Crowdfunding is gaining traction worldwide and has become a leader in the digital economy. Traditionally, financing a business was a matter of asking for capital from a few investors, and in return, the investors are given an equity position or a return on investment. But with a crowdfunding platform, any charities, small startups, or any individual can appeal to a large group of potential funders to contribute a small amount toward the goal. It is why crowdfunding has emerged as the first choice of non-profit organizations, small businesses, and enterprises to raise funds for their projects.
Crowdfunding platform is typically a website or application that not just presents an opportunity for investors and creators to bring innovations to life but also serves as a source to raise funds, particularly via the internet. However, building a crowdfunding platform that can help keep up with your requirements is not so easy. It requires several considerations, careful planning and systematic execution of the same.
Thankfully, there are professional software development companies that can help build custom solutions. So, if you want to run a successful fundraising campaign, hiring a finance software development company can be your ultimate bet.
Let’s discuss in detail how to make a crowdfunding platform, its cost, process, and the features involved.
Cost of Building a Crowdfunding Platform
The cost of developing a custom software application varies depending on various factors like your chosen crowdfunding software, the type of crowdfunding platform you want to create, the features you intend integrating into the application, the location of the development team and so on. On average, the custom software application development cost ranges anywhere from $50,000 to $100,000 or more.
Process to Build a Crowdfunding Platform?
Building a successful crowdfunding platform entails several steps. Let’s take a look at the steps involved in creating your own crowdfunding platform.
Discovery:
The first and foremost step of building a crowdfunding platform is discovery. In this phase, you need to do market research, identify the type of crowdfunding platform you want to build, create a budget plan, document your vision, decide on the technical infrastructure and features of the platform, and collect other essential information. Being sure of these crucial aspects will help you design a roadmap that helps bring your idea to life.
Design
Once you are done with the discovery phase and have decided on all the crucial aspects of the crowdfunding platform, it is time to get started with the designing phase. The designing phase includes several segments like UI/UX design, interface design, graphic design, etc., that work together to improve the overall performance of your crowdfunding platform on different devices.
Development
Now, you need to program the designing elements by adding the programming language (HTML, javascript, CSS, and server code) to them. It involves developing the platform using the chosen crowdfunding software and integrating the features and functionalities. In this phase, the fintech software development companies deploy the code from source control to a hosting platform and publish it to the world wide web or release the app to stores.
Testing
Once the platform is built, it is imperative to test it thoroughly to ensure it is functional and user-friendly. Testing is essential to find out any feasible errors or bugs that can hamper the overall performance of the website and mobile app. If any critical issue is found during the testing phase, the developers take appropriate action to debug the issue and make it error-free to finally release the application to the market.
Features of a Crowdfunding Platform
While crowdfunding platform development helps leave a significant impact on the global community of entrepreneurs, building a crowdfunding website or application that can drive success is not so easy. It involves careful consideration of the features that determines the cost and success of the platform. Here is a list of some of the essential features your crowdfunding platform must have.
1. User Profile: A user profile is the most important feature of any application, including a crowdfunding platform. It allows users to create an account and personalize it based on their name, contact details, bio, etc.
2. Funding Goal: A fundraising campaign makes no sense without setting a funding goal, which is the amount of money the crowdfunding platform owner needs to raise to bring their project to life.
3. Project Creation: Project creation is another significant feature, allowing users to create campaigns and share details about their idea with the help of project descriptions, images, videos, etc.
4. Rewards System: Adding a reward system is one of the most influential features that drive the attention of supporters. Giving small rewards or recognition to the supporters as an appreciation for their contribution will go a long way in fulfilling the fundraising goal. These rewards can be a simple thank you note, a certificate of contribution, a service related to the project, or likewise.
5. Project Updates: Your supporters will feel more engaged and believe in the project when they get the regular updates about the progress of your project. So, make sure your crowdfunding platform supports the feature of sharing regular updates, sending messages, etc.
6. Payment Gateway: Integrating the various payment gateway options into the platform allows the contributors to pay securely and conveniently through their preferred payment mode.
7. Social Sharing: The ultimate goal of any fundraising campaign depends on reaching the wider audience and genearting the higher contribution. And, sharing your project details on social media platforms is one of the tried and tested ways to reach a wider audience and attain the project goal.
8. Trust and Safety: A crowdfunding platform must have the trust, transparency, and safety features to ensure the integrity of the platform and protect its users.
Conclusion
Building a crowdfunding platform can be a challenging but rewarding experience. However, by hiring a reputed finance software development company and considering the details mentioned in this blog, you can easily create a custom solution that meets the needs of a fundraising campaign. With the right approach and a bit of hard work, you can build a successful crowdfunding platform that helps entrepreneurs, creatives, and non-profit organizations bring their projects to life.
