Crowdfunding is a process of raising small amount of funds from different ventures or from a large number of people. This is among one of the best ways to invest money and to get funding for the growth of the business. A lot of well-established business support new business ventures and finance individuals with a creative business idea. Now, with the advancement of technology one can acquire the funds online by the crowdfunding Sites platform.
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The term ‘crowd’ refers to people, business or organization which provide fundraising the business and in return, they will get the potential amount in the form of profit. On the other side, the word crowdfunding means the collective fund of the friends, family, customers, individual and investors via online.
The entire process to get funds via online is extremely simple. Any business or individual has to post their business plan and project details on a Crowdfunding Sites like Kickstarter. It saves a lot of time of investor and businessman’s and brings them together to invest money wisely. Crowdfunding websites like Kickstarter, Indiegogo and GoFundMe create thousands of opportunities for entrepreneurs and raise millions of dollars to invest in the projects.
According to Statista, the Crowdfunding platform Kickstarter Success rate as of January 2019 is 36.63%.
There are various types of crowdfunding available one can choose as per their preference and desirability.
Investment-based crowdfunding: – Investment-based crowdfunding refers to raising funds from the crowd or by internet-based platform through which user invest in a business and receive a stake in return.
Loan-Based Crowdfunding: – In this user gives the loan to the individuals or companies for the return of a set of interest rate. This funding is also known as peer to peer or peer to business lending.
Donation-Based Crowdfunding: – It’s one of the least complex crowdfunding. This indicates the amount donated to a person or charity. In this type of crowdfunding, individuals donate money to a charity or to a cause without expecting nothing in return other than the satisfaction.
Reward-based Crowdfunding: – In reward-based crowdfunding entrepreneurs solicit the financial donation from individuals in return for a product or services. It helps in transforming a promising idea into a beneficial result.
Equity-Based Crowdfunding: – In equity-based crowdfunding investors invest money in to support the company and in return, It opens an opportunity and allows the investors to become a part owner of your company.
Crowdfunding is a new online marketplace offering opportunities to both the investors and the individuals who need funding. From its functionality with rich features everything costs differently depending on the requirement or the desirability of features. It’s such a daunting task to give the exact amount as the cost of building a crowdfunding solution is not fixed.
There are certain things which impact the crowdfunding development cost like:
Basic Requirement
Specification
Features and Functionalities
Modules
Relational database
Programming language
To build a crowdfunding solution like Kickstarter, Indiegogo and GoFundMe one needs huge investment. It’s a compelling way to raise money while customers are supporting your product. Therefore, this platform development cost cannot be fixed and developing the website from scratch can be very expensive. We can provide you with the crowdfunding script cost which is approximately somewhere around $400 to $800.
We at BR Softech provides with readily available clone-scripts. These scripts are error-free, ready to use and pre-tested. You can rest assured about the quality and the performance. Clone script cost also may vary depending on the custom features you want to implement and functionality.
Successful Crowdfunding Sites like Kickstarter requires a powerful feature to empower the website. The phenomenal growth of this platform depends on its unique features. The emergence of technology has made this platform advance and has increased peoples’ expectations. To meet the expectations of thousands one must consider these features.
Access to user-friendly, powerful CMS after login.
Rich text editor for campaigns
Option for potential investors to ask the question regarding their issues.
A dedicated section to share product details.
A dedicated section for videos, graphics, and updates to describe the project details
Integration of social media profiles
Scheduling and advanced option
Campaign photo gallery
PIn layout for the campaign with Sort, Search, and filter option
Option to share regular updates.
Offer rewards to investors for encouraging
Funding Page list of current investors
Acknowledge the contribution of fundraisers
Streamline the checkout process
Donation report for admin
This feature will become the core of your website and allow people to make money just like Kickstarter and GoFundMe. These features will help you create a powerful crowdfunding website and help raise more and more money.
There are two main schemes which offer tax breaks
1. Enterprise Investment Scheme (EIS
2. Seed Enterprise Investment Scheme (SEIS).
If you’re the person who set up the crowdfunding account and the beneficiary, then you are liable to pay tax. However, if you are working as an agent and the beneficiary is someone else then the beneficiary will be liable to pay the tax.
Crowdfunding allows business to raise funds, it’s a way for people, business, and charities to earn money. Mainly it is collecting a small amount of money from different investors for a specific business venture or project. This platform connects various people from all over the world and allows them to money from investing money.
If you get something wherein you want to invest some money, then there are certain things which one should consider.
How much fund the company wants to raise
Till now how much it has raised
How much shared in the business offered
What the money will be used for?
For what purpose the money is utilized for
The duration of the pitch has opened for
Till now the number of people who have already invested
What will then receive payment in return for the purpose of investing
The investment is only fruitful if the business raises the full amount. You might have to register on the platform to know about all the nitty gritty of the platform. It’s a new concept wherein people see the potential for profit and rewards.
