How to Find a Crowdfunding Platform Development Agency

If you are thinking about launching your own crowdfunding platform, you may want to develop it from scratch or use white-label software provided by a crowdfunding software development agency. 

The first option is expensive and time-demanding, therefore, it is better to choose it if you want a unique website with a very specific flow. 

If you want to get a standard crowdfunding platform, it is more reasonable to choose a crowdfunding software development agency and get a solution that can be used either right away or after some customization.

But where should you look for crowdfunding platform development agencies and white-label investment software providers?

Popular crowdfunding software directories

Ideally, peer reviews and opinions help businesses get an accurate overview of crowdfunding software providers and choose the best one to work with. 

That’s why relying on such sources as  Capterra, G2Crowd, or TrustPilot to look for a company that can develop a crowdfunding platform is a common practice.

However, one shall consider that reviews left on those websites are mostly either left by the companies themselves or upon their request in exchange for a discount, a small payment, or other perks. 

That’s why if you want to see the real reviews, you need to know how to differentiate them from fake ones, and even in such a case, there is no guarantee that your decision will be based on trustful information.

Another issue with such websites is that companies that create profiles there find it difficult to categorize the services they offer. It happens mainly due to the technical limitations by the listing websites. 

Frequently, you might see development agencies offering their services in the development of investment software, financing software, or fundraising software which are general terms that may not necessarily provide the correct description of a company. 

Careful google search

Instead of using the crowdfunding software listing portals, you might want to search the web in an effort to find a company that can deliver a proper crowdfunding solution. Companies do a good job optimizing for Google search results, however, there also may be certain complications as the industry grows. .

If you search “crowdfunding software development agency”, you will find many companies that offer development services, but not necessarily in crowdfunding.

The main problem here is that most companies develop software for different types of businesses and just use “crowdfunding” for additional PR and have no expertise in this niche.

The crowdfunding industry is very specific, and unless the company specializes in providing solutions for it, it is impossible to create software that satisfies all the needs of a crowdfunding business. 

That’s why it may be better to avoid using the services of development companies that do not specialize in crowdfunding as their main area. On the one hand, you may get an expensive estimate on your requirements or miss on many details such as important integrations, legal compliance, etc. 

On the other hand, working with an unprofessional firm that didn’t help you think through the process may cause issues with users, investors, transactions, and regulators in the future. 

Crowdfunding software providers 

However, if you change the request to “crowdfunding software”, you will be displayed exactly what you need: the companies that offer the development of software solutions for crowdinvesting portals.

But you should still be careful here. 

Some companies offer ready solutions on a subscription basis. You cannot change anything there or customize the features or even design. Such solutions are fine if you want to launch the platform asap but they come with some significant drawbacks:

• You cannot customize the solution, you have to accept it as it is.
• You can use the solution based on a fee that you are required to pay constantly.
• You depend on the third party when it comes to implementing changes to a solution or upgrading its functionality to meet the market needs.

Other companies such as LenderKit offer crowdfunding solutions that can be customized based on the regulation that the platform is required to comply with, the business crowdfunding flow, design, integrations, or other functions that you might want to adapt to your company’s needs. 

You have the ownership over the crowdfunding platform which means that you don’t have to rely on the decisions of a third party to upgrade the solution or implement any new features. Our team easily do them upon your request. 

Along with these benefits, you get an extensive set of out-of-the box features that can provide the basic functionality to your platform right away, before the customizations are implemented.

Mandatory features for a crowdfunding software solution

The feature set of a selected solution can be different depending on what you are looking for. But there are mandatory features without which your platform will not function properly. When you are choosing a solution to build a crowdfunding website, make sure the following features are available. 

KYC verification

A crowdfunding platform shall have instruments to be KYC/AML compliant and enable investors, fundraisers or advisors to pass verification procedures rapidly and efficiently. It is done to reduce money laundering and offer a certain level of security and due diligence on your platform. 

Efficient account management

Account management has to be easy and smooth to enable investors to replenish their wallets, see available campaigns, and make donations. 

Fundraisers need to see the progress of a campaign, how many funds and by how many investors were collected, etc.

The platform needs to handle thousands of inputs from different people, so that’s why the available features in an account shall be enough to cover all the users’ needs.

Transaction management

The functionality of crowdfunding software has to be sufficient to manage payments and donations in a centralized manner. The platform needs to enable users to receive funds from different countries safely and effortlessly and reconcile their payment flows automatically. 

That’s why it is important to provide well-established payment gateways and configure the software to accept multiple currencies.

Tax reporting

Crowdfunding activities are normally taxed, especially if a crowdfunding portal operates in the USA. That’s why it is crucial for a platform to have mechanisms to report income from a campaign to authorities to help investors not only to save their time but to ensure they are complying with the taxation requirements.

Bottom line

LenderKit offers crowdfunding solutions with an extensive set of out-of-the-box features that not only comply with the above-mentioned requirements, but offer the needed functionality for a crowdfunding platform to start operating right away. The solutions can be used as they are or customized based on the specifics of your company. 

If you’d like to learn more about the LenderKit investment software, check out the online tour or reach out to our fintech strategist for more information.