crowdfunding at a glance

Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. 

This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and crowdfunding platforms—and leverages their networks for greater reach and exposure.

How is Crowdfunding Different?

Crowdfunding is essentially the opposite of the mainstream approach to business finance. Traditionally, if you want to raise capital to start a business or launch a new product, you would need to pack up your business plan, market research, and prototypes, and then shop your idea around to a limited pool or wealthy individuals or institutions. These funding sources included banks, angel investors, and venture capital firms, really limiting your options to a few key players. You can think of this fundraising approach as a funnel, with you and your pitch at the wide end and your audience of investors at the closed end. Fail to point that funnel at the right investor or firm at the right time, and that’s your time and money lost.


Marketplace has helped developers crowdfund over 1 million dollars to develop and market their new apps. Developers build a distribution network around their app campaign page through online email, social media and blogging and offline communication.


Launched in 2012, Appsplit is a crowdfunding platform for apps that allows you to fundraise for your app idea, sell an existing iPhone or Android app, and find contractors to work with you on a mobile app.

“For crowdfunding campaigns we take 5% for all-or-none campaigns (only get the money if you reach the goal) or 10% for open campaigns (you get the money even if you dont reach your goal). For the marketplace campaigns (sales) we take 5%. The connect campaign is free for both sides.”


Appsfunder is a crowdfunding platform for mobile apps. To date, about a 100 products have been listed on the website according to their stats page.

“We charge 8% on the collected funds per milestone for successfully funded projects.

We also receive 5% of all app-revenues made by the ap once published.”


“AppStori is a crowdsourcing and funding platform for great mobile apps.”

Listing on AppStori is free, once approved. If you’re successful in reaching your funding goal, Amazon Payments and AppStori deduct transaction fees. AppStori collects 7% commission only if the project is successful. Amazon takes an average of 2-3%.

Source: crowdcrux, fundable