Crowdfunding involves raising funds online from a broad audience to support the creation or improvement of a specific project, like app development. It’s like an online donation drive, but for a digital product instead of a charitable cause.

The process typically includes setting a funding goal, presenting the project on a crowdfunding platform, and offering rewards to backers. Rewards could come either in kind (special merchandise in exchange for funding or donation) or a share of stock from the app business (in the case of equity crowdfunding).

Benefits of crowdfunding

Among the many advantages of crowdfunding are easy access to financing, community building, and market validation. The latter two can facilitate the establishment of a large user base and ultimately result in sustainable earnings for the project. For instance, knowing that a certain number of people gave money for the development of your app can help you effectively prospect the market success of your proposed application.