quality should always trump price when it comes to something as important as 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 have projects developed 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 can implement crowdfunding projects, you do not need to spend a huge amount of money on development. Just be clear about what features you will start with and 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. Moreover, Perfsol has been selected as one of the Top Mobile App Development Companies by TopDevelopers.co.
I am passionate about technologies. Adore solving challenges of our customers: going under the tech problem and trying to deal with a reason rather than a symptom. I do believe that is why our clients choose Perfsol.
How can you reduce crowdfunding app development cost?Crowdfunding app development requires experts who already have experience with similar projects. Pay attention to the portfolios of those with whom you are going to cooperate.
How much does it cost to develop a crowdfunding app?The average cost of crowdfunding app development is **$60k - $200k**. This cost can be almost halved by outsourcing.
How can you reduce the cost and speed up crowdfunding app development?To reduce the cost of crowdfunding app development, you need to decide which functionality you want to develop first. In addition, you can save a lot of money by outsourcing this job to crowdfunding app development companies.