In days gone by, Crowdfunding was seen as a niche segment in the eCommerce industry. However, a recent research report flipped this by stating:
The Global Crowdfunding market was valued at 10.2 billion USD in 2018 and is expected to reach 28.8 billion USD by the end of 2025, growing at a CAGR of 16% between 2018 and 2025. View full report.
Crowdfunding Business & Its Types
Crowdfunding is raising funds from the masses for a particular venture like a campaign, charity, financial help, startup, etc. It helps small businesses or startups to raise money in exchange for rewards, debt, equity, or nothing at all.
Here are the most common types of business crowdfunding:
- Donation crowdfunding: This type of crowdfunding is run by non-profit organizations. Taking up money from the masses as a form of a donation to help venture & give nothing in return.
- Equity crowdfunding: This is the most commonly used crowdfunding type. You sell a part of your business to an investor(s) and they provide you with the funds to move ahead.
- Debt crowdfunding: Under this one, business owners borrow money from other individuals, instead of from a bank. The amount is borrowed on a set annual percentage rate as that of a bank’s loan.
- Rewards crowdfunding: This type is a recent evolution in the market. The fundraisers offer rewards to the donators in exchange for the donation made. The reward could be in the form of merchandise, gift, product, or service.
The recent increase in popularity of Kickstarter and its contemporaries like Indiegogo, Crowdfunder, GoFundMe, etc had propelled the finance model of the crowdfunding business completely into the mainstream business. People have started taking it seriously & are running a successful business around it.
A crowdfunding marketplace is a platform where multiple prospects can start their crowdfunding project. Every member can choose a funding goal and set the number of days to reach that goal. They can set their own storyline & challenges to share with the audience.
Why will people choose to start their crowdfunding project on your marketplace?
NGOs or local businesses who are looking to start their crowdfunding project lookup for a platform where they can start instantly. Money being the constraint for them, they prefer already established, go-to-use platforms rather than building their own from scratch.
You can build a marketplace to help people share their vision with the communities that can fund them collectively. Turning their dreams into reality. A platform to bring creative minds, love & support together!
Creating a New Wave of Opportunities for Average, Ordinary People
Let’s put together the general steps that you need to do if you are looking to start your own Crowdfunding Marketplace.
🚀 Discover Your Niche
Every crowdfunding platform caters to its own niche- a specific area of interest. You can decide what you want to go for. Research which areas are in demand and will help you grow faster. See what people are funding towards.
Your crowdfunding marketplace should host crowdfunding campaigns for a particular cause to get potential backers. Look for ideas online, for example, Kickstarter. They help artists, musicians, filmmakers, designers, and other creators to host crowdfunding campaigns. On the other hand, Crowdfunder is a community of 200,000 entrepreneurs and investors offering equity crowdfunding.
Similarly, you need to discover the segment you want to focus on. Further, the content & design of your marketplace will be based on this segment.
🚀 Select Crowdfunding Module
Building a marketplace platform from scratch is way too expensive, time-consuming and you may end up pulling out your hair. For rescue comes the ready-to-use modules. It’s best to go for white label Softwares as you can turn the platform into your own brand.
To get your website up & running within weeks, go for SAAS based products. You don’t need a team of developers if you are building up your website using Shopify. They have real-time support to help you on every step.
Search for the apps on their Official App Store that can cater to your needs. We recommend checking out the Crowdfunding X Multivendor Marketplace App. This will help you with creating your own crowdfunding brand which you can also customize to your needs. Know more about it at the end of this article.
🚀 Setup, Launch & Spread the Word
Setting up the theme & content is of course the points to be focused on but the primary focus should be the payment methods. Depending on the region you are based in, you should decide which payment method needs to be implemented.
Make sure the payment service you are using is commonly used around your audience. You can have more than one payment method to stronger the game. Before finalizing, please do run test orders to make sure that the payments are being processed correctly.
Invite creators to create their panels on your marketplace and add their crowdfunding projects. Provide them proper guidelines on how to operate their panels. Also, the terms & conditions must be shared with them before they signup on your marketplace.
With this, there are multiple other things that need to be set up before the final launch. Once you confirm that everything is working as planned, you can start to launch the marketplace.
Crowdfunding X Multi-Vendor Marketplace for Shopify
Creators can register on your marketplace. From their panel, they just need to add their project title, image, goal amount, duration & description of the campaign. They can also add additional details like videos related to their campaign as well as the risk & challenges.
What’s cool is that they can also add rewards for crowdfunding donators. Moreover, creators can also add an amount for boosting the campaign. The admin of the marketplace can also add campaigns on behalf of the creators as well. Check out more!
You can drop your suggestions for further improving this module at firstname.lastname@example.org or raise a ticket at Webkul UV Desk.
Until next time. 👋