How to Create a Successful Crowdfunding Apps?

Today, crowdfunding platforms like Kickstarter and Indiegogo have made it easier for startups to raise money. The past decade has been an opportunity for entrepreneurs and new concepts. To ensure that this trend continues to be powered by lucrative investments the market will see a demand for a variety of crowdfunding platforms. This is why there’s an increase in the demand for Crowdfunding Apps.

Questions such as the crowdfunding app development costs, how long is it going to take to create one, as well as the elements that should be included in a crowdfunding application, are important to address. Before we get started on answering these questions, let’s be aware of the current market trends and some jargon used in the industry.

Crowdfunding Market Trends

As per Statista, the crowdfunding market is predicted to hit $1,053.7 million by 2022’s end. In the years following 2022, the number of transactions will experience an increase of 3.33% per year. of 3.33 per cent between 2022-2025. the total investment will be $1,201.1 million in 2025.

Forbes reports that at present, Chinese crowdfunding platforms run by JD, Taobao, and Alibaba are the top three in the market globally, even though China has an exclusive online ecosystem.

The crowdfunding companies have already supported several big projects, for instance, the Poweregg drone that raised $15 million through JD, and the inventor of the fingerprint smart lock Kaadas was awarded $4.5 million in funding from Taobao.

What do you need to know to create Crowdfunding Apps for P2P?

There are a few things you need to be aware of before learning how to develop an app that is successful in crowdfunding. Before you go on your journey to create your app, we must know the basics:

• It’s not difficult to create a peer-to-peer crowdsourcing app, but you require an ideal mindset as well as the right tools to conquer the terror of terminology, FinTech regulations, and development.
• Mobile platform – It’s based on the audience you want to reach. You can select between iOS and Android or design your crowdfunding application for both platforms. If the majority of your potential users are using one mobile platform, it’s best to develop the app’s MVP (Minimum Viable Product) for the only platform and evaluate your app’s idea. This can significantly lower the initial cost of investment.
• Off-the-shelf applications There are many pre-built crowdfunding software solutions on the market, which allow you to reduce the time it takes to create your crowdfunding app. But, these options tend to be targeted at smaller groups and events. On a bigger scale, the off-the-shelf solutions do not meet expectations.
• Outsourcing – In the case of Fintech outsourcing of development, it is possible to hire a FinTech development company to create the crowdfunding application for you. You could also outsource the development. That is, for the tasks your in-house development team has difficulty accomplishing, you can transfer those specific work to a FinTech development firm. But, I would advise that you opt for total outsourcing because certain FinTech developers are incredibly skilled in the field of using technology in the financial industry. They are well aware of the best practices for the user experience as well as FinTech conformance.
• Digital signature and encryption Because your P2P crowdfunding app is handling a large amount of financial information that is sensitive and personal, it is essential to invest in security. Additionally, protecting the customers’ financial and personal information is a mandatory requirement throughout the globe.
• UX/UI – While it’s true that we shouldn’t judge an author by the cover. We can’t control user preferences. Particularly in these times in which there are many big players in the market. If your crowdfunding application looks unprofessional, nobody will be able to praise the features and benefits you offer. The design and appearance of your application are just equally important as its functionality.

Crowdfunding Business Models

Indeed, creating crowdfunding apps is an excellent idea. But, how do you earn revenue from this crowdfunding platform? There are a variety of ways to make money from crowdfunding apps. It is helpful if you thought about these at the time of developing your concept for your app. This will help make your requirements easier to understand and simple.

• Peer-to-peer lending
• Earnings from royalties
• Earnings from equity-based sources
• Donation-based earnings
• Hybrid model

Of all the different business model options, P2P lending is the most well-known because it allows entrepreneurs to borrow money directly from investors. No intermediary is required, except the crowdfunding app that serves as a platform to create a bridge between the borrower and the investor.

P2P crowdfunding platforms don’t carry an investment risk and can develop to a size that is impossible using traditional crowdfunding methods. Certain P2P lending platforms even put their funds in addition to the investment of retail investors. These platforms are more reliable as compared to other crowdfunding sites. They truly make investments more accessible.

These Platforms for crowdfunding P2Pcan quickly assess the credit score of borrowers through open banking APIs and then automatically conduct a risk assessment. Based on their assessment, they decide on the interest rate for each crowdfunding campaign. Borrowers can also pay back the loans through the platform. So, the crowdfunding platform you choose to use has access to lots of financial information which can be used to enhance the credibility of the platform.

Usually, the lender gets charged an initial cost for the Crowdfunding Apps campaign. The fees range between 1 and 5%and are the main source of income on these platforms.

What are the most important Crowdfunding Apps Specifications?

1. Payment Gateway Supporting Multiple Currencies

As of the year 2019, the most widely used currency worldwide is the US dollar. Crowdfunding Apps campaigns usually receive contributions from around the globe. A majority of investors make payments in UDS however, some will not. Therefore, it’s beneficial to make sure your crowdfunding app is configured to allow investment in a variety of currencies.

The main benefit of having support for multiple currencies is that it can put an extra step to staying ahead of the competition in crowdfunding applications. It is possible to consider having support for these currencies:

• Australian dollars
• Yen
• Yuan
• Euro
• Singapore dollars
• Canadian dollars

You’ll be able to access an investor pool if you’re able to accept all of these currencies. This will allow you to take your Crowdfunding Apps to an international platform. Additionally, you’ll gain the trust of the public because you’ll be welcoming investors from all over the globe. In addition, investors can raise money quickly.

2. Progress Meter

Visual representations of development are extremely effective to inspire borrowers and investors. You can also demonstrate this progress to investors as well so that they can decide if the program is worthwhile to invest in or not.

3. Mobile App Security

The security of each FinTech app is essential and must be in good working order. No one will offer your money if hackers and thieves can easily take the money. But, implementing security features within a FinTech application isn’t easy. A lot of times, FinTech developers are faced with difficulties improving user experience since they must implement KYC and multi-factor authentication as well as other security protocols. The answer is to establish a flow that guides the user through the registration procedure. When it comes to the multifactor authentication method, many programmers would prefer to utilize OTP as well as biometric verification.

Some of the questions FinTech developers should be asking themselves is Am I looking for your crowdfunding app to connect to other crowdfunding platforms as well as supply APIs to them? Do I wish for my app to be able to send tax receipts or documents? Should I develop a native app or a hybrid? What mobile platform should I select to build my application’s MVP?

4. Social Network Sharing

As the name implies, the real treasure of Crowdfunding is in the Crowd. However, finding the appropriate crowd is the most difficult task for crowdfunding websites. The most effective place to promote your crowdfunding platform is social media.

GoFundMe GoFundMe, an online platform for small-scale fundraising has found that fundraising campaigns that are shared on social media are more likely to generate three times more funds. Therefore, it’s an effective strategy to let users post the fundraising campaign through social media. This will give you exposure to a large number of people, and the fundraisers will receive more funds which is a win-win.

I’d suggest that you make this feature available on more than one social network such as Facebook, Telegram, LinkedIn, WhatsApp, etc. Users would be given the possibility to share with their contacts about crowdfunding campaigns they like on their preferred platform.

The Methodology to Build successful Crowdfunding Apps

The process of developing a crowdfunding app is divided into eight distinct steps. Each step is essential to the successful development of the application.

Set Your Goals: 

While it is essential to know what you want for your goals, it’s the precise business plan that is important most. 

The answers to these questions will assist you in forming an effective business plan for your Crowdfunding Apps:

• What can people do to make them want to make use of your application?
• What is the USP of your app to raise money?
• What challenges do you think your crowdfunding app could be able to
• What makes you stand out from the rest?

Conduct market research 

This includes competition analysis, user analysis, as well as the political and economic environment of the market you want to target. It is important to determine your top competitors, analyze the features they provide and then compare your approach and develop your unique selling point that will be the distinctive advantage of your crowdfunding application.

Create Wireframes and UX 

It is crucial to develop mockups of your crowdfunding app. This will allow you to understand the user flow and understand the direction your app can take. The technical term used to describe it is known as information architecture. which is a system that reflects all possible user experiences. It is possible to use Axure, Mockingbot, Sketchapp as well as other tools that are extremely efficient in the creation of user interfaces.

Develop App Architecture and Build Backend

The foundation of a crowdfunding app built plays a major impact on the security and performance of the application. The architecture covers all aspects of your mobile application including UI, Database Workflow, APIs from third parties, and many others. Check out the following images to learn more about what an app’s architecture is like.

After you’ve built the structure then you’ll develop the backend for your crowdfunding application. This is a lengthy procedure that is crucial to ensure the optimal performance of your Crowdfunding Apps. Developers will develop applications using the techniques described in the app’s structure.

You have two choices available when it comes to creating an online backing end for your crowdfunding application or the SaaS service (i.e. AWS Mobile Hub, Firebase, Cloudkit, etc.) or creating your backend entirely from the beginning from scratch. I would recommend the first option because it will save you time and money to develop standard features for your crowdfunding application. The latter option allows the user to modify their application with more personal features, however, this is more expensive.

Frontend Development

 The things that show on the screen of the app are an aspect of front-end development. The developers replicate the designs that design teams created in the UI/UX design phase. They will make use of technology such as HTML, CSS, and JavaScript to design stunning user interfaces. They also use internal APIs that were developed by developers in the development of the backend.

Testing

 After all phases of development have been completed the quality analyst team checks the functionality of the application and determines where it is off about the specific requirements document. It is important to note that testing software will be the largest and most critical component of the procedure for developing software.

Once the Crowdfunding Apps have been successfully tested and any raised mistakes are confirmed by the team responsible for development then it’s time to run it once more to confirm that there aren’t any bugs. Once the crowdfunding app is complete, it’s time to go live.

Conclusion

The process of creating a successful Crowdfunding App isn’t rocket science. If you follow the above procedure and guidelines to get your app up and running within a few months. If you are finding it difficult to manage the IT infrastructure needed to build your crowdfunding application it is possible to outsource the task to Brisk Logic.

We’re experts in developing FinTech solutions and are aware of the best practices in Crowdfunding Apps, as well as investing in software creation.