App Development via Crowdfunding — A Listing of the Top Sites
Similar to any startup, app development is highly resource-oriented segment. Specialized tools such as Mac machines and specialized knowledge base such as iPhone and Android app development skillset are pre-requisites to take a great idea from concept to reality. However for all these to merge profitably, it requires significant business capital. In many cases, bright ideas have failed to see the light of the day due to shortage of funds that prevented high quality app development and deployment on the app market place.
For development agencies, who have brilliant app ideas but do not have the funding to back their vision, can now explore crowdfunding as possible avenues to generate the necessary capital and see their dreams take flight.A simple Internet research shows quite a few crowdfunding angel investors ready to support developers’ ideas and turn them into successful apps. Here are some good sites that provide the requisite financial help to the emerging entrepreneur and support high quality app development –
Kickstarter — This is the superstar among crowdfunding sites. Till March 2014, it has crossed the enviable mark of $1 billion in pledges. The site shows 45% of the Kickstarter projects completing their fund raising goals, with some like the Pebble e-paper watch getting financial support worth over $10 million. It has already backed more than 55,000 projects in 5–6 years across all continents and 230 countries.
Pricing — It charges 5% on completed fund collection and payment processor will charge 3% — 5% of the total amount.
Appbackr — It was created solely for mobile apps development and promotion crowdfunding, owing to shift in smart device user preferences and emerging success stories in app development.People who pledge funding will get a portion of the profit booked by app upon release in app market.Developers use this approach in their marketing efforts to boost their visibility in the top 10 or top 25 lists of apps to improve adoption rates
Pricing — Developers earn 54% profit on in-the-works apps or 26% profits on released apps.
Indiegogo — Goes beyond the feature set of Kickstarter and allows developers to choose their own funding model. They can opt from fixed and flexible funding approach. Fixed funding works on all-or-none basis i.e. backers are refunded if you don’t meet your funding goals. Flexible funding allows you to keep the fund raised by a specific timeline even if goals are not met.
Pricing — Under both approaches, developers get 4% of the profits and backers get perks such as free app downloads before release
AppsFunder — Set up in 2012, it allows developers to set two milestones and help backers see what stage the work is in and the progress made from there. It works on an all-or-nothing premise where developers get 80% of milestone amount and 20% upon release for successful funding. For funding that does not reach the goals, developers get nothing. An exciting feature is the ability for the site’s experts to rate an app. Such ‘AAA’ rating (AppsFunder App Authorities) help backers to convert funding into an insightful decision making process
Pricing — Developers get 80% of the milestone payment and 20% upon release for successful campaigns
Originally published at: MobDevApp