Crowdfunding Software Pricing and Custom Platform Development Costs

Launching a crowdfunding platform starts with a choice – develop the platform in-house or choose white-label crowdfunding software. The latter option is less demanding and cheaper, and it usually comes with all the necessary integrations such as payment providers, AML/KYC compliance providers, document management, etc. 

Different crowdfunding software providers offer varying pricing options, and here, we will explore in detail the expected costs for different types of solutions.

While this list is not exhaustive, because not all providers disclose full pricing information and some reveal it only when contacted directly, this list still provides insights on the white-label crowdfunding software pricing vs custom development costs globally. 

ProviderMin. priceMax. priceNotes
CrowdEngine$1,495/monthN/AInvestors are charged a $15 fee per investment. 
DealMaker$20,500 (activation fee) + $2,000/monthN/AAn additional 8.5% fee on all proceeds 
White Label Crowdfunding£2,500/month £5,500/month An advance payment from 3 to 6 months (depending on the plan) is required
TurnKey Lender$500/month (starting price on Capterra)N/APricing depends on licensing model and portfolio size; contact sales for details.
SyndicationPro$400/month – $600/month ($95 per user per month)N/APricing starts at $95/user/month; the provider focuses on tools for real estate syndication, investor relations, and fundraising.
Custom Development$45,000
$230,000+Cost depends on location and team type (in-house, outsourcing, freelancers). USA-based development typically costs around $225,000.
Rewisoft estimate$100,000N/AThe price for a basic solution.
LenderKit Research as of 2020€89,000€200,000+The price depends on the platform’s features, third-party integrations, 

CrowdEngine

CrowdEngine offers a streamlined solution for businesses that are going to raise capital through their existing websites. Their Invest Express plan costs $1,495 per month, and it enables companies to launch an online Regulation D offering with built-in compliance and an investor portal. 

This plan includes the following features:

  • Unlimited investors
  • Compliant investing processes
  • Investor login dashboards
  • Email support.

Investors are charged a $15 fee per investment. 

Users can upload offering documents for approval, set up the funding process, and even add an “Invest” link to their existing website.

The solution is equipped with a one-page dynamic interface. There are built-in dashboards that provide earnings reports, email notifications, and enable distribution management. 

The document manager allows to upload of investor-specific documents in bulk, such as K-1s and earning reports. These documents are available at any time. 

The CrowdEngine’s Compliance Engine supports major U.S. regulations, including Regulation D, Regulation A, Regulation S, investor accreditation, online payments, KYC, and AML procedures.

This solution is suitable for all types of businesses, including SPVs, LLCs, and corporations that want to raise capital while maintaining compliance with regulatory requirements. 

DealMaker

DealMaker offers a comprehensive suite of services for companies that are going to host Regulation CF offerings. Their service package includes the following fees.

  • Activation fees of $20,500, which cover onboarding, due diligence, and asset creation. This includes $10,000 for pre-offering due diligence by DealMaker Securities LLC, $5,000 for infrastructure setup for a self-directed electronic roadshow, $3,000 for consulting and material development by DealMaker Reach LLC, and $2,500 for onboarding services provided by DealMaker Transfer Agent.
  • A monthly subscription fee of $2,000.
  • A 8.5% cash fee on all proceeds, which includes payment processing, transaction, electronic signature, and AML search fees. 

Processing investor refunds incurs an additional charge of $50 per refund.

For marketing services, DealMaker Reach offers a three-month launch phase. Each phase costs $15,000. This phase includes such services as multiple website variations, custom-built API-based checkouts, acquisition, and retargeting ads, email automations, company updates, and webinars. DealMaker Reach also offers within this phase such services as message testing, analytics implementation, weekly strategy and performance reporting, and paid media strategy and implementation on such platforms as Facebook and Instagram, and Google Ads. 

Further, a customer can renew the subscription or subscribe for extended services until the offering is closed. DealMaker Reach includes here unlimited new acquisition and retargeting ads, additional email automation, SMS campaigns, company updates, monthly webinars, and enhanced message testing and delivery strategies. Additionally, this phase includes video production for the campaign, video editing and animations, and paid media strategies for LinkedIn, Twitter, TikTok, and Bong. The service provider also offers partnerships and sponsored content initiatives.

All in all, DealMaker offers solutions to equip companies with the necessary tools to manage Regulation CF offerings.

White Label Crowdfunding

White Label Crowdfunding offers tailored solutions for businesses that are planning to launch their own crowdfunding platforms. Their pricing structure is designed to accommodate businesses of various sizes and with different needs.

The provider offers the following pricing plans:

  • Starter: Begins at £2,500 per month, a 6-month advance payment is required.
  • Scaleup: Starts at £3,500 per month, a 4-month advance payment is required.
  • Enterprise: From £5,500 per month, a 3-month advance payment is required.

Each plan includes a range of features, with higher-tier plans offering more advanced functionalities.

Additional premium features and add-ons are available to further customize the platform:

  • Bespoke Design: £2,000
  • Mobile App (iOS and Android): £9,500
  • Appointed Representative Service: £2,500
  • E-ticket System: £200

TurnKey Lender

TurnKey Lender is a comprehensive platform that automates the entire lending process. It offers solutions for both consumer and commercial lenders. The system encompasses various functionalities, including loan origination, underwriting, servicing, collection, reporting, and compliance management. It caters to traditional creditors, alternative finance providers, and embedded lenders across multiple regions, including North America, Europe, APAC, and EMEA.

Specific pricing details are not provided on TurnKey Lender’s official website. The company offers several licensing models based on portfolio size and platform functionality. This allows businesses to scale and pay only for the features they utilize. For precise pricing information, potential clients can contact TurnKey Lender’s sales team directly.

In comparison, Capterra indicates the starting price for TurnKey Lender at $500 per month. However, this figure may vary depending on the specific needs and scale of the lending operation. 

Syndication Pro

SyndicationPro is tailored for real estate syndicators aiming to manage syndication deals efficiently. It provides tools for investor relations, fundraising, and investment management. Pricing typically starts around $400 to $600 per month and varies based on selected features and the number of users. Capterra indicates that the pricing starts at $95 per month per user.

This platform is more suitable for larger syndicators or those businesses that require comprehensive investor management tools.

How much does it cost to build a custom crowdfunding platform?  

Different sources give different estimates. Some providers claim that building a crowdfunding platform may cost between $60,000 to $230,000. The variation in cost depends on several factors, such as the complexity of the platform, required features, and the development team. 

The most significant cost driver is the web development team itself. The choice of team—whether an in-house team, freelancers, a local agency, or an outsourcing agency—affects both the total cost and the quality of the final product. For instance, hiring an in-house team may cost approximately $180,000, while freelancers or outsourcing agencies in regions like South Asia may reduce costs to as low as $45,000 or $60,000, respectively.

Another crucial factor is the team’s location, which significantly impacts labor costs due to differences in local economic conditions. Creating a crowdfunding platform in the USA might cost around $225,000, whereas working with a team in Eastern Europe could reduce the cost to $60,000 without sacrificing quality. 

Other sources inform that building a crowdfunding platform may cost between $70,000 and $115,000.

Here is an approximate breakdown of how many hours are needed to develop specific features. The data below is provided by Yellow.Systems. Their Clutch profile says that they charge $50 – $99 / hr and their most common project size is $50,000 to $199,999. The table below is not extremely detailed, but somewhat aligns with our 2020 Crowdfunding Industry research in terms of total amount companies spend on building a crowdfunding platform. 

FeatureHoursCosts
Project creation and management200-500$5,000 to $25,000
Payment processing100-200$5,000 to $10,000
User management100-200$3,000 to $5,000
Project discovery150-300$5,000 to $10,000
Rewards and perks150-250$3,000 to $7,000
Analytics and reporting150-250$5,000 to $10,000
Mobile optimization200-400$3,000 to $7,000
Legal compliance100-200$5,000 to $10,000
Marketing and community-building200-500$10,000 to $20,000
Customer support100-200$5,000 to $10,000

Some providers, such as Rewisoft, promise to develop a crowdfunding platform for as little as $100,000. In the meantime, Katipult, an investment software company that grew from a web development agency, claims that you “are looking at a minimum $250,000-300,000K price tag to custom build an investment platform. You are not going to create a product for $50,000 or $100,000”

Based on our research in 2020, 57% of platforms opt for custom in-house solutions, 22% utilize white-label software, and 21% outsource custom development. On average, building a platform costs at least €89,000, though 35% of businesses report spending over €200,000, and 26% invest between €101,000 and €200,000. Additional funds are needed for maintenance, complying with the minimum capital requirements, and so on.

How to launch a crowdfunding platform with LenderKit

We featured many crowdfunding platform providers and custom development agencies, but when it comes to our service, we offer the best of the two worlds:

  • white-label software + customizations
  • ready-made features and integrations + on-demand development

The part about LenderKit is that it’s cheaper than building a crowdfunding platform from scratch and it offers you a market-ready prototype, MVP or a fully-functional platform with limitless customization options. 

LenderKit’s solutions are tailored to various crowdfunding models, including equity, debt, and real estate crowdfunding. The software facilitates full-cycle capital-raising processes and enables platform owners to manage investor onboarding, KYC/AML checks, transaction monitoring, offering creation, document signing and more. Depending on your business goals and target audience, LenderKit can customize the platform to meet specific regulatory requirements and provide a unique user experience. 

If you’re ready to learn more about our white-label investment software, don’t hesitate to reach out to us through the contact form on the website. 

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