The crowdfunding industry is expected to witness a growth at a CAGR of over 17% during the forecast period (2021-2026). Crowdfunding involves requesting many limited quantities of cash from an unclear gathering of individuals known as the group. Crowdfunding platforms could be middle people between donors and beneficiaries. This intermediary could take advantage of plenty of marketing techniques to influence the behavior of the potential donor. Therefore it is important to look for the affecting factors that are being used on crowdfunding platforms such as social media platforms for raising funds.
With the UK’s fintech industry receiving over $3.5 billion in investment in 2018 and crowdfunding becoming the most increasingly popular investment type for fintech companies, the outlook for 2019 appears positive. With the right backing, we may even see an emerging fintech company that’s listed on Kickstarter such as Pigzbe outperform Oculus Rift, Pebble Time and others.
Lets Discusss Some Important points about crowdfunding
- Moreover, according to Fundly, the worldwide sum brought by crowdfunding produced up in the thirties of USD billion out of 2019. Further, it has been estimated that 6,445,080 number of crowdfunding campaigns were hosted globally in 2019. Also, the crowdfunding market is expected to triple by 2025.
- The online media stages are going about as a liberated from cost advancement assets for crowdfunding organization to have a worldwide reach to crowds. It has empowered the organizations to make their pre-selling and marketing for products at more comfort. Thus, the dynamic crowdfunding efforts via online media are relied upon to additional drive the crowdfunding market development in the coming future. According to startups.com, 12% of the Facebook share, 3% of Twitter shares, and 53% of email shares convert to donations.
- The company more towards in the gaming industry are seeing the most successful fundraising campaign to raise fund. Also, technology campaigns are able to attract crowdfunding. According to the Kickstarter crowdfunding platform, it raised over USD 1 million, where 37% of gaming campaigns have been successful in raising funds and technology campaigns made up of 30% of successful campaigns.
- Many companies, such as Kickstarter PBC, Indiegogo Inc., GoFundMe Inc., Crowdfunder Inc., and Alibaba Group, are offering their platform for crowdfunding to raise funds for various initiatives. In October 2019, the crowdsourcing platform Kickstarter registered over USD 4.5 billion, which has been pledged to different projects.
- With the recent outbreak of COVID-19, the crowdfunding market is witnessing significant growth, especially donation crowdfunding to support and help communities, people, and many organizations fight this pandemic. For instance, in April 2020, Facebook launched “Facebook Fundraiser,” a platform where people can raise funds for the charity to help others during a pandemic.
- In April 2020, in India, various crowdfunding platforms raised worth over INR 100 Crore to financially support people in need. These online crowdfunding campaigns help stranded migrants, daily wage laborers, transgender communities, circus artistes, Uber drivers, Swiggy delivery personnel, rural artisans, dancers, and freelance workers during the pandemic.
A thriving boost in crowdfunding growth
Real estate crowdfunding has boasted a sizable growth rate in just eight years. As it currently stands, the global real estate crowdfunding market is expected to reach a value of around $868,982 by 2027, with a compound annual growth rate of around 58.3% between now and 2027.
While real estate crowdfunding is a relatively new concept, it’s managed to develop alongside new technologies, helping real estate developers match with needed funding to expand. Crowdfunding continues to evolve to offer more convenient ways for investors to seek out properties they might be interested in.
The Benefits of Crowdfunding
From tapping into a wider investor pool to enjoying more flexible fundraising options, there are a number of benefits to crowdfunding over traditional methods. Here are just a few of the many possible advantages, which we’ll cover in greater detail later in this guide:
- Reach– By using a crowdfunding platform like fundraiser, you have access to thousands of accredited investors who can see, interact with, and share your fundraising campaign.
- Presentation– By creating a crowdfunding campaign, you go through the invaluable process of looking at your business from the top level—its history, traction, offerings, addressable market, value proposition, and more—and boiling it down into a polished, easily digestible package.
- PR & Marketing– From launch to close, you can share and promote your campaign through social media, email newsletters, and other online marketing tactics. As you and other media outlets cover the progress of your fundraise, you can double down by steering traffic to your website and other company resources.
- Validation of Concept– Presenting your concept or business to the masses affords an excellent opportunity to validate and refine your offering. As potential investors begin to express interest and ask questions, you’ll quickly see if there’s something missing that would make them more likely to buy in.
- Efficiency– One of the best things about online crowdfunding is its ability to centralize and streamline your fundraising efforts. By building a single, comprehensive profile to which you can funnel all your prospects and potential investors. You eliminate the need to pursue each of them individually. So instead of duplicating efforts by printing documents, compiling binders, and manually updating each one when there’s an update. So, you can present everything online in a much more accessible format, leaving you with more time to run your business.
How to Start a Crowdfunding Website Like Kickstarter
Today, just on this crowdfunding platform, there has been $4,770,949,649 pledged to almost 200,000 projects.
The number of crowdfunding platforms is growing, as well as their revenue. But we have decided not to reinvent the wheel and take this platform as an example to show you all the benefits and pitfalls of crowdfunding development.
You will see that even giants such as Kickstarter need some time to grow. And this is OK! Below we have a number of tips on how to start a crowdfunding script.
A crowdfunding software is a platform that is used to host and promote various startup projects on the Internet. In other words, this is a place where people can post their business ideas in order to gather money for their implementation.
Different crowdfunding platforms may offer various rules for campaigns and backers, but, in today’s blog post, we choose to focus on the first-ever and the top crowdfunding website – Kickstarter.
Kickstarter launched its service in the year 2009 based out of Brooklyn, US by Perry Chen and 2 others. The Company’s Mission Statement Says “ Help bring a creative project to life”. The company with its concept received numerous awards including an award of “Best Website” and Best Invention of the year 2010 by reputed magazines. Its popularity soared and it expanded to the UK in 2012, Canada, Australia and New Zealand in 2013. It thereafter expanded to Denmark, Ireland, Norway, and Sweden in 2014. With an intention to grow further it expanded to Germany, France, Spain, Austria, Belgium, Italy, Luxembourg and Switzerland in 2015, Singapore, Hongkong, Mexico in 2016 and finally Japan in 2017.
The raised funds out of a campaign or a project on Kickstarter can be in any native currency. Currently, the company offers US Dollar, Canadian Dollar, Australian Dollar, Euro, Swiss Franc, Danish Krone, Pound Sterling, Hongkong Dollar, Japanese Yen, Mexican Peso, Norwegian Krone, New Zealand Dollar, Swedish Krona and Singapore Dollar. With this currency, the creator can easily raise fund without any conversion factor and thereby saving money for the fundraiser. In case the Creator resides in any other country and desires another currency, the same can be converted as per charges applicable for conversion as per Bank and country norms. But how does Kickstarter work? Let’s understand that.
Kickstarter is a crowdfunding website where creators can raise funds to bring their innovative ideas to life. It all began in 2002, when Perry Chen, a cofounder of Kickstarter, wanted to organize a Kruder & Dorfmeister concert in New Orleans. The concert didn’t take place, but the Kickstarter idea was born. Perry came up with the concept to create a space where anyone could share their ideas with the public (for example, to organize a concert), and if other people liked the idea, they could pledge some money to help bring it to life.
Start website like Kickstarter
Kickstarter is a crowdfunding website that generates funds for individuals or companies. And those companies who have come up with a prototype or a working model of any product or service. The funds help the innovator or the company to convert the prototype into an actual product that is available in the market.
It is always necessary to for an innovator or person with a great prototype or an idea reach the mass in form of a physical product or service. That ensure that the concept grows from lab scale to position where it reaches the doorstep of the Customer. An idea is of no use if it cannot be materialized.
For a long time, the idea remained just that — an idea. Then everything changed in 2007. That’s when Perry Chen met Charles Adler, a designer who offered to create a website. The work was finally completed in 2009, and in April of that year, three friends officially announced the launch of the Kickstarter website.
Since the launch of the Kickstarter website, 18 million people have backed projects, 18,000 of which have been successfully funded. These numbers are incredible. Let’s take a look at how Kickstarter evolved to achieve such success.
One of the most important challenges you face when developing a website like Kickstarter is selecting a highly qualified development team. Your choice of the team will determine how user-friendly your product is. If it’s going to be stable and scalable and if you can easily add functionality to it.