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5 Must-Have Features of a Crowd-Funding Website

Jun 10, 2022  |  

The introduction of internet crowdfunding sites has made raising cash for your company concept, charity cause, or personal needs easier in the digital era. To date, these platforms have helped individuals raise more than $34 billion throughout the world, thanks to simple features that make fundraising easy for both fundraisers and supporters. There is a crowdfunding platform for you, whatever your motivation for raising funds is.

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The 5 Best Crowd-Funding Platforms of 2021  

  • Indiegogo

Indiegogo was founded in 2008 by Danae Ringelmann, Eric Schell, and Slava Rubin. Today, more than 10 million people visit the Indiegogo site monthly, where about twenty thousand campaigns are launched every month. Indiegogo can provide you with the tools to connect you with social media platforms such as Facebook and Google to promote your campaign. 

  • Seed Invest Technology 

SeedInvest Technologies' headquarters are in New York City and it was founded in 2012.

The company had a goal of providing a way for investors to provide support for early-stage startups. Since this platform is for those who want to raise money for startups, once you sign up for the platform, you shall have to fill out an application and go through a due diligence process before being approved as a fundraiser. 

  • Mighty Cause 

Mightycause was founded in 2006 as a fundraising platform to help people raise money for their causes. The flexibility given to people to raise funds gives this platform the edge in seeking donations. It has till now, helped hundreds of thousands of causes to meet its targets. Mightycause charges a 1.2% transaction fee on the money raised plus 29 cents per transaction.  

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  • StartEngine 

This platform was created for the layman who wants to invest in early-stage startups. You can start investing in any company listed on the website and start with a little as 100 dollars. To help people make informed decisions, the company’s financials for the past year are stated along with the most important performance indicators like price per share, the number of investors, and more. 

  • GoFundMe 

GoFundMe was launched in 2010 and since then has become the largest fundraising platform online. You can set up your GoFundMe page in three simple steps. Firstly, you can state the amount of money you want to raise. After that, that start telling your story by adding pictures and videos. Lastly, start sharing your details on social media platforms like Facebook and then email and text messages.

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Advantages of Crowdfunding


  • Better Than Traditional Fundraising  

When you're a startup focused on growing your company and seeking seed funding, you may not be able to devote the time and attention that traditional funding requires. Setting up a successful crowdfunding campaign on Fundable or another platform is significantly more efficient and effective in getting your message out to the appropriate people than asking for a loan or searching out accredited investors on your own. 

  • It’s a Platfrom Built on Social Proof and Validation 

A strong and highly visible crowdfunding campaign can provide that social proof of your validity and will help you and your campaign/startup move forward.

When people start taking interest in your idea or what you’re selling, this is seen as social proof that what you are trying to achieve is clear as day in front of your potential funders and also that people believe in you and your business.

  • Crowd-Sourced Brainstorming Refines Ideas   

When you start asking people to fund you, people will take the liberty of poking holes in your plans since it's their money and you shall have to field all the tough questions regarding your plans going forward. The best way to tackle constructive criticism is to take it in stride and always keep evaluating the best way to march onwards. Since crowdsourcing takes you so much closer to your funders, it is essential that this feedback is met with a flexible mindset and a  proactive approach and all this is used to fine-tune your ideas moving forward.

You never know from where the big ideas can emerge, it can even come from people that aren't even on your payroll.

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5 Must-Have Features of a Crowdfunding Website


  • Simple Application and Quick Signup 

From the very beginning, the most wanted features of a crowdfunding website is one that provides a smooth experience.

If your potential clients and backers are perplexed when they arrive at your platform, the chances of them choosing to continue are slim. The top qualities of a fantastic crowdfunding website are a sleek style, clear design, and straightforward navigation

Immediately revealing your terms and conditions is essential for developing long-term relationships with your audience and fueling project after project.

  • Powerful Account Management 

The account management system should be crystal clear from the very beginning since a lot of investors are involved. People would want to know the amount of money being invested and the money being withdrawn and what specifically it's being used for.

A robust account management system needs to be one of the top features of a crowdfunding website and should be able to the many inputs of the investors.

A typical investor would like the finger on the pulse of the campaign and would need to know the campaign health on every stage, from start till finish.

  • Platform Backend and Project Management 

As the campaign owner, you are entitled to scoop the rewards for your hard work and dedication.

All rewards, investors, revenue generated and commissions you earn are things that need to be handled and managed from your end. Without the proper analytics in place, it can become quite difficult to generate reports and justify spend and what happens, in the end, is the loss of confidence from your supporters. 

One of the most important features of a crowdfunding website should be a set of management tools: dashboard with pending users, projects, and donors; 

  •  list of users and the amount of credit required; 
  • ongoing projects by category that you can edit or delete; 
  • payment logs with corresponding gateways; 
  • message board.
  • Payment and Marketing 

Mangopay, LemonWay, and GCEN are some of the payment gateway features of a crowdfunding website available for you to implement in your project. A payment history option is provided to you so that it becomes easier for you to track where your money is coming from and the date and time of the transaction. These payment gateways are user-specific so care should be taken before implementing one with your campaign or business idea. 

The two main methodologies used to generate funds are the “flexible funding” method and the “ all or nothing” model. 

In the flexible funding model, payment is not based on the project being completed in its entirety before being funded by the donors. The creators can still get money from investors without completing the whole project.

The “all or nothing” model, as the name implies, expects the creators to finish the whole project or meet the goal before being allowed to be funded.

  • Trust & Safety 

Compliance monitoring tools are essential features of a crowdfunding website and are essential when dealing with payment from customers since regulators will come after you if anything goes wrong. The Securities and Exchange Commission enforces transparency and supports crowdfunders with supporting documents. 

Knowing your donors is also crucial in managing your campaign and it is crucial to have a thorough process in place to avoid illegal donors and terrorist financing.

Sharing your company’s information is also crucial to potential donors since it helps in identifying legitimate campaigns since crowdfunding scams are everywhere nowadays.

It's always a great idea to develop trust from the start to avoid any hassles down the line.

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FAQs 

What is Crowdfunding? 

Crowdfunding is an online method of raising funds for a creative project, a commercial concept, or a personal cause. Crowdfunding platforms are used by startups, small companies, organizations, and regular individuals to connect with others who want to support them and help them meet their financial goals for launching a business or product, or supporting their cause.

How does Crowdfunding work? 

When you use a crowdfunding site, you must first register and create a profile. After that, you may establish your own personal campaign or fundraising page, where you can tell your narrative about why you're raising money and what you need it for, establish a fundraising goal, and begin gathering funds. You can begin collecting funds within days, depending on the sort of crowdfunding platform you use. Thirty-day campaigns are available on several websites (or longer). Funds are transferred straight into the bank account that you attach to your fundraising account when you register. 

What Can Crowdfunding Be Used for?

The funds you raise through crowdsourcing must be utilized for the same reason you started on your crowdfunding site with your contributors or investors. People may use crowdfunding to help pay for medical emergencies, small companies may use crowdfunding to continue growing in exchange for goods or services they give, organizations may use crowdsourcing to continue supporting their goal, and so on.

What Are Expected Crowdfunding Costs? 

Most crowdfunding platforms charge a percentage of the total money raised plus a transaction fee on every transaction. For the companies included in the article, the percentage changed ranges from 3 to 6 percent. 

Conclusion 

User experience is essential but an interesting UI/UX design is not the only criteria when it comes to creating a reliable platform. Making your platform understandable to all users and implementing flexible tools for backend management, taking security seriously, and planning future upgrades depending on the crowdfunding business model, will be vital for campaign health. 

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