There’s a good chance you’ve heard of and even used programs like Patreon, GoFundMe, and Kickstarter. These are all crowdfunding platforms. Transaction value in the Crowdfunding segment is expected to show an annual growth rate (CAGR 2022-2027) of 2.71% resulting in a projected total amount of US$1.29bn by 2027.
Agree; quite impressive statistics, and of course, many people understand that now is the moment to start working in this field. In this article, we will understand what crowdfunding is, its types, and the essential features of a crowdfunding platform.
What is Crowdfunding, and How Does it Work?
Crowdfunding is about raising capital to finance a new project from others. This is usually a large group of people, including investors and companies. Today, this happens in most cases via the Internet. There are different methods and types of crowdfunding. If we talk about techniques, there are two options here.
The first is when the end users interested in the startup finance the project, and the second is when companies finance what they consider profitable startups. In terms of types, Donation Campaigns, Equity Crowdfunding Networks, Reward-Based Crowdfunding, Peer-To-Peer Collaboration, and Royalty-Backed Crowdfunding are considered here.
There are many of them, so it is worth getting to know the features of each in detail before starting something of your own. If we turn to the issue of program development, then we need to understand that the cost can reach high indicators depending on the business’s price. Creating a crowdfunding campaign is the stage from which crowdfunding begins. It contains all the essential information about efforts, what he will do, and the need for funds. The name of the creator will also be indicated.
Critical Features of a Crowdfunding Platform
1. Administration Panel
Let’s look at what the main administrator can do through this panel. One of the main points is that it provides an interface for editing, deleting, and adding data, along with managing user accounts. So, for example, the user can adjust the location of advertising banners, maintain catalogs, create a collection of gadgets, and much more. And, of course, view the total amount of donations.
2. Backend project management
Creators should take care of the list of income, commissions, and rewards. A reliable and quality reporting feature is a must-have for a crowdfunding website. Why is this so important? All because the portal developer needs this analytics data to make the right changes to the project and improve it. Of course, built-in managing features should be easy to use. A backend project supervisor is a must-have element for activity management.
Crowdfunding programs receive a lot of personal information about users. These include email addresses, phone numbers, bank details, and insurance policy numbers. As such data grows, so does the amount of responsibility.
Therefore, when developing an application for crowdfunding, it is worth engaging qualified and reliable mobile app development services that can take care of cyber security and the security of user data.
4. Payment gateway
The basic idea of crowdfunding is donations and payments. Therefore, a well-established payment gateway is vital to manage the payment history. It will contain basic information about the project, including the time and date of the transaction, payment ID, payment history, and project status. Your company’s goals should match the functionality of the payment gateway.
5. Introduction of modern technology
The latest technologies are an essential aspect that must be considered by companies that create applications for crowdfunding. This will allow them to be competitive and enjoy the demand of users. One such technology is Machine Learning and Artificial Intelligence. They help applications run faster, more accurately, and productively, considering customers’ needs.
Author’s bio: Anastasiia Lastovetska is a technology writer at MLSDev, a software development company that builds web & mobile app solutions from scratch. She researches the area of technology to create great content about app development, UX/UI design, tech & business consulting.