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 a plenty of marketing techniques to influence the behavior of the potential donor. Important to look for factors that are being use 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 an 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 list on Kickstarter such as Pigzbe outperform Oculus Rift, Pebble Time and others.
Lets Discuss 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 estimate that 6,445,080 number of crowdfunding campaigns are host globally in 2019. Also, the crowdfunding market is expecte 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 relie upon to additional drive the crowdfunding market’s 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. And where 37% of gaming campaigns have been successful in raising funds. Technology campaigns made up of 30% of successful campaigns.
- Many companies, such as Kickstarter PBC, Indiegogo Inc., GoFundMe Inc., Crowdfunder Inc., and Alibaba Group. Those are offering their platform for crowdfunding to raise funds for various initiatives. In October 2019, the crowdsourcing platform Kickstarter register over USD 4.5 billion, which has been pledge 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.
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 manage 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 are 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.
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 all the benefits.
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 business.
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.
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. And if other people liked the idea, they could pledge some money to help bring it to life.
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.
Start website like Kickstarter
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 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.