Crowdfunding websites and mobile app are excellent investment targets for startups or new projects. Users use these Crowdfunding websites to find investors for their website and on the other hand, donators can support their favorite product, video game, film, or music. The owner of these websites also receives benefits such as a small portion of the donated amount which makes it a great business opportunity too. If you are also thinking about How much it costs to develop a Crowdfunding website and mobile app in 2020 so you can enter the Crowdfunding market to earn the profit. Welcome, today we are going to share with you How much it costs to develop a Crowdfunding website and mobile app in 2020.
Some of the common types of Crowdfunding websites
Donation Crowdfunding is the best option for small and local businesses to get financial support in order to kick start their business. The way it works is simple, the business will ask money to start their operation and people show their support by donating and asking nothing in return.
In the Debt Crowdfunding, businesses ask people for money to help them in business instead of going to banks. The process works pretty simple as a peer to the peer loan agreement. The lender is paid back their money with interest.
Equity Crowdfunding works the same as companies going to IPO. The investor receives a small portion of the company in return for their money. The funding capital is used by companies to move their company forward.
Reward Crowdfunding is maybe the most well-known type of crowdfunding. It is made popular by sites like However, Kickstarter and funders. Investors are offered products, services, or other gifts in exchange for a set donation amount.
Let’s take a look at some of the most famous Crowdfunding websites
Kickstarter was launched in 2009 and since then it has brought 15 million people’s ideas to life by generating $3.7 billion.Identically, Kickstarter has funded more than 143,000 projects since its foundation. In the case of a successfully funded project The Kickstarter receives a 5% charging fee. The kickstarter also have crowdfunding website and mobile app.
Indiegogo was founded in 2007 by Salva Rubin and Eric Schell. The Crowdfunding platform has raised more than $1 billion for 650,000 projects all around the world. Investors receive equity, offer security, cryptocurrency sales, and revenue sharing. The platform uses charges that are %5 same as Kickstarter.
Crowdsupply was founded by Lou Doctor in 2012. The platform has claimed on multiple occasions that they offer double success rates than Kickstarter and Indiegogo. The average rate of successfully funded projects is 76% with an average of $66,000. They offer multiple plans for startups but their standard plan is at 5% commission.
The platform was founded in the same year as Crowdsupply in 2012 to help businesses from all around the world to fund and grow their businesses. They have a community of 200,000 entrepreneurs and investors offering equity funding which allows the company’s owner to sell its shares. The standard fee to use the platform is $299 per month and $499 per month and free plans.
Patreon is a dedicated crowdfunding website for creators. Since it’s ince[tion in 2013 Patreon has paid over $350 million to creators from all around the world. The content creator such as musicians, YouTuber, writers, artists runs a special membership plan for exclusive content. The processing fee for Patreon is 5%.
Chuffed was founded in 2013 in Australia by Prashan Paramanathan. The website is dedicated to global causes such as animal protection, women’s rights, hunger, etc. The processing fee of Chuffed is paid by donors which are 3%.
Fundable allows small businesses to get money by selling their products, taking pre-orders, selling merchandise, and from accredited investors. Although there is no success fee for fundable users, they have to pay 3.5% + $0.30 per transaction.
SeedInvest allows companies to offer equity and convertible note funding in return to investors. Most of the companies SeedInvest works with are early stage, professional, and promise high-growth. The platform charges are 7.5%.
Crowdcube is another crowdfunding website that allows companies to offer equity in return for investment. At first only family members, friends and someone you know can invest. Once the 20% target is done your business can access the Crowdcube’s investor community. Although the posting is free once you have reached your goal the platform will deduct 7% of the total amount as a platform charge.
- The development company: Hiring a company from a developed country such as the USA and Europe will cost you around $200 per hour whereas a company from a developing country such as India will cost you around $40 per hour.
- The total number of features and complexity of the app: The total number of features you need into your app will also affect your development cost.
- The complexity of the UI & UX: The better and smooth UI & UX you will want into your app the costlier it will be.
- The total number of supported platforms: If you want your mobile app to support both Android and iOS then the final cost will increase accordingly.
After taking all the factors into account it is safe to say that your crowdfunding website and mobile application will cost you anywhere between $20,000 to $150,000.
Looking for a development company
Tech Pathway is India’s one of the top leading app development companies. We provide on-demand solutions while taking everything into account that our clients need. We have a team of experienced developers and designers that have prior experience in the Crowdfunding website and app development.