Crowdfunding Platforms for Apps
Crowdfunding Platforms for Apps
By Julia Salem
November 19, 2012
Crowdfunding has evolved into an extremely popular way for entrepreneurs and small companies to raise money from the general public. This method of funding has not only become a way to raise money, but has also allowed companies to realize the value (or lack of value) the product can bring to customers. Companies that do not successfully receive crowdfunding on a project may realize the need to pivot or scrap the project all together. Successful crowdfunding projects have hard evidence that potential customers truly need the product the company is providing. In some scenarios, the ability of a company to receive funding on a crowdfunding site could attract the attention of a real investor. One of the risks of sharing an idea or product on crowdfunding sites is that it could be copied or stolen before the original company has the chance to gain traction.
While many companies decide that crowdfunding may not be right for their product, others, like many mobile app companies, see this as the best way to get their app started. There are many crowdfunding sites, but many do not allow mobile apps to raise money on their site. The growing popularity of mobile apps has encouraged developers to create and attempt to crowdfund their apps. The following is a list of crowdfunding platforms that do allow, or focus on, mobile apps.
Appbackr is a wholesale marketplace for mobile phone apps. The developer posts an app or app-in-development to the Appbackr marketplace. Backers can purchase a bulk of apps wholesale, and the developer receives immediate payment. Backers can view monthly sales reports and the daily run rate of purchased apps on the Appbackr dashboard. This is a good way to get a small amount of cash up front for marketing purposes. Appbackr has 30 listed projects as of 11/2/2012, with the top funding intake being $1,719.
Application Requirements: The developer must be a registered Apple or Android developer.
The idea is much the same as Kickstarter or Appbackr: you post up your app campaign, tell people what your app is going to do, and then you ask for their money so that you can actually create and/or launch the app. One fundamental difference is that your app doesn’t have to reach its funding goal in order for you to get the money from your “backers.” You have the option of choosing an “open” project; if your goal isn’t reached, you still keep the money that people have pledged. Money can be given via PayPal or Amazon payments. You can also use Appsplit to find freelancers who can help you with the development of the app or otherwise help with the idea as a whole. Appsplit has 65 listed projects as of 11/2/2012, with the top funding intake being $2,000.
AppStori is a crowdsourcing and funding platform that connects mobile app consumers with developers before an app hits the app store. At the core, AppStori believes that better apps will come to market through a collaborative “dialog” between developers and consumers. On AppStori, developers can raise funds, find beta testers, build an audience, advertise their needs and wants, and create an overall “Stori”, allowing friends, family, and consumers to be part of the team that brings an app to market. AppStori has 13 listed projects as of 11/2/2012, with the top funding intake being $2,787.
Application Requirements: 1) Must be mobile dependent, 2) no porn, gambling or firearms.
IndieGoGo offers anyone with an idea — creative, cause-related, entrepreneurial — the tools to build a campaign and raise money. Project categories include gaming, film, design, education, mobile, and technology. IndieGoGo integrates with Facebook, Twitter, and other social media platforms. The site offers a widget to showcase your campaign on your website. Unlike many crowdfunding sites, you keep all the money you raise, even if you don’t meet your goal. You can also track contributions with the analytics tools and stay on top of fulfillment with the dashboard. There is a 4 percent fee on the money you raise when you meet your funding goal. Third party payment processing fees also apply. IndieGoGo has 20,000+ listed projects as of 11/7/2012, with the top funding intake being $1,370,511.
Project creators are able to present their visions to a worldwide audience, as the platform recently went global. Pozible has an “all or nothing” approach. Each project owner is forced to set a funding goal and time limit (from 1-90 days) for their idea. If you are unsuccessful in raising your goal during the set time period, all pledges are canceled and the funds are not transferred. If you are able to estimate your projected funding, then this will not be an issue, but the race against time could deter you from your ultimate goal. Pozible has 254 listed projects as of 11/5/2012, with the top funding intake being $15,241.
RocketHub is the world’s funding machine. RocketHub is an international and open community that has helped thousands of artists, scientists, entrepreneurs, and philanthropists raise millions of dollars. RocketHub has 400+ listed projects as of 11/7/2012, with the top funding intake being $103,814.
A social network and crowdfunding platform for entrepreneurs. The in-depth category list allows you to post your business idea specific to its industry. There are currently 36 different categories, many of which cannot be found on other crowdfunding platforms. The unique categories range from home and garden to real estate. By specifying your niche on Rock The Post, your chances of connecting will be maximized. Rock The Post has 15 listed projects as of 11/3/2012, with the top funding intake being $15,115.
Application Requirements: Must be a U.S. resident with a valid social security number and have a WePay account.
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