MASSOLUTIONCOM
2013CFCROWDFUNDING MARKET SOFTWARE AND SOLUTIONS
EXCERPT
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
2
copy massolution 2013 All rights reserved Confidential
Massolution provides you with a limited license to view and use this report subject to the
terms contained herein If you do not agree to the terms of this license agreement you
may not view or use this report and must immediately delete or destroy all copies of this
report within your possession
Massolution provides you with a limited non-exclusive personal non-transferrable
and revocable license to view one copy of this report and to publish up to two charts
contained within this report for non-commercial use All published charts must contain a
full citation to the report and a link to httpwwwcrowdsourcingorgresearch All other
rights are reserved
You are expressly prohibited from reproducing creating derivative works of distributing
publicly performing publicly displaying or transmitting the report in a manner not
otherwise expressly allowed under these terms including photocopying forwarding
publishing or providing the report to unlicensed users You acknowledge and agree that
all proprietary information contained within this report is the property trade secrets
and confidential information of massolution Please contact massolution directly with all
inquiries concerning multiuser licenses or any other questions
2013CF MASSOLUTIONCOM2
2013CF SWS EXCERPT
SECTION OvERvIEW
bull ACROSS THE MODELS
bull FINANCIAL vS
NON-FINANCIAL
CROWDFUNDING
MODELS
bull INDIvIDUAL MODELS
2013CF MASSOLUTIONCOM
2013CF Crowdfunding Market Software and Solutions is the fourth report in
Massolutionrsquos 2013CF series of research publications on the crowdfunding market
in 2013 The 2013CF series informs industry participants such as crowdfunding
platform operators service providers (accountants lawyers technology providers
etc) investors enterprises governments and anyone else interested in the industry
about its current state its evolution its societal impact and provides the context for
emerging trends
The report at hand is an account and analysis of the considerations new entrants
are faced with when creating a new crowdfunding platform (ldquoCFPrdquo) It follows the
entire decision process beginning at the decision to enter the market through the
choice of crowdfunding model to best serve the intended client base (crowdfunders
and campaign owners) to the main chapter which provides information about the
analysis to support the ldquoBuy vs Buildrdquo decision We provide guidelines and deep
insight into this process
This report is based on the most comprehensive and unique data set ever complied
to provide crowdfunding market participants with the information needed to
understand the various options for entering the crowdfunding market Over 30
software and solution options are outlined analyzed and put in context of the
specific needs they service
INTRODUCTION
2013CF Crowdfunding Market Software and Solutions
3
THE REPORT AT HAND
IS AN ACCOUNT AND
ANALYSIS OF THE
CONSIDERATIONS
NEW ENTRANTS ARE
FACED WITH WHEN
CREATING A NEW
CROWDFUNDING
PLATFORM
ldquo
4 2013CF MASSOLUTIONCOM
The evolution of the crowdfunding market has been exceptional over the past few
years growing from $530 million funded through 200 platforms worldwide in 2009
to $27 billion from 600 platforms last year Furthermore Massolutionrsquos recent
2013CF ndash Crowdfunding Industry Report forecasts that the total funding volume for
2013 will exceed $5 billion
Crowdfunding has proven itself as an effective tool for capital formation for social
causes and creative projects as well as startups and established companies Enabled
by hundreds of platforms all over the world that host the campaigns and facilitate
the transactions crowdfunders can now participate in this exciting new ecosystem
New platforms are launching weekly and many new players are evaluating and
developing their market strategies As crowdfunding becomes mainstream we see
indications of the market maturing exemplified by the emergence of third parties
offering crowdfunding software and solutions Therefore a multitude of options exist
for people wishing to enter the crowdfunding market and launch their own platform
The 2013CF - Crowdfunding Software amp Solutions provides you with a comprehensive
study of available solutions - the first of its kind It presents you with the range of
options and considerations to with the ldquoBuy vs Buildrdquo decision
Whether you plan to operate a platform invest in the market or simply wish to
keep track of market developments this report provides you with the necessary
reference guide to assist you in your thought process
Kevin Berg Kartaszewicz-Grell PhD
Research Director (crowdfunding) Massolution
FOREWORD
2013CF Crowdfunding Market Software and Solutions
MASSOLUTIONrsquoS
RECENT 2013CF ndash
CROWDFUNDING
INDUSTRY REPORT
FORECASTS THAT
THE TOTAL FUNDING
vOLUME FOR 2013
WILL EXCEED
$5 BILLION
ldquo Evolution of the Crowdfunding Market
5 2013CF MASSOLUTIONCOM
Over the course of four months Massolution conducted extensive market research
on available crowdfunding software and solutions Providers of crowdfunding
software and solutions were surveyed via multiple questionnaires and individual
interviews from January to April 2013
Massolution identified thirty providers of white label solutions as well as a range of
additional options for building and launching crowdfunding platforms A number of
third-party providers who offer supporting services and tools were also considered
and included where applicable
2013CF ndash Crowdfunding Market Software and Solutions report contains unique
insights on the ldquoBuy vs Buildrdquo decision process Subscribers to this report also
receive access to online profiles of thirty providers of crowdfunding software
and solutions and functionality tables for each of the five crowdfunding models
donations- rewards- equity- lending- and royalty-based crowdfunding
This report has been structured to guide the reader through the process of deciding
1) Should they enter the market
2) Should they buy or build a platform
3) If buy who should they partner with
Massolution has developed a ldquoBuy vs Buildrdquo decision matrix specifically for
crowdfunding based on standard industry approaches for software selection
METHODOLOGY AND PRESENTATION2013CF Crowdfunding Market Software and Solutions
MASSOLUTION
IDENTIFIED THIRTY
PROvIDERS OF WHITE
LABEL SOLUTIONS AS
WELL AS A RANGE OF
ADDITIONAL OPTIONS
FOR BUILDING
AND LAUNCHING
CROWDFUNDING
PLATFORMS
ldquo
6 2013CF MASSOLUTIONCOM
2013CF ndash Crowdfunding Market Software and Solutions Research Team Members
Kevin Berg Kartaszewicz-Grell
Research Director
Kevin is massolutionrsquos Research Director for Crowdfunding and Crowdsourcing
orgrsquos CAPS Program Director Research interests include Information-flow in
distributed networks and Network driven asset allocation He holds a PhD in
finance an MSc and a BSc in mathematics and economics
Paul Spinrad
Research Associate
Paul is a former editor at Wired and MAKE magazines and a crowdfunding
thought leader who catalyzed the movement for the JOBS Actrsquos crowdfunding
provision He began his career as a software engineer for government and
business applications
Maria Adamowicz
Senior Analyst
Maria is a multi-lingual researcher with a variety of financial and analytical experience
from various countries She holds a double MBA in Capital Markets (Warsaw
University) and International Business (HULT International Business School)
Mayra Sernas
Research Assistant
Mayra is a bilingual-research assistant that has supported massolutionrsquos
crowdsourcing and crowdfunding research in North America and Latin America
RESEARCH TEAM2013CF Crowdfunding Market Software and Solutions
7 2013CF MASSOLUTIONCOM
There is a revolution in how we work and how we fund business and
massolution is at the heart of it
Massolution is a unique research and advisory firm that is pioneering the
use of crowd-solutions in government institutions and in enterprises
Massolutionrsquos pioneering work includes
bull Consulting to enterprises on the adoption of crowdsourcing and
crowdfunding to leverage enterprise innovation portfolios
bull Supporting enterprises in the design and delivery of new work processes
that enable crowd labor solutions
bull Advisory work to Governments and institutions on national crowdsourcing
and crowdfunding strategies that drive social and economic impact
bull Advising nations on the design and build of future digital workforce
strategies to create new high-income digital jobs
bull Agency advisory on the use of the crowd to improve public sector processes
and drive new forms of capital formation
Massolution is helping to write the guidelines for a new way to do and
fund business
ABOUT MASSOLUTION2013CF Crowdfunding Market Software and Solutions
CROWDSOURCING INC
Crowdsourcing Inc operates two business units massolution (Research Advisory and Events) and Crowdsourcingorg (Publishing) and is headquartered in Los Angeles California at
11400 West Olympic Blvd
Suite 200
Los Angeles CA 90064
To reach a member
of the massolution or
Crowdsourcingorg team
please contact
researchcrowdsourcingorg
Media ContactJennifer Moebius
jennifercrowdsourcingorg
TwitterCrowdsourcing_
8 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
1 Introduction a Foreword
i Evolution of the Crowdfunding Market ii An Emerging Ecosystem
c About this Research i Methodology and Presentation ii Research Team iii About massolution
c Definitions and Taxonomy i Crowdfunding Defined ii Crowdfunding Models
2 Entering the Crowdfunding Market a Market Strategy
i The Crowdfunding World Map ii Funding Volumes iii Crowdfunding Activity
b Business Model i Crowdfunding Model ii Revenue Model iii Cost Components
c Market Positioning i Understand Your Crowd ii Branding and Uniqueness iii Integration with an Existing Site iv Affiliate Programs v Platform Networks
d Buy vs Build
3 Buy vs Build a Requirements d ldquoBuy vs Buildrdquo Decision Matrix
i License Standard Solution ii License a Standard Solution or Assemble In-House iii Build and Assemble In-House iv Develop with a Partner
9 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
4 Other Considerations a Ongoing Support Costs b Platform Features
i Dashboards and User Experience ii Administrators Interface iii Configurability iv Mobile Integration v Social Media Integration and Widgets
c Operational Considerations i Traffic and Scalability ii Payment Processing iii Electronic Signatures (for Lending- and Equity-Based Platforms)
5 Crowdfunding in the US a Introduction
i A New Market b Compliance
i Implications ii Tax Compliance iii Rewards and Securities iv Securities Deslers-Brokers v Transactions vi Investor Network Platforms vii Other Issues
6 Trends and Developments a Outlook
i Expansion of Build Your Own Options
ii API Markets
iii Investor Network CFPs
iv Integration of Advanced Tools
v Mobile Offerings
b Summary
i Moving Forward
Additionally subscribers to this report also receive access to online profiles of thirty
providers of crowdfunding software and solutions and functionality tables for
each of the five crowdfunding models donations- rewards- equity- lending- and
royalty-based crowdfunding
10 2013CF MASSOLUTIONCOM
CFPs worldwide cover an impressive range of categories funding models and of
course a variety of ways to provide the functionality required by the specific crowds
they service How your platform should stand out from (or mimic) the existing
platforms is basically a matter of what you want to achieve
Every prospective CFP operator should consider the following questions before
entering the market Who will be the crowdfunders and who will be the campaign
owners What type of campaigns should be hosted What is the best funding model
for these types of campaigns to offer for the crowdfunders and campaign owners
The last question not only corresponds directly to your choice of crowdfunding model
but it also has vast implications for the choice of service provider Furthermore it
also influences your business model back-end management and additional services
(such as legal advice) decisions
In order to answer the progression of questions you need to have a clear
understanding of who you are trying to service how they are to be serviced and
what platform and service providers will offer the best value In this regard the full
report outlines what you need to consider in terms of Branding and Uniqueness
Site-Integration Affiliation Programs and Platform Networks
ENTERING THE MARKET2013CF Crowdfunding Market Software and Solutions
HOW YOUR
PLATFORM SHOULD
STAND OUT FROM
(OR MIMIC)
THE EXISTING
PLATFORMS IS
BASICALLY A MATTER
OF WHAT YOU WANT
TO ACHIEvE
ldquo
2013CF MASSOLUTIONCOM11
As with any other software development task the decision to buy a solution (which
for the purposes of this research includes licensing software) build it yourself (from
scratch or by assembling components) or use a combination of these two options
depends on two essential factors uniqueness of needs and development experience
A thorough understanding of these two factors is advisable before reaching out to
potential providers This chapter explains and analyzes these two factors in context
of the Buy vs Build decision for crowdfunding software
Consideration 1
How unique are your needs
If you require a unique platform as discussed in the previous chapter then you will
either need to perform some custom development work yourself or select a solution
that provides the support of a development partner But if you plan to launch a CFP that is
based on a standard user interface then you have the option to license one of a number
of white label solutions And if itrsquos not a lending- or equity-based platform you also have
the option to assemble it yourself from available software tools and components
Consideration 2
What level of development experience do you have
Your Buy vs Build decision also depends on what professional development
resources you have in-house and are able to direct to the development of your CFP
Building your own platform will require software development and design expertise
Maintaining it will require further software expertise Lending- or equity-based
platforms also require additional ldquoback-officerdquo professional services that from a cost
and effort perspective are likely to exceed the level of technical support required
Back-office professional services include the need to obtain a broker-dealers license
or to partner with broker-dealers (note some solutions such as Community Leader
provide the optional services of an affiliated broker-dealer) lawyers accountants
and compliance officers
BUY vS BUILD2013CF Crowdfunding Market Software and Solutions
AS WITH ANY
OTHER SOFTWARE
DEvELOPMENT TASK
THE DECISION TO BUY
A SOLUTION BUILD
IT YOURSELF OR USE
A COMBINATION OF
THESE TWO OPTIONS
DEPENDS ON TWO
ESSENTIAL FACTORS
UNIQUENESS
OF NEEDS AND
DEvELOPMENT
EXPERIENCE
ldquo
2013CF MASSOLUTIONCOM12
The following decision matrix depicts how different combinations of the two factors
translate into four main solution options The remainder of this chapter outlines
each of these solution options in greater detail
BUY vS BUILD (CONT)2013CF Crowdfunding Market Software and Solutions
LicenseStandard Solution
orAssemble In-House
LicenseStandard Solution
(white label co-brandedor partner network)
Build and AssembleIn-House
(using open source orcommercially available
components)
Developwith a Partner
(custom solution provider)
High
Low High
Uniqueness of Need
Dev
elop
men
t Ex
peri
ence
Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
Figure Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
13 2013CF MASSOLUTIONCOM
There are basically four options available today They are License Standard Solution
Assemble in-House Build and Develop with a Partner
Depending of your uniqueness of needs and in-house development expertise you could
have alternative options as illustrated in the Buy vs Build decision matrix For example
if your requirements are not unique but you have a high level of in-house expertise
you have the option to either license a standard solution or assemble in house from
purchased (or free) components
As explained previously each of these options is available because the demand from
new CFPs pertains to both the uniqueness of needs and the in-house expertise
LICENSE STANDARD SOLUTION
A standardized solution will be a good fit for you if the CFP you are aiming for is somewhat
similar to the ones we see operating today and your level of in-house expertise is low
Applying an existing model to a new category of campaigns a new region or similar
strategies that do not require any tweaks or customization is well suited for one of the
many standard solutions Every provider of crowdfunding software and solutions will
have a standardized solution to offer The donation- and reward-based models are by
and large the cheapest ones the royalty-based and lending-based models require more
sophisticated back-end design and are therefore more costly and the equity-based
models are generally the most expensive
ASSEMBLE IN-HOUSE
Although a standardized solution is a good match for CFPs that do not require tweaks
or customizations you should still keep in mind the potential in-house resources that
might be able to assemble the CFP from individual components rather than purchasing
a complete solution This is particularly viable if you have a high level of in-house
development expertise There are several options available in this situation and the
full report outlines several ways the white-labels in the market can be customized to
accommodate you if you decide to assemble in-house
OPTIONS2013CF Crowdfunding Market Software and Solutions
THERE ARE
BASICALLY FOUR
OPTIONS AvAILABLE
TODAY THEY ARE
LICENSE STANDARD
SOLUTION
ASSEMBLE IN-HOUSE
BUILD AND DEvELOP
WITH A PARTNER
ldquo
14 2013CF MASSOLUTIONCOM
OPTIONS (CONT)2013CF Crowdfunding Market Software and Solutions
BUILD
If your requirements are unique and you do have access to in-house development
resources you have the option to build from scratch or utilize available components and
direct effort toward customization and integration
DEVELOP WITH A PARTNER
If your CFP idea is completely unique and cannot be matched by a standard solution or
assembled from individual components and you do not possess a high level of in-house
development expertise you have the option to develop your CFP with a partner As the
crowdfunding market evolves new approaches to the CFP structure are continuously
tested Requests for solutions that are significantly different from the CFP landscape as of
today have increased to a point where every white-label provider can offer customization
and partnership to some degree
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
2
copy massolution 2013 All rights reserved Confidential
Massolution provides you with a limited license to view and use this report subject to the
terms contained herein If you do not agree to the terms of this license agreement you
may not view or use this report and must immediately delete or destroy all copies of this
report within your possession
Massolution provides you with a limited non-exclusive personal non-transferrable
and revocable license to view one copy of this report and to publish up to two charts
contained within this report for non-commercial use All published charts must contain a
full citation to the report and a link to httpwwwcrowdsourcingorgresearch All other
rights are reserved
You are expressly prohibited from reproducing creating derivative works of distributing
publicly performing publicly displaying or transmitting the report in a manner not
otherwise expressly allowed under these terms including photocopying forwarding
publishing or providing the report to unlicensed users You acknowledge and agree that
all proprietary information contained within this report is the property trade secrets
and confidential information of massolution Please contact massolution directly with all
inquiries concerning multiuser licenses or any other questions
2013CF MASSOLUTIONCOM2
2013CF SWS EXCERPT
SECTION OvERvIEW
bull ACROSS THE MODELS
bull FINANCIAL vS
NON-FINANCIAL
CROWDFUNDING
MODELS
bull INDIvIDUAL MODELS
2013CF MASSOLUTIONCOM
2013CF Crowdfunding Market Software and Solutions is the fourth report in
Massolutionrsquos 2013CF series of research publications on the crowdfunding market
in 2013 The 2013CF series informs industry participants such as crowdfunding
platform operators service providers (accountants lawyers technology providers
etc) investors enterprises governments and anyone else interested in the industry
about its current state its evolution its societal impact and provides the context for
emerging trends
The report at hand is an account and analysis of the considerations new entrants
are faced with when creating a new crowdfunding platform (ldquoCFPrdquo) It follows the
entire decision process beginning at the decision to enter the market through the
choice of crowdfunding model to best serve the intended client base (crowdfunders
and campaign owners) to the main chapter which provides information about the
analysis to support the ldquoBuy vs Buildrdquo decision We provide guidelines and deep
insight into this process
This report is based on the most comprehensive and unique data set ever complied
to provide crowdfunding market participants with the information needed to
understand the various options for entering the crowdfunding market Over 30
software and solution options are outlined analyzed and put in context of the
specific needs they service
INTRODUCTION
2013CF Crowdfunding Market Software and Solutions
3
THE REPORT AT HAND
IS AN ACCOUNT AND
ANALYSIS OF THE
CONSIDERATIONS
NEW ENTRANTS ARE
FACED WITH WHEN
CREATING A NEW
CROWDFUNDING
PLATFORM
ldquo
4 2013CF MASSOLUTIONCOM
The evolution of the crowdfunding market has been exceptional over the past few
years growing from $530 million funded through 200 platforms worldwide in 2009
to $27 billion from 600 platforms last year Furthermore Massolutionrsquos recent
2013CF ndash Crowdfunding Industry Report forecasts that the total funding volume for
2013 will exceed $5 billion
Crowdfunding has proven itself as an effective tool for capital formation for social
causes and creative projects as well as startups and established companies Enabled
by hundreds of platforms all over the world that host the campaigns and facilitate
the transactions crowdfunders can now participate in this exciting new ecosystem
New platforms are launching weekly and many new players are evaluating and
developing their market strategies As crowdfunding becomes mainstream we see
indications of the market maturing exemplified by the emergence of third parties
offering crowdfunding software and solutions Therefore a multitude of options exist
for people wishing to enter the crowdfunding market and launch their own platform
The 2013CF - Crowdfunding Software amp Solutions provides you with a comprehensive
study of available solutions - the first of its kind It presents you with the range of
options and considerations to with the ldquoBuy vs Buildrdquo decision
Whether you plan to operate a platform invest in the market or simply wish to
keep track of market developments this report provides you with the necessary
reference guide to assist you in your thought process
Kevin Berg Kartaszewicz-Grell PhD
Research Director (crowdfunding) Massolution
FOREWORD
2013CF Crowdfunding Market Software and Solutions
MASSOLUTIONrsquoS
RECENT 2013CF ndash
CROWDFUNDING
INDUSTRY REPORT
FORECASTS THAT
THE TOTAL FUNDING
vOLUME FOR 2013
WILL EXCEED
$5 BILLION
ldquo Evolution of the Crowdfunding Market
5 2013CF MASSOLUTIONCOM
Over the course of four months Massolution conducted extensive market research
on available crowdfunding software and solutions Providers of crowdfunding
software and solutions were surveyed via multiple questionnaires and individual
interviews from January to April 2013
Massolution identified thirty providers of white label solutions as well as a range of
additional options for building and launching crowdfunding platforms A number of
third-party providers who offer supporting services and tools were also considered
and included where applicable
2013CF ndash Crowdfunding Market Software and Solutions report contains unique
insights on the ldquoBuy vs Buildrdquo decision process Subscribers to this report also
receive access to online profiles of thirty providers of crowdfunding software
and solutions and functionality tables for each of the five crowdfunding models
donations- rewards- equity- lending- and royalty-based crowdfunding
This report has been structured to guide the reader through the process of deciding
1) Should they enter the market
2) Should they buy or build a platform
3) If buy who should they partner with
Massolution has developed a ldquoBuy vs Buildrdquo decision matrix specifically for
crowdfunding based on standard industry approaches for software selection
METHODOLOGY AND PRESENTATION2013CF Crowdfunding Market Software and Solutions
MASSOLUTION
IDENTIFIED THIRTY
PROvIDERS OF WHITE
LABEL SOLUTIONS AS
WELL AS A RANGE OF
ADDITIONAL OPTIONS
FOR BUILDING
AND LAUNCHING
CROWDFUNDING
PLATFORMS
ldquo
6 2013CF MASSOLUTIONCOM
2013CF ndash Crowdfunding Market Software and Solutions Research Team Members
Kevin Berg Kartaszewicz-Grell
Research Director
Kevin is massolutionrsquos Research Director for Crowdfunding and Crowdsourcing
orgrsquos CAPS Program Director Research interests include Information-flow in
distributed networks and Network driven asset allocation He holds a PhD in
finance an MSc and a BSc in mathematics and economics
Paul Spinrad
Research Associate
Paul is a former editor at Wired and MAKE magazines and a crowdfunding
thought leader who catalyzed the movement for the JOBS Actrsquos crowdfunding
provision He began his career as a software engineer for government and
business applications
Maria Adamowicz
Senior Analyst
Maria is a multi-lingual researcher with a variety of financial and analytical experience
from various countries She holds a double MBA in Capital Markets (Warsaw
University) and International Business (HULT International Business School)
Mayra Sernas
Research Assistant
Mayra is a bilingual-research assistant that has supported massolutionrsquos
crowdsourcing and crowdfunding research in North America and Latin America
RESEARCH TEAM2013CF Crowdfunding Market Software and Solutions
7 2013CF MASSOLUTIONCOM
There is a revolution in how we work and how we fund business and
massolution is at the heart of it
Massolution is a unique research and advisory firm that is pioneering the
use of crowd-solutions in government institutions and in enterprises
Massolutionrsquos pioneering work includes
bull Consulting to enterprises on the adoption of crowdsourcing and
crowdfunding to leverage enterprise innovation portfolios
bull Supporting enterprises in the design and delivery of new work processes
that enable crowd labor solutions
bull Advisory work to Governments and institutions on national crowdsourcing
and crowdfunding strategies that drive social and economic impact
bull Advising nations on the design and build of future digital workforce
strategies to create new high-income digital jobs
bull Agency advisory on the use of the crowd to improve public sector processes
and drive new forms of capital formation
Massolution is helping to write the guidelines for a new way to do and
fund business
ABOUT MASSOLUTION2013CF Crowdfunding Market Software and Solutions
CROWDSOURCING INC
Crowdsourcing Inc operates two business units massolution (Research Advisory and Events) and Crowdsourcingorg (Publishing) and is headquartered in Los Angeles California at
11400 West Olympic Blvd
Suite 200
Los Angeles CA 90064
To reach a member
of the massolution or
Crowdsourcingorg team
please contact
researchcrowdsourcingorg
Media ContactJennifer Moebius
jennifercrowdsourcingorg
TwitterCrowdsourcing_
8 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
1 Introduction a Foreword
i Evolution of the Crowdfunding Market ii An Emerging Ecosystem
c About this Research i Methodology and Presentation ii Research Team iii About massolution
c Definitions and Taxonomy i Crowdfunding Defined ii Crowdfunding Models
2 Entering the Crowdfunding Market a Market Strategy
i The Crowdfunding World Map ii Funding Volumes iii Crowdfunding Activity
b Business Model i Crowdfunding Model ii Revenue Model iii Cost Components
c Market Positioning i Understand Your Crowd ii Branding and Uniqueness iii Integration with an Existing Site iv Affiliate Programs v Platform Networks
d Buy vs Build
3 Buy vs Build a Requirements d ldquoBuy vs Buildrdquo Decision Matrix
i License Standard Solution ii License a Standard Solution or Assemble In-House iii Build and Assemble In-House iv Develop with a Partner
9 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
4 Other Considerations a Ongoing Support Costs b Platform Features
i Dashboards and User Experience ii Administrators Interface iii Configurability iv Mobile Integration v Social Media Integration and Widgets
c Operational Considerations i Traffic and Scalability ii Payment Processing iii Electronic Signatures (for Lending- and Equity-Based Platforms)
5 Crowdfunding in the US a Introduction
i A New Market b Compliance
i Implications ii Tax Compliance iii Rewards and Securities iv Securities Deslers-Brokers v Transactions vi Investor Network Platforms vii Other Issues
6 Trends and Developments a Outlook
i Expansion of Build Your Own Options
ii API Markets
iii Investor Network CFPs
iv Integration of Advanced Tools
v Mobile Offerings
b Summary
i Moving Forward
Additionally subscribers to this report also receive access to online profiles of thirty
providers of crowdfunding software and solutions and functionality tables for
each of the five crowdfunding models donations- rewards- equity- lending- and
royalty-based crowdfunding
10 2013CF MASSOLUTIONCOM
CFPs worldwide cover an impressive range of categories funding models and of
course a variety of ways to provide the functionality required by the specific crowds
they service How your platform should stand out from (or mimic) the existing
platforms is basically a matter of what you want to achieve
Every prospective CFP operator should consider the following questions before
entering the market Who will be the crowdfunders and who will be the campaign
owners What type of campaigns should be hosted What is the best funding model
for these types of campaigns to offer for the crowdfunders and campaign owners
The last question not only corresponds directly to your choice of crowdfunding model
but it also has vast implications for the choice of service provider Furthermore it
also influences your business model back-end management and additional services
(such as legal advice) decisions
In order to answer the progression of questions you need to have a clear
understanding of who you are trying to service how they are to be serviced and
what platform and service providers will offer the best value In this regard the full
report outlines what you need to consider in terms of Branding and Uniqueness
Site-Integration Affiliation Programs and Platform Networks
ENTERING THE MARKET2013CF Crowdfunding Market Software and Solutions
HOW YOUR
PLATFORM SHOULD
STAND OUT FROM
(OR MIMIC)
THE EXISTING
PLATFORMS IS
BASICALLY A MATTER
OF WHAT YOU WANT
TO ACHIEvE
ldquo
2013CF MASSOLUTIONCOM11
As with any other software development task the decision to buy a solution (which
for the purposes of this research includes licensing software) build it yourself (from
scratch or by assembling components) or use a combination of these two options
depends on two essential factors uniqueness of needs and development experience
A thorough understanding of these two factors is advisable before reaching out to
potential providers This chapter explains and analyzes these two factors in context
of the Buy vs Build decision for crowdfunding software
Consideration 1
How unique are your needs
If you require a unique platform as discussed in the previous chapter then you will
either need to perform some custom development work yourself or select a solution
that provides the support of a development partner But if you plan to launch a CFP that is
based on a standard user interface then you have the option to license one of a number
of white label solutions And if itrsquos not a lending- or equity-based platform you also have
the option to assemble it yourself from available software tools and components
Consideration 2
What level of development experience do you have
Your Buy vs Build decision also depends on what professional development
resources you have in-house and are able to direct to the development of your CFP
Building your own platform will require software development and design expertise
Maintaining it will require further software expertise Lending- or equity-based
platforms also require additional ldquoback-officerdquo professional services that from a cost
and effort perspective are likely to exceed the level of technical support required
Back-office professional services include the need to obtain a broker-dealers license
or to partner with broker-dealers (note some solutions such as Community Leader
provide the optional services of an affiliated broker-dealer) lawyers accountants
and compliance officers
BUY vS BUILD2013CF Crowdfunding Market Software and Solutions
AS WITH ANY
OTHER SOFTWARE
DEvELOPMENT TASK
THE DECISION TO BUY
A SOLUTION BUILD
IT YOURSELF OR USE
A COMBINATION OF
THESE TWO OPTIONS
DEPENDS ON TWO
ESSENTIAL FACTORS
UNIQUENESS
OF NEEDS AND
DEvELOPMENT
EXPERIENCE
ldquo
2013CF MASSOLUTIONCOM12
The following decision matrix depicts how different combinations of the two factors
translate into four main solution options The remainder of this chapter outlines
each of these solution options in greater detail
BUY vS BUILD (CONT)2013CF Crowdfunding Market Software and Solutions
LicenseStandard Solution
orAssemble In-House
LicenseStandard Solution
(white label co-brandedor partner network)
Build and AssembleIn-House
(using open source orcommercially available
components)
Developwith a Partner
(custom solution provider)
High
Low High
Uniqueness of Need
Dev
elop
men
t Ex
peri
ence
Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
Figure Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
13 2013CF MASSOLUTIONCOM
There are basically four options available today They are License Standard Solution
Assemble in-House Build and Develop with a Partner
Depending of your uniqueness of needs and in-house development expertise you could
have alternative options as illustrated in the Buy vs Build decision matrix For example
if your requirements are not unique but you have a high level of in-house expertise
you have the option to either license a standard solution or assemble in house from
purchased (or free) components
As explained previously each of these options is available because the demand from
new CFPs pertains to both the uniqueness of needs and the in-house expertise
LICENSE STANDARD SOLUTION
A standardized solution will be a good fit for you if the CFP you are aiming for is somewhat
similar to the ones we see operating today and your level of in-house expertise is low
Applying an existing model to a new category of campaigns a new region or similar
strategies that do not require any tweaks or customization is well suited for one of the
many standard solutions Every provider of crowdfunding software and solutions will
have a standardized solution to offer The donation- and reward-based models are by
and large the cheapest ones the royalty-based and lending-based models require more
sophisticated back-end design and are therefore more costly and the equity-based
models are generally the most expensive
ASSEMBLE IN-HOUSE
Although a standardized solution is a good match for CFPs that do not require tweaks
or customizations you should still keep in mind the potential in-house resources that
might be able to assemble the CFP from individual components rather than purchasing
a complete solution This is particularly viable if you have a high level of in-house
development expertise There are several options available in this situation and the
full report outlines several ways the white-labels in the market can be customized to
accommodate you if you decide to assemble in-house
OPTIONS2013CF Crowdfunding Market Software and Solutions
THERE ARE
BASICALLY FOUR
OPTIONS AvAILABLE
TODAY THEY ARE
LICENSE STANDARD
SOLUTION
ASSEMBLE IN-HOUSE
BUILD AND DEvELOP
WITH A PARTNER
ldquo
14 2013CF MASSOLUTIONCOM
OPTIONS (CONT)2013CF Crowdfunding Market Software and Solutions
BUILD
If your requirements are unique and you do have access to in-house development
resources you have the option to build from scratch or utilize available components and
direct effort toward customization and integration
DEVELOP WITH A PARTNER
If your CFP idea is completely unique and cannot be matched by a standard solution or
assembled from individual components and you do not possess a high level of in-house
development expertise you have the option to develop your CFP with a partner As the
crowdfunding market evolves new approaches to the CFP structure are continuously
tested Requests for solutions that are significantly different from the CFP landscape as of
today have increased to a point where every white-label provider can offer customization
and partnership to some degree
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
SECTION OvERvIEW
bull ACROSS THE MODELS
bull FINANCIAL vS
NON-FINANCIAL
CROWDFUNDING
MODELS
bull INDIvIDUAL MODELS
2013CF MASSOLUTIONCOM
2013CF Crowdfunding Market Software and Solutions is the fourth report in
Massolutionrsquos 2013CF series of research publications on the crowdfunding market
in 2013 The 2013CF series informs industry participants such as crowdfunding
platform operators service providers (accountants lawyers technology providers
etc) investors enterprises governments and anyone else interested in the industry
about its current state its evolution its societal impact and provides the context for
emerging trends
The report at hand is an account and analysis of the considerations new entrants
are faced with when creating a new crowdfunding platform (ldquoCFPrdquo) It follows the
entire decision process beginning at the decision to enter the market through the
choice of crowdfunding model to best serve the intended client base (crowdfunders
and campaign owners) to the main chapter which provides information about the
analysis to support the ldquoBuy vs Buildrdquo decision We provide guidelines and deep
insight into this process
This report is based on the most comprehensive and unique data set ever complied
to provide crowdfunding market participants with the information needed to
understand the various options for entering the crowdfunding market Over 30
software and solution options are outlined analyzed and put in context of the
specific needs they service
INTRODUCTION
2013CF Crowdfunding Market Software and Solutions
3
THE REPORT AT HAND
IS AN ACCOUNT AND
ANALYSIS OF THE
CONSIDERATIONS
NEW ENTRANTS ARE
FACED WITH WHEN
CREATING A NEW
CROWDFUNDING
PLATFORM
ldquo
4 2013CF MASSOLUTIONCOM
The evolution of the crowdfunding market has been exceptional over the past few
years growing from $530 million funded through 200 platforms worldwide in 2009
to $27 billion from 600 platforms last year Furthermore Massolutionrsquos recent
2013CF ndash Crowdfunding Industry Report forecasts that the total funding volume for
2013 will exceed $5 billion
Crowdfunding has proven itself as an effective tool for capital formation for social
causes and creative projects as well as startups and established companies Enabled
by hundreds of platforms all over the world that host the campaigns and facilitate
the transactions crowdfunders can now participate in this exciting new ecosystem
New platforms are launching weekly and many new players are evaluating and
developing their market strategies As crowdfunding becomes mainstream we see
indications of the market maturing exemplified by the emergence of third parties
offering crowdfunding software and solutions Therefore a multitude of options exist
for people wishing to enter the crowdfunding market and launch their own platform
The 2013CF - Crowdfunding Software amp Solutions provides you with a comprehensive
study of available solutions - the first of its kind It presents you with the range of
options and considerations to with the ldquoBuy vs Buildrdquo decision
Whether you plan to operate a platform invest in the market or simply wish to
keep track of market developments this report provides you with the necessary
reference guide to assist you in your thought process
Kevin Berg Kartaszewicz-Grell PhD
Research Director (crowdfunding) Massolution
FOREWORD
2013CF Crowdfunding Market Software and Solutions
MASSOLUTIONrsquoS
RECENT 2013CF ndash
CROWDFUNDING
INDUSTRY REPORT
FORECASTS THAT
THE TOTAL FUNDING
vOLUME FOR 2013
WILL EXCEED
$5 BILLION
ldquo Evolution of the Crowdfunding Market
5 2013CF MASSOLUTIONCOM
Over the course of four months Massolution conducted extensive market research
on available crowdfunding software and solutions Providers of crowdfunding
software and solutions were surveyed via multiple questionnaires and individual
interviews from January to April 2013
Massolution identified thirty providers of white label solutions as well as a range of
additional options for building and launching crowdfunding platforms A number of
third-party providers who offer supporting services and tools were also considered
and included where applicable
2013CF ndash Crowdfunding Market Software and Solutions report contains unique
insights on the ldquoBuy vs Buildrdquo decision process Subscribers to this report also
receive access to online profiles of thirty providers of crowdfunding software
and solutions and functionality tables for each of the five crowdfunding models
donations- rewards- equity- lending- and royalty-based crowdfunding
This report has been structured to guide the reader through the process of deciding
1) Should they enter the market
2) Should they buy or build a platform
3) If buy who should they partner with
Massolution has developed a ldquoBuy vs Buildrdquo decision matrix specifically for
crowdfunding based on standard industry approaches for software selection
METHODOLOGY AND PRESENTATION2013CF Crowdfunding Market Software and Solutions
MASSOLUTION
IDENTIFIED THIRTY
PROvIDERS OF WHITE
LABEL SOLUTIONS AS
WELL AS A RANGE OF
ADDITIONAL OPTIONS
FOR BUILDING
AND LAUNCHING
CROWDFUNDING
PLATFORMS
ldquo
6 2013CF MASSOLUTIONCOM
2013CF ndash Crowdfunding Market Software and Solutions Research Team Members
Kevin Berg Kartaszewicz-Grell
Research Director
Kevin is massolutionrsquos Research Director for Crowdfunding and Crowdsourcing
orgrsquos CAPS Program Director Research interests include Information-flow in
distributed networks and Network driven asset allocation He holds a PhD in
finance an MSc and a BSc in mathematics and economics
Paul Spinrad
Research Associate
Paul is a former editor at Wired and MAKE magazines and a crowdfunding
thought leader who catalyzed the movement for the JOBS Actrsquos crowdfunding
provision He began his career as a software engineer for government and
business applications
Maria Adamowicz
Senior Analyst
Maria is a multi-lingual researcher with a variety of financial and analytical experience
from various countries She holds a double MBA in Capital Markets (Warsaw
University) and International Business (HULT International Business School)
Mayra Sernas
Research Assistant
Mayra is a bilingual-research assistant that has supported massolutionrsquos
crowdsourcing and crowdfunding research in North America and Latin America
RESEARCH TEAM2013CF Crowdfunding Market Software and Solutions
7 2013CF MASSOLUTIONCOM
There is a revolution in how we work and how we fund business and
massolution is at the heart of it
Massolution is a unique research and advisory firm that is pioneering the
use of crowd-solutions in government institutions and in enterprises
Massolutionrsquos pioneering work includes
bull Consulting to enterprises on the adoption of crowdsourcing and
crowdfunding to leverage enterprise innovation portfolios
bull Supporting enterprises in the design and delivery of new work processes
that enable crowd labor solutions
bull Advisory work to Governments and institutions on national crowdsourcing
and crowdfunding strategies that drive social and economic impact
bull Advising nations on the design and build of future digital workforce
strategies to create new high-income digital jobs
bull Agency advisory on the use of the crowd to improve public sector processes
and drive new forms of capital formation
Massolution is helping to write the guidelines for a new way to do and
fund business
ABOUT MASSOLUTION2013CF Crowdfunding Market Software and Solutions
CROWDSOURCING INC
Crowdsourcing Inc operates two business units massolution (Research Advisory and Events) and Crowdsourcingorg (Publishing) and is headquartered in Los Angeles California at
11400 West Olympic Blvd
Suite 200
Los Angeles CA 90064
To reach a member
of the massolution or
Crowdsourcingorg team
please contact
researchcrowdsourcingorg
Media ContactJennifer Moebius
jennifercrowdsourcingorg
TwitterCrowdsourcing_
8 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
1 Introduction a Foreword
i Evolution of the Crowdfunding Market ii An Emerging Ecosystem
c About this Research i Methodology and Presentation ii Research Team iii About massolution
c Definitions and Taxonomy i Crowdfunding Defined ii Crowdfunding Models
2 Entering the Crowdfunding Market a Market Strategy
i The Crowdfunding World Map ii Funding Volumes iii Crowdfunding Activity
b Business Model i Crowdfunding Model ii Revenue Model iii Cost Components
c Market Positioning i Understand Your Crowd ii Branding and Uniqueness iii Integration with an Existing Site iv Affiliate Programs v Platform Networks
d Buy vs Build
3 Buy vs Build a Requirements d ldquoBuy vs Buildrdquo Decision Matrix
i License Standard Solution ii License a Standard Solution or Assemble In-House iii Build and Assemble In-House iv Develop with a Partner
9 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
4 Other Considerations a Ongoing Support Costs b Platform Features
i Dashboards and User Experience ii Administrators Interface iii Configurability iv Mobile Integration v Social Media Integration and Widgets
c Operational Considerations i Traffic and Scalability ii Payment Processing iii Electronic Signatures (for Lending- and Equity-Based Platforms)
5 Crowdfunding in the US a Introduction
i A New Market b Compliance
i Implications ii Tax Compliance iii Rewards and Securities iv Securities Deslers-Brokers v Transactions vi Investor Network Platforms vii Other Issues
6 Trends and Developments a Outlook
i Expansion of Build Your Own Options
ii API Markets
iii Investor Network CFPs
iv Integration of Advanced Tools
v Mobile Offerings
b Summary
i Moving Forward
Additionally subscribers to this report also receive access to online profiles of thirty
providers of crowdfunding software and solutions and functionality tables for
each of the five crowdfunding models donations- rewards- equity- lending- and
royalty-based crowdfunding
10 2013CF MASSOLUTIONCOM
CFPs worldwide cover an impressive range of categories funding models and of
course a variety of ways to provide the functionality required by the specific crowds
they service How your platform should stand out from (or mimic) the existing
platforms is basically a matter of what you want to achieve
Every prospective CFP operator should consider the following questions before
entering the market Who will be the crowdfunders and who will be the campaign
owners What type of campaigns should be hosted What is the best funding model
for these types of campaigns to offer for the crowdfunders and campaign owners
The last question not only corresponds directly to your choice of crowdfunding model
but it also has vast implications for the choice of service provider Furthermore it
also influences your business model back-end management and additional services
(such as legal advice) decisions
In order to answer the progression of questions you need to have a clear
understanding of who you are trying to service how they are to be serviced and
what platform and service providers will offer the best value In this regard the full
report outlines what you need to consider in terms of Branding and Uniqueness
Site-Integration Affiliation Programs and Platform Networks
ENTERING THE MARKET2013CF Crowdfunding Market Software and Solutions
HOW YOUR
PLATFORM SHOULD
STAND OUT FROM
(OR MIMIC)
THE EXISTING
PLATFORMS IS
BASICALLY A MATTER
OF WHAT YOU WANT
TO ACHIEvE
ldquo
2013CF MASSOLUTIONCOM11
As with any other software development task the decision to buy a solution (which
for the purposes of this research includes licensing software) build it yourself (from
scratch or by assembling components) or use a combination of these two options
depends on two essential factors uniqueness of needs and development experience
A thorough understanding of these two factors is advisable before reaching out to
potential providers This chapter explains and analyzes these two factors in context
of the Buy vs Build decision for crowdfunding software
Consideration 1
How unique are your needs
If you require a unique platform as discussed in the previous chapter then you will
either need to perform some custom development work yourself or select a solution
that provides the support of a development partner But if you plan to launch a CFP that is
based on a standard user interface then you have the option to license one of a number
of white label solutions And if itrsquos not a lending- or equity-based platform you also have
the option to assemble it yourself from available software tools and components
Consideration 2
What level of development experience do you have
Your Buy vs Build decision also depends on what professional development
resources you have in-house and are able to direct to the development of your CFP
Building your own platform will require software development and design expertise
Maintaining it will require further software expertise Lending- or equity-based
platforms also require additional ldquoback-officerdquo professional services that from a cost
and effort perspective are likely to exceed the level of technical support required
Back-office professional services include the need to obtain a broker-dealers license
or to partner with broker-dealers (note some solutions such as Community Leader
provide the optional services of an affiliated broker-dealer) lawyers accountants
and compliance officers
BUY vS BUILD2013CF Crowdfunding Market Software and Solutions
AS WITH ANY
OTHER SOFTWARE
DEvELOPMENT TASK
THE DECISION TO BUY
A SOLUTION BUILD
IT YOURSELF OR USE
A COMBINATION OF
THESE TWO OPTIONS
DEPENDS ON TWO
ESSENTIAL FACTORS
UNIQUENESS
OF NEEDS AND
DEvELOPMENT
EXPERIENCE
ldquo
2013CF MASSOLUTIONCOM12
The following decision matrix depicts how different combinations of the two factors
translate into four main solution options The remainder of this chapter outlines
each of these solution options in greater detail
BUY vS BUILD (CONT)2013CF Crowdfunding Market Software and Solutions
LicenseStandard Solution
orAssemble In-House
LicenseStandard Solution
(white label co-brandedor partner network)
Build and AssembleIn-House
(using open source orcommercially available
components)
Developwith a Partner
(custom solution provider)
High
Low High
Uniqueness of Need
Dev
elop
men
t Ex
peri
ence
Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
Figure Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
13 2013CF MASSOLUTIONCOM
There are basically four options available today They are License Standard Solution
Assemble in-House Build and Develop with a Partner
Depending of your uniqueness of needs and in-house development expertise you could
have alternative options as illustrated in the Buy vs Build decision matrix For example
if your requirements are not unique but you have a high level of in-house expertise
you have the option to either license a standard solution or assemble in house from
purchased (or free) components
As explained previously each of these options is available because the demand from
new CFPs pertains to both the uniqueness of needs and the in-house expertise
LICENSE STANDARD SOLUTION
A standardized solution will be a good fit for you if the CFP you are aiming for is somewhat
similar to the ones we see operating today and your level of in-house expertise is low
Applying an existing model to a new category of campaigns a new region or similar
strategies that do not require any tweaks or customization is well suited for one of the
many standard solutions Every provider of crowdfunding software and solutions will
have a standardized solution to offer The donation- and reward-based models are by
and large the cheapest ones the royalty-based and lending-based models require more
sophisticated back-end design and are therefore more costly and the equity-based
models are generally the most expensive
ASSEMBLE IN-HOUSE
Although a standardized solution is a good match for CFPs that do not require tweaks
or customizations you should still keep in mind the potential in-house resources that
might be able to assemble the CFP from individual components rather than purchasing
a complete solution This is particularly viable if you have a high level of in-house
development expertise There are several options available in this situation and the
full report outlines several ways the white-labels in the market can be customized to
accommodate you if you decide to assemble in-house
OPTIONS2013CF Crowdfunding Market Software and Solutions
THERE ARE
BASICALLY FOUR
OPTIONS AvAILABLE
TODAY THEY ARE
LICENSE STANDARD
SOLUTION
ASSEMBLE IN-HOUSE
BUILD AND DEvELOP
WITH A PARTNER
ldquo
14 2013CF MASSOLUTIONCOM
OPTIONS (CONT)2013CF Crowdfunding Market Software and Solutions
BUILD
If your requirements are unique and you do have access to in-house development
resources you have the option to build from scratch or utilize available components and
direct effort toward customization and integration
DEVELOP WITH A PARTNER
If your CFP idea is completely unique and cannot be matched by a standard solution or
assembled from individual components and you do not possess a high level of in-house
development expertise you have the option to develop your CFP with a partner As the
crowdfunding market evolves new approaches to the CFP structure are continuously
tested Requests for solutions that are significantly different from the CFP landscape as of
today have increased to a point where every white-label provider can offer customization
and partnership to some degree
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
4 2013CF MASSOLUTIONCOM
The evolution of the crowdfunding market has been exceptional over the past few
years growing from $530 million funded through 200 platforms worldwide in 2009
to $27 billion from 600 platforms last year Furthermore Massolutionrsquos recent
2013CF ndash Crowdfunding Industry Report forecasts that the total funding volume for
2013 will exceed $5 billion
Crowdfunding has proven itself as an effective tool for capital formation for social
causes and creative projects as well as startups and established companies Enabled
by hundreds of platforms all over the world that host the campaigns and facilitate
the transactions crowdfunders can now participate in this exciting new ecosystem
New platforms are launching weekly and many new players are evaluating and
developing their market strategies As crowdfunding becomes mainstream we see
indications of the market maturing exemplified by the emergence of third parties
offering crowdfunding software and solutions Therefore a multitude of options exist
for people wishing to enter the crowdfunding market and launch their own platform
The 2013CF - Crowdfunding Software amp Solutions provides you with a comprehensive
study of available solutions - the first of its kind It presents you with the range of
options and considerations to with the ldquoBuy vs Buildrdquo decision
Whether you plan to operate a platform invest in the market or simply wish to
keep track of market developments this report provides you with the necessary
reference guide to assist you in your thought process
Kevin Berg Kartaszewicz-Grell PhD
Research Director (crowdfunding) Massolution
FOREWORD
2013CF Crowdfunding Market Software and Solutions
MASSOLUTIONrsquoS
RECENT 2013CF ndash
CROWDFUNDING
INDUSTRY REPORT
FORECASTS THAT
THE TOTAL FUNDING
vOLUME FOR 2013
WILL EXCEED
$5 BILLION
ldquo Evolution of the Crowdfunding Market
5 2013CF MASSOLUTIONCOM
Over the course of four months Massolution conducted extensive market research
on available crowdfunding software and solutions Providers of crowdfunding
software and solutions were surveyed via multiple questionnaires and individual
interviews from January to April 2013
Massolution identified thirty providers of white label solutions as well as a range of
additional options for building and launching crowdfunding platforms A number of
third-party providers who offer supporting services and tools were also considered
and included where applicable
2013CF ndash Crowdfunding Market Software and Solutions report contains unique
insights on the ldquoBuy vs Buildrdquo decision process Subscribers to this report also
receive access to online profiles of thirty providers of crowdfunding software
and solutions and functionality tables for each of the five crowdfunding models
donations- rewards- equity- lending- and royalty-based crowdfunding
This report has been structured to guide the reader through the process of deciding
1) Should they enter the market
2) Should they buy or build a platform
3) If buy who should they partner with
Massolution has developed a ldquoBuy vs Buildrdquo decision matrix specifically for
crowdfunding based on standard industry approaches for software selection
METHODOLOGY AND PRESENTATION2013CF Crowdfunding Market Software and Solutions
MASSOLUTION
IDENTIFIED THIRTY
PROvIDERS OF WHITE
LABEL SOLUTIONS AS
WELL AS A RANGE OF
ADDITIONAL OPTIONS
FOR BUILDING
AND LAUNCHING
CROWDFUNDING
PLATFORMS
ldquo
6 2013CF MASSOLUTIONCOM
2013CF ndash Crowdfunding Market Software and Solutions Research Team Members
Kevin Berg Kartaszewicz-Grell
Research Director
Kevin is massolutionrsquos Research Director for Crowdfunding and Crowdsourcing
orgrsquos CAPS Program Director Research interests include Information-flow in
distributed networks and Network driven asset allocation He holds a PhD in
finance an MSc and a BSc in mathematics and economics
Paul Spinrad
Research Associate
Paul is a former editor at Wired and MAKE magazines and a crowdfunding
thought leader who catalyzed the movement for the JOBS Actrsquos crowdfunding
provision He began his career as a software engineer for government and
business applications
Maria Adamowicz
Senior Analyst
Maria is a multi-lingual researcher with a variety of financial and analytical experience
from various countries She holds a double MBA in Capital Markets (Warsaw
University) and International Business (HULT International Business School)
Mayra Sernas
Research Assistant
Mayra is a bilingual-research assistant that has supported massolutionrsquos
crowdsourcing and crowdfunding research in North America and Latin America
RESEARCH TEAM2013CF Crowdfunding Market Software and Solutions
7 2013CF MASSOLUTIONCOM
There is a revolution in how we work and how we fund business and
massolution is at the heart of it
Massolution is a unique research and advisory firm that is pioneering the
use of crowd-solutions in government institutions and in enterprises
Massolutionrsquos pioneering work includes
bull Consulting to enterprises on the adoption of crowdsourcing and
crowdfunding to leverage enterprise innovation portfolios
bull Supporting enterprises in the design and delivery of new work processes
that enable crowd labor solutions
bull Advisory work to Governments and institutions on national crowdsourcing
and crowdfunding strategies that drive social and economic impact
bull Advising nations on the design and build of future digital workforce
strategies to create new high-income digital jobs
bull Agency advisory on the use of the crowd to improve public sector processes
and drive new forms of capital formation
Massolution is helping to write the guidelines for a new way to do and
fund business
ABOUT MASSOLUTION2013CF Crowdfunding Market Software and Solutions
CROWDSOURCING INC
Crowdsourcing Inc operates two business units massolution (Research Advisory and Events) and Crowdsourcingorg (Publishing) and is headquartered in Los Angeles California at
11400 West Olympic Blvd
Suite 200
Los Angeles CA 90064
To reach a member
of the massolution or
Crowdsourcingorg team
please contact
researchcrowdsourcingorg
Media ContactJennifer Moebius
jennifercrowdsourcingorg
TwitterCrowdsourcing_
8 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
1 Introduction a Foreword
i Evolution of the Crowdfunding Market ii An Emerging Ecosystem
c About this Research i Methodology and Presentation ii Research Team iii About massolution
c Definitions and Taxonomy i Crowdfunding Defined ii Crowdfunding Models
2 Entering the Crowdfunding Market a Market Strategy
i The Crowdfunding World Map ii Funding Volumes iii Crowdfunding Activity
b Business Model i Crowdfunding Model ii Revenue Model iii Cost Components
c Market Positioning i Understand Your Crowd ii Branding and Uniqueness iii Integration with an Existing Site iv Affiliate Programs v Platform Networks
d Buy vs Build
3 Buy vs Build a Requirements d ldquoBuy vs Buildrdquo Decision Matrix
i License Standard Solution ii License a Standard Solution or Assemble In-House iii Build and Assemble In-House iv Develop with a Partner
9 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
4 Other Considerations a Ongoing Support Costs b Platform Features
i Dashboards and User Experience ii Administrators Interface iii Configurability iv Mobile Integration v Social Media Integration and Widgets
c Operational Considerations i Traffic and Scalability ii Payment Processing iii Electronic Signatures (for Lending- and Equity-Based Platforms)
5 Crowdfunding in the US a Introduction
i A New Market b Compliance
i Implications ii Tax Compliance iii Rewards and Securities iv Securities Deslers-Brokers v Transactions vi Investor Network Platforms vii Other Issues
6 Trends and Developments a Outlook
i Expansion of Build Your Own Options
ii API Markets
iii Investor Network CFPs
iv Integration of Advanced Tools
v Mobile Offerings
b Summary
i Moving Forward
Additionally subscribers to this report also receive access to online profiles of thirty
providers of crowdfunding software and solutions and functionality tables for
each of the five crowdfunding models donations- rewards- equity- lending- and
royalty-based crowdfunding
10 2013CF MASSOLUTIONCOM
CFPs worldwide cover an impressive range of categories funding models and of
course a variety of ways to provide the functionality required by the specific crowds
they service How your platform should stand out from (or mimic) the existing
platforms is basically a matter of what you want to achieve
Every prospective CFP operator should consider the following questions before
entering the market Who will be the crowdfunders and who will be the campaign
owners What type of campaigns should be hosted What is the best funding model
for these types of campaigns to offer for the crowdfunders and campaign owners
The last question not only corresponds directly to your choice of crowdfunding model
but it also has vast implications for the choice of service provider Furthermore it
also influences your business model back-end management and additional services
(such as legal advice) decisions
In order to answer the progression of questions you need to have a clear
understanding of who you are trying to service how they are to be serviced and
what platform and service providers will offer the best value In this regard the full
report outlines what you need to consider in terms of Branding and Uniqueness
Site-Integration Affiliation Programs and Platform Networks
ENTERING THE MARKET2013CF Crowdfunding Market Software and Solutions
HOW YOUR
PLATFORM SHOULD
STAND OUT FROM
(OR MIMIC)
THE EXISTING
PLATFORMS IS
BASICALLY A MATTER
OF WHAT YOU WANT
TO ACHIEvE
ldquo
2013CF MASSOLUTIONCOM11
As with any other software development task the decision to buy a solution (which
for the purposes of this research includes licensing software) build it yourself (from
scratch or by assembling components) or use a combination of these two options
depends on two essential factors uniqueness of needs and development experience
A thorough understanding of these two factors is advisable before reaching out to
potential providers This chapter explains and analyzes these two factors in context
of the Buy vs Build decision for crowdfunding software
Consideration 1
How unique are your needs
If you require a unique platform as discussed in the previous chapter then you will
either need to perform some custom development work yourself or select a solution
that provides the support of a development partner But if you plan to launch a CFP that is
based on a standard user interface then you have the option to license one of a number
of white label solutions And if itrsquos not a lending- or equity-based platform you also have
the option to assemble it yourself from available software tools and components
Consideration 2
What level of development experience do you have
Your Buy vs Build decision also depends on what professional development
resources you have in-house and are able to direct to the development of your CFP
Building your own platform will require software development and design expertise
Maintaining it will require further software expertise Lending- or equity-based
platforms also require additional ldquoback-officerdquo professional services that from a cost
and effort perspective are likely to exceed the level of technical support required
Back-office professional services include the need to obtain a broker-dealers license
or to partner with broker-dealers (note some solutions such as Community Leader
provide the optional services of an affiliated broker-dealer) lawyers accountants
and compliance officers
BUY vS BUILD2013CF Crowdfunding Market Software and Solutions
AS WITH ANY
OTHER SOFTWARE
DEvELOPMENT TASK
THE DECISION TO BUY
A SOLUTION BUILD
IT YOURSELF OR USE
A COMBINATION OF
THESE TWO OPTIONS
DEPENDS ON TWO
ESSENTIAL FACTORS
UNIQUENESS
OF NEEDS AND
DEvELOPMENT
EXPERIENCE
ldquo
2013CF MASSOLUTIONCOM12
The following decision matrix depicts how different combinations of the two factors
translate into four main solution options The remainder of this chapter outlines
each of these solution options in greater detail
BUY vS BUILD (CONT)2013CF Crowdfunding Market Software and Solutions
LicenseStandard Solution
orAssemble In-House
LicenseStandard Solution
(white label co-brandedor partner network)
Build and AssembleIn-House
(using open source orcommercially available
components)
Developwith a Partner
(custom solution provider)
High
Low High
Uniqueness of Need
Dev
elop
men
t Ex
peri
ence
Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
Figure Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
13 2013CF MASSOLUTIONCOM
There are basically four options available today They are License Standard Solution
Assemble in-House Build and Develop with a Partner
Depending of your uniqueness of needs and in-house development expertise you could
have alternative options as illustrated in the Buy vs Build decision matrix For example
if your requirements are not unique but you have a high level of in-house expertise
you have the option to either license a standard solution or assemble in house from
purchased (or free) components
As explained previously each of these options is available because the demand from
new CFPs pertains to both the uniqueness of needs and the in-house expertise
LICENSE STANDARD SOLUTION
A standardized solution will be a good fit for you if the CFP you are aiming for is somewhat
similar to the ones we see operating today and your level of in-house expertise is low
Applying an existing model to a new category of campaigns a new region or similar
strategies that do not require any tweaks or customization is well suited for one of the
many standard solutions Every provider of crowdfunding software and solutions will
have a standardized solution to offer The donation- and reward-based models are by
and large the cheapest ones the royalty-based and lending-based models require more
sophisticated back-end design and are therefore more costly and the equity-based
models are generally the most expensive
ASSEMBLE IN-HOUSE
Although a standardized solution is a good match for CFPs that do not require tweaks
or customizations you should still keep in mind the potential in-house resources that
might be able to assemble the CFP from individual components rather than purchasing
a complete solution This is particularly viable if you have a high level of in-house
development expertise There are several options available in this situation and the
full report outlines several ways the white-labels in the market can be customized to
accommodate you if you decide to assemble in-house
OPTIONS2013CF Crowdfunding Market Software and Solutions
THERE ARE
BASICALLY FOUR
OPTIONS AvAILABLE
TODAY THEY ARE
LICENSE STANDARD
SOLUTION
ASSEMBLE IN-HOUSE
BUILD AND DEvELOP
WITH A PARTNER
ldquo
14 2013CF MASSOLUTIONCOM
OPTIONS (CONT)2013CF Crowdfunding Market Software and Solutions
BUILD
If your requirements are unique and you do have access to in-house development
resources you have the option to build from scratch or utilize available components and
direct effort toward customization and integration
DEVELOP WITH A PARTNER
If your CFP idea is completely unique and cannot be matched by a standard solution or
assembled from individual components and you do not possess a high level of in-house
development expertise you have the option to develop your CFP with a partner As the
crowdfunding market evolves new approaches to the CFP structure are continuously
tested Requests for solutions that are significantly different from the CFP landscape as of
today have increased to a point where every white-label provider can offer customization
and partnership to some degree
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
5 2013CF MASSOLUTIONCOM
Over the course of four months Massolution conducted extensive market research
on available crowdfunding software and solutions Providers of crowdfunding
software and solutions were surveyed via multiple questionnaires and individual
interviews from January to April 2013
Massolution identified thirty providers of white label solutions as well as a range of
additional options for building and launching crowdfunding platforms A number of
third-party providers who offer supporting services and tools were also considered
and included where applicable
2013CF ndash Crowdfunding Market Software and Solutions report contains unique
insights on the ldquoBuy vs Buildrdquo decision process Subscribers to this report also
receive access to online profiles of thirty providers of crowdfunding software
and solutions and functionality tables for each of the five crowdfunding models
donations- rewards- equity- lending- and royalty-based crowdfunding
This report has been structured to guide the reader through the process of deciding
1) Should they enter the market
2) Should they buy or build a platform
3) If buy who should they partner with
Massolution has developed a ldquoBuy vs Buildrdquo decision matrix specifically for
crowdfunding based on standard industry approaches for software selection
METHODOLOGY AND PRESENTATION2013CF Crowdfunding Market Software and Solutions
MASSOLUTION
IDENTIFIED THIRTY
PROvIDERS OF WHITE
LABEL SOLUTIONS AS
WELL AS A RANGE OF
ADDITIONAL OPTIONS
FOR BUILDING
AND LAUNCHING
CROWDFUNDING
PLATFORMS
ldquo
6 2013CF MASSOLUTIONCOM
2013CF ndash Crowdfunding Market Software and Solutions Research Team Members
Kevin Berg Kartaszewicz-Grell
Research Director
Kevin is massolutionrsquos Research Director for Crowdfunding and Crowdsourcing
orgrsquos CAPS Program Director Research interests include Information-flow in
distributed networks and Network driven asset allocation He holds a PhD in
finance an MSc and a BSc in mathematics and economics
Paul Spinrad
Research Associate
Paul is a former editor at Wired and MAKE magazines and a crowdfunding
thought leader who catalyzed the movement for the JOBS Actrsquos crowdfunding
provision He began his career as a software engineer for government and
business applications
Maria Adamowicz
Senior Analyst
Maria is a multi-lingual researcher with a variety of financial and analytical experience
from various countries She holds a double MBA in Capital Markets (Warsaw
University) and International Business (HULT International Business School)
Mayra Sernas
Research Assistant
Mayra is a bilingual-research assistant that has supported massolutionrsquos
crowdsourcing and crowdfunding research in North America and Latin America
RESEARCH TEAM2013CF Crowdfunding Market Software and Solutions
7 2013CF MASSOLUTIONCOM
There is a revolution in how we work and how we fund business and
massolution is at the heart of it
Massolution is a unique research and advisory firm that is pioneering the
use of crowd-solutions in government institutions and in enterprises
Massolutionrsquos pioneering work includes
bull Consulting to enterprises on the adoption of crowdsourcing and
crowdfunding to leverage enterprise innovation portfolios
bull Supporting enterprises in the design and delivery of new work processes
that enable crowd labor solutions
bull Advisory work to Governments and institutions on national crowdsourcing
and crowdfunding strategies that drive social and economic impact
bull Advising nations on the design and build of future digital workforce
strategies to create new high-income digital jobs
bull Agency advisory on the use of the crowd to improve public sector processes
and drive new forms of capital formation
Massolution is helping to write the guidelines for a new way to do and
fund business
ABOUT MASSOLUTION2013CF Crowdfunding Market Software and Solutions
CROWDSOURCING INC
Crowdsourcing Inc operates two business units massolution (Research Advisory and Events) and Crowdsourcingorg (Publishing) and is headquartered in Los Angeles California at
11400 West Olympic Blvd
Suite 200
Los Angeles CA 90064
To reach a member
of the massolution or
Crowdsourcingorg team
please contact
researchcrowdsourcingorg
Media ContactJennifer Moebius
jennifercrowdsourcingorg
TwitterCrowdsourcing_
8 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
1 Introduction a Foreword
i Evolution of the Crowdfunding Market ii An Emerging Ecosystem
c About this Research i Methodology and Presentation ii Research Team iii About massolution
c Definitions and Taxonomy i Crowdfunding Defined ii Crowdfunding Models
2 Entering the Crowdfunding Market a Market Strategy
i The Crowdfunding World Map ii Funding Volumes iii Crowdfunding Activity
b Business Model i Crowdfunding Model ii Revenue Model iii Cost Components
c Market Positioning i Understand Your Crowd ii Branding and Uniqueness iii Integration with an Existing Site iv Affiliate Programs v Platform Networks
d Buy vs Build
3 Buy vs Build a Requirements d ldquoBuy vs Buildrdquo Decision Matrix
i License Standard Solution ii License a Standard Solution or Assemble In-House iii Build and Assemble In-House iv Develop with a Partner
9 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
4 Other Considerations a Ongoing Support Costs b Platform Features
i Dashboards and User Experience ii Administrators Interface iii Configurability iv Mobile Integration v Social Media Integration and Widgets
c Operational Considerations i Traffic and Scalability ii Payment Processing iii Electronic Signatures (for Lending- and Equity-Based Platforms)
5 Crowdfunding in the US a Introduction
i A New Market b Compliance
i Implications ii Tax Compliance iii Rewards and Securities iv Securities Deslers-Brokers v Transactions vi Investor Network Platforms vii Other Issues
6 Trends and Developments a Outlook
i Expansion of Build Your Own Options
ii API Markets
iii Investor Network CFPs
iv Integration of Advanced Tools
v Mobile Offerings
b Summary
i Moving Forward
Additionally subscribers to this report also receive access to online profiles of thirty
providers of crowdfunding software and solutions and functionality tables for
each of the five crowdfunding models donations- rewards- equity- lending- and
royalty-based crowdfunding
10 2013CF MASSOLUTIONCOM
CFPs worldwide cover an impressive range of categories funding models and of
course a variety of ways to provide the functionality required by the specific crowds
they service How your platform should stand out from (or mimic) the existing
platforms is basically a matter of what you want to achieve
Every prospective CFP operator should consider the following questions before
entering the market Who will be the crowdfunders and who will be the campaign
owners What type of campaigns should be hosted What is the best funding model
for these types of campaigns to offer for the crowdfunders and campaign owners
The last question not only corresponds directly to your choice of crowdfunding model
but it also has vast implications for the choice of service provider Furthermore it
also influences your business model back-end management and additional services
(such as legal advice) decisions
In order to answer the progression of questions you need to have a clear
understanding of who you are trying to service how they are to be serviced and
what platform and service providers will offer the best value In this regard the full
report outlines what you need to consider in terms of Branding and Uniqueness
Site-Integration Affiliation Programs and Platform Networks
ENTERING THE MARKET2013CF Crowdfunding Market Software and Solutions
HOW YOUR
PLATFORM SHOULD
STAND OUT FROM
(OR MIMIC)
THE EXISTING
PLATFORMS IS
BASICALLY A MATTER
OF WHAT YOU WANT
TO ACHIEvE
ldquo
2013CF MASSOLUTIONCOM11
As with any other software development task the decision to buy a solution (which
for the purposes of this research includes licensing software) build it yourself (from
scratch or by assembling components) or use a combination of these two options
depends on two essential factors uniqueness of needs and development experience
A thorough understanding of these two factors is advisable before reaching out to
potential providers This chapter explains and analyzes these two factors in context
of the Buy vs Build decision for crowdfunding software
Consideration 1
How unique are your needs
If you require a unique platform as discussed in the previous chapter then you will
either need to perform some custom development work yourself or select a solution
that provides the support of a development partner But if you plan to launch a CFP that is
based on a standard user interface then you have the option to license one of a number
of white label solutions And if itrsquos not a lending- or equity-based platform you also have
the option to assemble it yourself from available software tools and components
Consideration 2
What level of development experience do you have
Your Buy vs Build decision also depends on what professional development
resources you have in-house and are able to direct to the development of your CFP
Building your own platform will require software development and design expertise
Maintaining it will require further software expertise Lending- or equity-based
platforms also require additional ldquoback-officerdquo professional services that from a cost
and effort perspective are likely to exceed the level of technical support required
Back-office professional services include the need to obtain a broker-dealers license
or to partner with broker-dealers (note some solutions such as Community Leader
provide the optional services of an affiliated broker-dealer) lawyers accountants
and compliance officers
BUY vS BUILD2013CF Crowdfunding Market Software and Solutions
AS WITH ANY
OTHER SOFTWARE
DEvELOPMENT TASK
THE DECISION TO BUY
A SOLUTION BUILD
IT YOURSELF OR USE
A COMBINATION OF
THESE TWO OPTIONS
DEPENDS ON TWO
ESSENTIAL FACTORS
UNIQUENESS
OF NEEDS AND
DEvELOPMENT
EXPERIENCE
ldquo
2013CF MASSOLUTIONCOM12
The following decision matrix depicts how different combinations of the two factors
translate into four main solution options The remainder of this chapter outlines
each of these solution options in greater detail
BUY vS BUILD (CONT)2013CF Crowdfunding Market Software and Solutions
LicenseStandard Solution
orAssemble In-House
LicenseStandard Solution
(white label co-brandedor partner network)
Build and AssembleIn-House
(using open source orcommercially available
components)
Developwith a Partner
(custom solution provider)
High
Low High
Uniqueness of Need
Dev
elop
men
t Ex
peri
ence
Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
Figure Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
13 2013CF MASSOLUTIONCOM
There are basically four options available today They are License Standard Solution
Assemble in-House Build and Develop with a Partner
Depending of your uniqueness of needs and in-house development expertise you could
have alternative options as illustrated in the Buy vs Build decision matrix For example
if your requirements are not unique but you have a high level of in-house expertise
you have the option to either license a standard solution or assemble in house from
purchased (or free) components
As explained previously each of these options is available because the demand from
new CFPs pertains to both the uniqueness of needs and the in-house expertise
LICENSE STANDARD SOLUTION
A standardized solution will be a good fit for you if the CFP you are aiming for is somewhat
similar to the ones we see operating today and your level of in-house expertise is low
Applying an existing model to a new category of campaigns a new region or similar
strategies that do not require any tweaks or customization is well suited for one of the
many standard solutions Every provider of crowdfunding software and solutions will
have a standardized solution to offer The donation- and reward-based models are by
and large the cheapest ones the royalty-based and lending-based models require more
sophisticated back-end design and are therefore more costly and the equity-based
models are generally the most expensive
ASSEMBLE IN-HOUSE
Although a standardized solution is a good match for CFPs that do not require tweaks
or customizations you should still keep in mind the potential in-house resources that
might be able to assemble the CFP from individual components rather than purchasing
a complete solution This is particularly viable if you have a high level of in-house
development expertise There are several options available in this situation and the
full report outlines several ways the white-labels in the market can be customized to
accommodate you if you decide to assemble in-house
OPTIONS2013CF Crowdfunding Market Software and Solutions
THERE ARE
BASICALLY FOUR
OPTIONS AvAILABLE
TODAY THEY ARE
LICENSE STANDARD
SOLUTION
ASSEMBLE IN-HOUSE
BUILD AND DEvELOP
WITH A PARTNER
ldquo
14 2013CF MASSOLUTIONCOM
OPTIONS (CONT)2013CF Crowdfunding Market Software and Solutions
BUILD
If your requirements are unique and you do have access to in-house development
resources you have the option to build from scratch or utilize available components and
direct effort toward customization and integration
DEVELOP WITH A PARTNER
If your CFP idea is completely unique and cannot be matched by a standard solution or
assembled from individual components and you do not possess a high level of in-house
development expertise you have the option to develop your CFP with a partner As the
crowdfunding market evolves new approaches to the CFP structure are continuously
tested Requests for solutions that are significantly different from the CFP landscape as of
today have increased to a point where every white-label provider can offer customization
and partnership to some degree
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
6 2013CF MASSOLUTIONCOM
2013CF ndash Crowdfunding Market Software and Solutions Research Team Members
Kevin Berg Kartaszewicz-Grell
Research Director
Kevin is massolutionrsquos Research Director for Crowdfunding and Crowdsourcing
orgrsquos CAPS Program Director Research interests include Information-flow in
distributed networks and Network driven asset allocation He holds a PhD in
finance an MSc and a BSc in mathematics and economics
Paul Spinrad
Research Associate
Paul is a former editor at Wired and MAKE magazines and a crowdfunding
thought leader who catalyzed the movement for the JOBS Actrsquos crowdfunding
provision He began his career as a software engineer for government and
business applications
Maria Adamowicz
Senior Analyst
Maria is a multi-lingual researcher with a variety of financial and analytical experience
from various countries She holds a double MBA in Capital Markets (Warsaw
University) and International Business (HULT International Business School)
Mayra Sernas
Research Assistant
Mayra is a bilingual-research assistant that has supported massolutionrsquos
crowdsourcing and crowdfunding research in North America and Latin America
RESEARCH TEAM2013CF Crowdfunding Market Software and Solutions
7 2013CF MASSOLUTIONCOM
There is a revolution in how we work and how we fund business and
massolution is at the heart of it
Massolution is a unique research and advisory firm that is pioneering the
use of crowd-solutions in government institutions and in enterprises
Massolutionrsquos pioneering work includes
bull Consulting to enterprises on the adoption of crowdsourcing and
crowdfunding to leverage enterprise innovation portfolios
bull Supporting enterprises in the design and delivery of new work processes
that enable crowd labor solutions
bull Advisory work to Governments and institutions on national crowdsourcing
and crowdfunding strategies that drive social and economic impact
bull Advising nations on the design and build of future digital workforce
strategies to create new high-income digital jobs
bull Agency advisory on the use of the crowd to improve public sector processes
and drive new forms of capital formation
Massolution is helping to write the guidelines for a new way to do and
fund business
ABOUT MASSOLUTION2013CF Crowdfunding Market Software and Solutions
CROWDSOURCING INC
Crowdsourcing Inc operates two business units massolution (Research Advisory and Events) and Crowdsourcingorg (Publishing) and is headquartered in Los Angeles California at
11400 West Olympic Blvd
Suite 200
Los Angeles CA 90064
To reach a member
of the massolution or
Crowdsourcingorg team
please contact
researchcrowdsourcingorg
Media ContactJennifer Moebius
jennifercrowdsourcingorg
TwitterCrowdsourcing_
8 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
1 Introduction a Foreword
i Evolution of the Crowdfunding Market ii An Emerging Ecosystem
c About this Research i Methodology and Presentation ii Research Team iii About massolution
c Definitions and Taxonomy i Crowdfunding Defined ii Crowdfunding Models
2 Entering the Crowdfunding Market a Market Strategy
i The Crowdfunding World Map ii Funding Volumes iii Crowdfunding Activity
b Business Model i Crowdfunding Model ii Revenue Model iii Cost Components
c Market Positioning i Understand Your Crowd ii Branding and Uniqueness iii Integration with an Existing Site iv Affiliate Programs v Platform Networks
d Buy vs Build
3 Buy vs Build a Requirements d ldquoBuy vs Buildrdquo Decision Matrix
i License Standard Solution ii License a Standard Solution or Assemble In-House iii Build and Assemble In-House iv Develop with a Partner
9 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
4 Other Considerations a Ongoing Support Costs b Platform Features
i Dashboards and User Experience ii Administrators Interface iii Configurability iv Mobile Integration v Social Media Integration and Widgets
c Operational Considerations i Traffic and Scalability ii Payment Processing iii Electronic Signatures (for Lending- and Equity-Based Platforms)
5 Crowdfunding in the US a Introduction
i A New Market b Compliance
i Implications ii Tax Compliance iii Rewards and Securities iv Securities Deslers-Brokers v Transactions vi Investor Network Platforms vii Other Issues
6 Trends and Developments a Outlook
i Expansion of Build Your Own Options
ii API Markets
iii Investor Network CFPs
iv Integration of Advanced Tools
v Mobile Offerings
b Summary
i Moving Forward
Additionally subscribers to this report also receive access to online profiles of thirty
providers of crowdfunding software and solutions and functionality tables for
each of the five crowdfunding models donations- rewards- equity- lending- and
royalty-based crowdfunding
10 2013CF MASSOLUTIONCOM
CFPs worldwide cover an impressive range of categories funding models and of
course a variety of ways to provide the functionality required by the specific crowds
they service How your platform should stand out from (or mimic) the existing
platforms is basically a matter of what you want to achieve
Every prospective CFP operator should consider the following questions before
entering the market Who will be the crowdfunders and who will be the campaign
owners What type of campaigns should be hosted What is the best funding model
for these types of campaigns to offer for the crowdfunders and campaign owners
The last question not only corresponds directly to your choice of crowdfunding model
but it also has vast implications for the choice of service provider Furthermore it
also influences your business model back-end management and additional services
(such as legal advice) decisions
In order to answer the progression of questions you need to have a clear
understanding of who you are trying to service how they are to be serviced and
what platform and service providers will offer the best value In this regard the full
report outlines what you need to consider in terms of Branding and Uniqueness
Site-Integration Affiliation Programs and Platform Networks
ENTERING THE MARKET2013CF Crowdfunding Market Software and Solutions
HOW YOUR
PLATFORM SHOULD
STAND OUT FROM
(OR MIMIC)
THE EXISTING
PLATFORMS IS
BASICALLY A MATTER
OF WHAT YOU WANT
TO ACHIEvE
ldquo
2013CF MASSOLUTIONCOM11
As with any other software development task the decision to buy a solution (which
for the purposes of this research includes licensing software) build it yourself (from
scratch or by assembling components) or use a combination of these two options
depends on two essential factors uniqueness of needs and development experience
A thorough understanding of these two factors is advisable before reaching out to
potential providers This chapter explains and analyzes these two factors in context
of the Buy vs Build decision for crowdfunding software
Consideration 1
How unique are your needs
If you require a unique platform as discussed in the previous chapter then you will
either need to perform some custom development work yourself or select a solution
that provides the support of a development partner But if you plan to launch a CFP that is
based on a standard user interface then you have the option to license one of a number
of white label solutions And if itrsquos not a lending- or equity-based platform you also have
the option to assemble it yourself from available software tools and components
Consideration 2
What level of development experience do you have
Your Buy vs Build decision also depends on what professional development
resources you have in-house and are able to direct to the development of your CFP
Building your own platform will require software development and design expertise
Maintaining it will require further software expertise Lending- or equity-based
platforms also require additional ldquoback-officerdquo professional services that from a cost
and effort perspective are likely to exceed the level of technical support required
Back-office professional services include the need to obtain a broker-dealers license
or to partner with broker-dealers (note some solutions such as Community Leader
provide the optional services of an affiliated broker-dealer) lawyers accountants
and compliance officers
BUY vS BUILD2013CF Crowdfunding Market Software and Solutions
AS WITH ANY
OTHER SOFTWARE
DEvELOPMENT TASK
THE DECISION TO BUY
A SOLUTION BUILD
IT YOURSELF OR USE
A COMBINATION OF
THESE TWO OPTIONS
DEPENDS ON TWO
ESSENTIAL FACTORS
UNIQUENESS
OF NEEDS AND
DEvELOPMENT
EXPERIENCE
ldquo
2013CF MASSOLUTIONCOM12
The following decision matrix depicts how different combinations of the two factors
translate into four main solution options The remainder of this chapter outlines
each of these solution options in greater detail
BUY vS BUILD (CONT)2013CF Crowdfunding Market Software and Solutions
LicenseStandard Solution
orAssemble In-House
LicenseStandard Solution
(white label co-brandedor partner network)
Build and AssembleIn-House
(using open source orcommercially available
components)
Developwith a Partner
(custom solution provider)
High
Low High
Uniqueness of Need
Dev
elop
men
t Ex
peri
ence
Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
Figure Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
13 2013CF MASSOLUTIONCOM
There are basically four options available today They are License Standard Solution
Assemble in-House Build and Develop with a Partner
Depending of your uniqueness of needs and in-house development expertise you could
have alternative options as illustrated in the Buy vs Build decision matrix For example
if your requirements are not unique but you have a high level of in-house expertise
you have the option to either license a standard solution or assemble in house from
purchased (or free) components
As explained previously each of these options is available because the demand from
new CFPs pertains to both the uniqueness of needs and the in-house expertise
LICENSE STANDARD SOLUTION
A standardized solution will be a good fit for you if the CFP you are aiming for is somewhat
similar to the ones we see operating today and your level of in-house expertise is low
Applying an existing model to a new category of campaigns a new region or similar
strategies that do not require any tweaks or customization is well suited for one of the
many standard solutions Every provider of crowdfunding software and solutions will
have a standardized solution to offer The donation- and reward-based models are by
and large the cheapest ones the royalty-based and lending-based models require more
sophisticated back-end design and are therefore more costly and the equity-based
models are generally the most expensive
ASSEMBLE IN-HOUSE
Although a standardized solution is a good match for CFPs that do not require tweaks
or customizations you should still keep in mind the potential in-house resources that
might be able to assemble the CFP from individual components rather than purchasing
a complete solution This is particularly viable if you have a high level of in-house
development expertise There are several options available in this situation and the
full report outlines several ways the white-labels in the market can be customized to
accommodate you if you decide to assemble in-house
OPTIONS2013CF Crowdfunding Market Software and Solutions
THERE ARE
BASICALLY FOUR
OPTIONS AvAILABLE
TODAY THEY ARE
LICENSE STANDARD
SOLUTION
ASSEMBLE IN-HOUSE
BUILD AND DEvELOP
WITH A PARTNER
ldquo
14 2013CF MASSOLUTIONCOM
OPTIONS (CONT)2013CF Crowdfunding Market Software and Solutions
BUILD
If your requirements are unique and you do have access to in-house development
resources you have the option to build from scratch or utilize available components and
direct effort toward customization and integration
DEVELOP WITH A PARTNER
If your CFP idea is completely unique and cannot be matched by a standard solution or
assembled from individual components and you do not possess a high level of in-house
development expertise you have the option to develop your CFP with a partner As the
crowdfunding market evolves new approaches to the CFP structure are continuously
tested Requests for solutions that are significantly different from the CFP landscape as of
today have increased to a point where every white-label provider can offer customization
and partnership to some degree
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
7 2013CF MASSOLUTIONCOM
There is a revolution in how we work and how we fund business and
massolution is at the heart of it
Massolution is a unique research and advisory firm that is pioneering the
use of crowd-solutions in government institutions and in enterprises
Massolutionrsquos pioneering work includes
bull Consulting to enterprises on the adoption of crowdsourcing and
crowdfunding to leverage enterprise innovation portfolios
bull Supporting enterprises in the design and delivery of new work processes
that enable crowd labor solutions
bull Advisory work to Governments and institutions on national crowdsourcing
and crowdfunding strategies that drive social and economic impact
bull Advising nations on the design and build of future digital workforce
strategies to create new high-income digital jobs
bull Agency advisory on the use of the crowd to improve public sector processes
and drive new forms of capital formation
Massolution is helping to write the guidelines for a new way to do and
fund business
ABOUT MASSOLUTION2013CF Crowdfunding Market Software and Solutions
CROWDSOURCING INC
Crowdsourcing Inc operates two business units massolution (Research Advisory and Events) and Crowdsourcingorg (Publishing) and is headquartered in Los Angeles California at
11400 West Olympic Blvd
Suite 200
Los Angeles CA 90064
To reach a member
of the massolution or
Crowdsourcingorg team
please contact
researchcrowdsourcingorg
Media ContactJennifer Moebius
jennifercrowdsourcingorg
TwitterCrowdsourcing_
8 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
1 Introduction a Foreword
i Evolution of the Crowdfunding Market ii An Emerging Ecosystem
c About this Research i Methodology and Presentation ii Research Team iii About massolution
c Definitions and Taxonomy i Crowdfunding Defined ii Crowdfunding Models
2 Entering the Crowdfunding Market a Market Strategy
i The Crowdfunding World Map ii Funding Volumes iii Crowdfunding Activity
b Business Model i Crowdfunding Model ii Revenue Model iii Cost Components
c Market Positioning i Understand Your Crowd ii Branding and Uniqueness iii Integration with an Existing Site iv Affiliate Programs v Platform Networks
d Buy vs Build
3 Buy vs Build a Requirements d ldquoBuy vs Buildrdquo Decision Matrix
i License Standard Solution ii License a Standard Solution or Assemble In-House iii Build and Assemble In-House iv Develop with a Partner
9 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
4 Other Considerations a Ongoing Support Costs b Platform Features
i Dashboards and User Experience ii Administrators Interface iii Configurability iv Mobile Integration v Social Media Integration and Widgets
c Operational Considerations i Traffic and Scalability ii Payment Processing iii Electronic Signatures (for Lending- and Equity-Based Platforms)
5 Crowdfunding in the US a Introduction
i A New Market b Compliance
i Implications ii Tax Compliance iii Rewards and Securities iv Securities Deslers-Brokers v Transactions vi Investor Network Platforms vii Other Issues
6 Trends and Developments a Outlook
i Expansion of Build Your Own Options
ii API Markets
iii Investor Network CFPs
iv Integration of Advanced Tools
v Mobile Offerings
b Summary
i Moving Forward
Additionally subscribers to this report also receive access to online profiles of thirty
providers of crowdfunding software and solutions and functionality tables for
each of the five crowdfunding models donations- rewards- equity- lending- and
royalty-based crowdfunding
10 2013CF MASSOLUTIONCOM
CFPs worldwide cover an impressive range of categories funding models and of
course a variety of ways to provide the functionality required by the specific crowds
they service How your platform should stand out from (or mimic) the existing
platforms is basically a matter of what you want to achieve
Every prospective CFP operator should consider the following questions before
entering the market Who will be the crowdfunders and who will be the campaign
owners What type of campaigns should be hosted What is the best funding model
for these types of campaigns to offer for the crowdfunders and campaign owners
The last question not only corresponds directly to your choice of crowdfunding model
but it also has vast implications for the choice of service provider Furthermore it
also influences your business model back-end management and additional services
(such as legal advice) decisions
In order to answer the progression of questions you need to have a clear
understanding of who you are trying to service how they are to be serviced and
what platform and service providers will offer the best value In this regard the full
report outlines what you need to consider in terms of Branding and Uniqueness
Site-Integration Affiliation Programs and Platform Networks
ENTERING THE MARKET2013CF Crowdfunding Market Software and Solutions
HOW YOUR
PLATFORM SHOULD
STAND OUT FROM
(OR MIMIC)
THE EXISTING
PLATFORMS IS
BASICALLY A MATTER
OF WHAT YOU WANT
TO ACHIEvE
ldquo
2013CF MASSOLUTIONCOM11
As with any other software development task the decision to buy a solution (which
for the purposes of this research includes licensing software) build it yourself (from
scratch or by assembling components) or use a combination of these two options
depends on two essential factors uniqueness of needs and development experience
A thorough understanding of these two factors is advisable before reaching out to
potential providers This chapter explains and analyzes these two factors in context
of the Buy vs Build decision for crowdfunding software
Consideration 1
How unique are your needs
If you require a unique platform as discussed in the previous chapter then you will
either need to perform some custom development work yourself or select a solution
that provides the support of a development partner But if you plan to launch a CFP that is
based on a standard user interface then you have the option to license one of a number
of white label solutions And if itrsquos not a lending- or equity-based platform you also have
the option to assemble it yourself from available software tools and components
Consideration 2
What level of development experience do you have
Your Buy vs Build decision also depends on what professional development
resources you have in-house and are able to direct to the development of your CFP
Building your own platform will require software development and design expertise
Maintaining it will require further software expertise Lending- or equity-based
platforms also require additional ldquoback-officerdquo professional services that from a cost
and effort perspective are likely to exceed the level of technical support required
Back-office professional services include the need to obtain a broker-dealers license
or to partner with broker-dealers (note some solutions such as Community Leader
provide the optional services of an affiliated broker-dealer) lawyers accountants
and compliance officers
BUY vS BUILD2013CF Crowdfunding Market Software and Solutions
AS WITH ANY
OTHER SOFTWARE
DEvELOPMENT TASK
THE DECISION TO BUY
A SOLUTION BUILD
IT YOURSELF OR USE
A COMBINATION OF
THESE TWO OPTIONS
DEPENDS ON TWO
ESSENTIAL FACTORS
UNIQUENESS
OF NEEDS AND
DEvELOPMENT
EXPERIENCE
ldquo
2013CF MASSOLUTIONCOM12
The following decision matrix depicts how different combinations of the two factors
translate into four main solution options The remainder of this chapter outlines
each of these solution options in greater detail
BUY vS BUILD (CONT)2013CF Crowdfunding Market Software and Solutions
LicenseStandard Solution
orAssemble In-House
LicenseStandard Solution
(white label co-brandedor partner network)
Build and AssembleIn-House
(using open source orcommercially available
components)
Developwith a Partner
(custom solution provider)
High
Low High
Uniqueness of Need
Dev
elop
men
t Ex
peri
ence
Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
Figure Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
13 2013CF MASSOLUTIONCOM
There are basically four options available today They are License Standard Solution
Assemble in-House Build and Develop with a Partner
Depending of your uniqueness of needs and in-house development expertise you could
have alternative options as illustrated in the Buy vs Build decision matrix For example
if your requirements are not unique but you have a high level of in-house expertise
you have the option to either license a standard solution or assemble in house from
purchased (or free) components
As explained previously each of these options is available because the demand from
new CFPs pertains to both the uniqueness of needs and the in-house expertise
LICENSE STANDARD SOLUTION
A standardized solution will be a good fit for you if the CFP you are aiming for is somewhat
similar to the ones we see operating today and your level of in-house expertise is low
Applying an existing model to a new category of campaigns a new region or similar
strategies that do not require any tweaks or customization is well suited for one of the
many standard solutions Every provider of crowdfunding software and solutions will
have a standardized solution to offer The donation- and reward-based models are by
and large the cheapest ones the royalty-based and lending-based models require more
sophisticated back-end design and are therefore more costly and the equity-based
models are generally the most expensive
ASSEMBLE IN-HOUSE
Although a standardized solution is a good match for CFPs that do not require tweaks
or customizations you should still keep in mind the potential in-house resources that
might be able to assemble the CFP from individual components rather than purchasing
a complete solution This is particularly viable if you have a high level of in-house
development expertise There are several options available in this situation and the
full report outlines several ways the white-labels in the market can be customized to
accommodate you if you decide to assemble in-house
OPTIONS2013CF Crowdfunding Market Software and Solutions
THERE ARE
BASICALLY FOUR
OPTIONS AvAILABLE
TODAY THEY ARE
LICENSE STANDARD
SOLUTION
ASSEMBLE IN-HOUSE
BUILD AND DEvELOP
WITH A PARTNER
ldquo
14 2013CF MASSOLUTIONCOM
OPTIONS (CONT)2013CF Crowdfunding Market Software and Solutions
BUILD
If your requirements are unique and you do have access to in-house development
resources you have the option to build from scratch or utilize available components and
direct effort toward customization and integration
DEVELOP WITH A PARTNER
If your CFP idea is completely unique and cannot be matched by a standard solution or
assembled from individual components and you do not possess a high level of in-house
development expertise you have the option to develop your CFP with a partner As the
crowdfunding market evolves new approaches to the CFP structure are continuously
tested Requests for solutions that are significantly different from the CFP landscape as of
today have increased to a point where every white-label provider can offer customization
and partnership to some degree
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
8 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
1 Introduction a Foreword
i Evolution of the Crowdfunding Market ii An Emerging Ecosystem
c About this Research i Methodology and Presentation ii Research Team iii About massolution
c Definitions and Taxonomy i Crowdfunding Defined ii Crowdfunding Models
2 Entering the Crowdfunding Market a Market Strategy
i The Crowdfunding World Map ii Funding Volumes iii Crowdfunding Activity
b Business Model i Crowdfunding Model ii Revenue Model iii Cost Components
c Market Positioning i Understand Your Crowd ii Branding and Uniqueness iii Integration with an Existing Site iv Affiliate Programs v Platform Networks
d Buy vs Build
3 Buy vs Build a Requirements d ldquoBuy vs Buildrdquo Decision Matrix
i License Standard Solution ii License a Standard Solution or Assemble In-House iii Build and Assemble In-House iv Develop with a Partner
9 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
4 Other Considerations a Ongoing Support Costs b Platform Features
i Dashboards and User Experience ii Administrators Interface iii Configurability iv Mobile Integration v Social Media Integration and Widgets
c Operational Considerations i Traffic and Scalability ii Payment Processing iii Electronic Signatures (for Lending- and Equity-Based Platforms)
5 Crowdfunding in the US a Introduction
i A New Market b Compliance
i Implications ii Tax Compliance iii Rewards and Securities iv Securities Deslers-Brokers v Transactions vi Investor Network Platforms vii Other Issues
6 Trends and Developments a Outlook
i Expansion of Build Your Own Options
ii API Markets
iii Investor Network CFPs
iv Integration of Advanced Tools
v Mobile Offerings
b Summary
i Moving Forward
Additionally subscribers to this report also receive access to online profiles of thirty
providers of crowdfunding software and solutions and functionality tables for
each of the five crowdfunding models donations- rewards- equity- lending- and
royalty-based crowdfunding
10 2013CF MASSOLUTIONCOM
CFPs worldwide cover an impressive range of categories funding models and of
course a variety of ways to provide the functionality required by the specific crowds
they service How your platform should stand out from (or mimic) the existing
platforms is basically a matter of what you want to achieve
Every prospective CFP operator should consider the following questions before
entering the market Who will be the crowdfunders and who will be the campaign
owners What type of campaigns should be hosted What is the best funding model
for these types of campaigns to offer for the crowdfunders and campaign owners
The last question not only corresponds directly to your choice of crowdfunding model
but it also has vast implications for the choice of service provider Furthermore it
also influences your business model back-end management and additional services
(such as legal advice) decisions
In order to answer the progression of questions you need to have a clear
understanding of who you are trying to service how they are to be serviced and
what platform and service providers will offer the best value In this regard the full
report outlines what you need to consider in terms of Branding and Uniqueness
Site-Integration Affiliation Programs and Platform Networks
ENTERING THE MARKET2013CF Crowdfunding Market Software and Solutions
HOW YOUR
PLATFORM SHOULD
STAND OUT FROM
(OR MIMIC)
THE EXISTING
PLATFORMS IS
BASICALLY A MATTER
OF WHAT YOU WANT
TO ACHIEvE
ldquo
2013CF MASSOLUTIONCOM11
As with any other software development task the decision to buy a solution (which
for the purposes of this research includes licensing software) build it yourself (from
scratch or by assembling components) or use a combination of these two options
depends on two essential factors uniqueness of needs and development experience
A thorough understanding of these two factors is advisable before reaching out to
potential providers This chapter explains and analyzes these two factors in context
of the Buy vs Build decision for crowdfunding software
Consideration 1
How unique are your needs
If you require a unique platform as discussed in the previous chapter then you will
either need to perform some custom development work yourself or select a solution
that provides the support of a development partner But if you plan to launch a CFP that is
based on a standard user interface then you have the option to license one of a number
of white label solutions And if itrsquos not a lending- or equity-based platform you also have
the option to assemble it yourself from available software tools and components
Consideration 2
What level of development experience do you have
Your Buy vs Build decision also depends on what professional development
resources you have in-house and are able to direct to the development of your CFP
Building your own platform will require software development and design expertise
Maintaining it will require further software expertise Lending- or equity-based
platforms also require additional ldquoback-officerdquo professional services that from a cost
and effort perspective are likely to exceed the level of technical support required
Back-office professional services include the need to obtain a broker-dealers license
or to partner with broker-dealers (note some solutions such as Community Leader
provide the optional services of an affiliated broker-dealer) lawyers accountants
and compliance officers
BUY vS BUILD2013CF Crowdfunding Market Software and Solutions
AS WITH ANY
OTHER SOFTWARE
DEvELOPMENT TASK
THE DECISION TO BUY
A SOLUTION BUILD
IT YOURSELF OR USE
A COMBINATION OF
THESE TWO OPTIONS
DEPENDS ON TWO
ESSENTIAL FACTORS
UNIQUENESS
OF NEEDS AND
DEvELOPMENT
EXPERIENCE
ldquo
2013CF MASSOLUTIONCOM12
The following decision matrix depicts how different combinations of the two factors
translate into four main solution options The remainder of this chapter outlines
each of these solution options in greater detail
BUY vS BUILD (CONT)2013CF Crowdfunding Market Software and Solutions
LicenseStandard Solution
orAssemble In-House
LicenseStandard Solution
(white label co-brandedor partner network)
Build and AssembleIn-House
(using open source orcommercially available
components)
Developwith a Partner
(custom solution provider)
High
Low High
Uniqueness of Need
Dev
elop
men
t Ex
peri
ence
Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
Figure Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
13 2013CF MASSOLUTIONCOM
There are basically four options available today They are License Standard Solution
Assemble in-House Build and Develop with a Partner
Depending of your uniqueness of needs and in-house development expertise you could
have alternative options as illustrated in the Buy vs Build decision matrix For example
if your requirements are not unique but you have a high level of in-house expertise
you have the option to either license a standard solution or assemble in house from
purchased (or free) components
As explained previously each of these options is available because the demand from
new CFPs pertains to both the uniqueness of needs and the in-house expertise
LICENSE STANDARD SOLUTION
A standardized solution will be a good fit for you if the CFP you are aiming for is somewhat
similar to the ones we see operating today and your level of in-house expertise is low
Applying an existing model to a new category of campaigns a new region or similar
strategies that do not require any tweaks or customization is well suited for one of the
many standard solutions Every provider of crowdfunding software and solutions will
have a standardized solution to offer The donation- and reward-based models are by
and large the cheapest ones the royalty-based and lending-based models require more
sophisticated back-end design and are therefore more costly and the equity-based
models are generally the most expensive
ASSEMBLE IN-HOUSE
Although a standardized solution is a good match for CFPs that do not require tweaks
or customizations you should still keep in mind the potential in-house resources that
might be able to assemble the CFP from individual components rather than purchasing
a complete solution This is particularly viable if you have a high level of in-house
development expertise There are several options available in this situation and the
full report outlines several ways the white-labels in the market can be customized to
accommodate you if you decide to assemble in-house
OPTIONS2013CF Crowdfunding Market Software and Solutions
THERE ARE
BASICALLY FOUR
OPTIONS AvAILABLE
TODAY THEY ARE
LICENSE STANDARD
SOLUTION
ASSEMBLE IN-HOUSE
BUILD AND DEvELOP
WITH A PARTNER
ldquo
14 2013CF MASSOLUTIONCOM
OPTIONS (CONT)2013CF Crowdfunding Market Software and Solutions
BUILD
If your requirements are unique and you do have access to in-house development
resources you have the option to build from scratch or utilize available components and
direct effort toward customization and integration
DEVELOP WITH A PARTNER
If your CFP idea is completely unique and cannot be matched by a standard solution or
assembled from individual components and you do not possess a high level of in-house
development expertise you have the option to develop your CFP with a partner As the
crowdfunding market evolves new approaches to the CFP structure are continuously
tested Requests for solutions that are significantly different from the CFP landscape as of
today have increased to a point where every white-label provider can offer customization
and partnership to some degree
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
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$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
9 2013CF MASSOLUTIONCOM
TABLE OF CONTENTS FULL REPORT2013CF Crowdfunding Market Software and Solutions
4 Other Considerations a Ongoing Support Costs b Platform Features
i Dashboards and User Experience ii Administrators Interface iii Configurability iv Mobile Integration v Social Media Integration and Widgets
c Operational Considerations i Traffic and Scalability ii Payment Processing iii Electronic Signatures (for Lending- and Equity-Based Platforms)
5 Crowdfunding in the US a Introduction
i A New Market b Compliance
i Implications ii Tax Compliance iii Rewards and Securities iv Securities Deslers-Brokers v Transactions vi Investor Network Platforms vii Other Issues
6 Trends and Developments a Outlook
i Expansion of Build Your Own Options
ii API Markets
iii Investor Network CFPs
iv Integration of Advanced Tools
v Mobile Offerings
b Summary
i Moving Forward
Additionally subscribers to this report also receive access to online profiles of thirty
providers of crowdfunding software and solutions and functionality tables for
each of the five crowdfunding models donations- rewards- equity- lending- and
royalty-based crowdfunding
10 2013CF MASSOLUTIONCOM
CFPs worldwide cover an impressive range of categories funding models and of
course a variety of ways to provide the functionality required by the specific crowds
they service How your platform should stand out from (or mimic) the existing
platforms is basically a matter of what you want to achieve
Every prospective CFP operator should consider the following questions before
entering the market Who will be the crowdfunders and who will be the campaign
owners What type of campaigns should be hosted What is the best funding model
for these types of campaigns to offer for the crowdfunders and campaign owners
The last question not only corresponds directly to your choice of crowdfunding model
but it also has vast implications for the choice of service provider Furthermore it
also influences your business model back-end management and additional services
(such as legal advice) decisions
In order to answer the progression of questions you need to have a clear
understanding of who you are trying to service how they are to be serviced and
what platform and service providers will offer the best value In this regard the full
report outlines what you need to consider in terms of Branding and Uniqueness
Site-Integration Affiliation Programs and Platform Networks
ENTERING THE MARKET2013CF Crowdfunding Market Software and Solutions
HOW YOUR
PLATFORM SHOULD
STAND OUT FROM
(OR MIMIC)
THE EXISTING
PLATFORMS IS
BASICALLY A MATTER
OF WHAT YOU WANT
TO ACHIEvE
ldquo
2013CF MASSOLUTIONCOM11
As with any other software development task the decision to buy a solution (which
for the purposes of this research includes licensing software) build it yourself (from
scratch or by assembling components) or use a combination of these two options
depends on two essential factors uniqueness of needs and development experience
A thorough understanding of these two factors is advisable before reaching out to
potential providers This chapter explains and analyzes these two factors in context
of the Buy vs Build decision for crowdfunding software
Consideration 1
How unique are your needs
If you require a unique platform as discussed in the previous chapter then you will
either need to perform some custom development work yourself or select a solution
that provides the support of a development partner But if you plan to launch a CFP that is
based on a standard user interface then you have the option to license one of a number
of white label solutions And if itrsquos not a lending- or equity-based platform you also have
the option to assemble it yourself from available software tools and components
Consideration 2
What level of development experience do you have
Your Buy vs Build decision also depends on what professional development
resources you have in-house and are able to direct to the development of your CFP
Building your own platform will require software development and design expertise
Maintaining it will require further software expertise Lending- or equity-based
platforms also require additional ldquoback-officerdquo professional services that from a cost
and effort perspective are likely to exceed the level of technical support required
Back-office professional services include the need to obtain a broker-dealers license
or to partner with broker-dealers (note some solutions such as Community Leader
provide the optional services of an affiliated broker-dealer) lawyers accountants
and compliance officers
BUY vS BUILD2013CF Crowdfunding Market Software and Solutions
AS WITH ANY
OTHER SOFTWARE
DEvELOPMENT TASK
THE DECISION TO BUY
A SOLUTION BUILD
IT YOURSELF OR USE
A COMBINATION OF
THESE TWO OPTIONS
DEPENDS ON TWO
ESSENTIAL FACTORS
UNIQUENESS
OF NEEDS AND
DEvELOPMENT
EXPERIENCE
ldquo
2013CF MASSOLUTIONCOM12
The following decision matrix depicts how different combinations of the two factors
translate into four main solution options The remainder of this chapter outlines
each of these solution options in greater detail
BUY vS BUILD (CONT)2013CF Crowdfunding Market Software and Solutions
LicenseStandard Solution
orAssemble In-House
LicenseStandard Solution
(white label co-brandedor partner network)
Build and AssembleIn-House
(using open source orcommercially available
components)
Developwith a Partner
(custom solution provider)
High
Low High
Uniqueness of Need
Dev
elop
men
t Ex
peri
ence
Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
Figure Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
13 2013CF MASSOLUTIONCOM
There are basically four options available today They are License Standard Solution
Assemble in-House Build and Develop with a Partner
Depending of your uniqueness of needs and in-house development expertise you could
have alternative options as illustrated in the Buy vs Build decision matrix For example
if your requirements are not unique but you have a high level of in-house expertise
you have the option to either license a standard solution or assemble in house from
purchased (or free) components
As explained previously each of these options is available because the demand from
new CFPs pertains to both the uniqueness of needs and the in-house expertise
LICENSE STANDARD SOLUTION
A standardized solution will be a good fit for you if the CFP you are aiming for is somewhat
similar to the ones we see operating today and your level of in-house expertise is low
Applying an existing model to a new category of campaigns a new region or similar
strategies that do not require any tweaks or customization is well suited for one of the
many standard solutions Every provider of crowdfunding software and solutions will
have a standardized solution to offer The donation- and reward-based models are by
and large the cheapest ones the royalty-based and lending-based models require more
sophisticated back-end design and are therefore more costly and the equity-based
models are generally the most expensive
ASSEMBLE IN-HOUSE
Although a standardized solution is a good match for CFPs that do not require tweaks
or customizations you should still keep in mind the potential in-house resources that
might be able to assemble the CFP from individual components rather than purchasing
a complete solution This is particularly viable if you have a high level of in-house
development expertise There are several options available in this situation and the
full report outlines several ways the white-labels in the market can be customized to
accommodate you if you decide to assemble in-house
OPTIONS2013CF Crowdfunding Market Software and Solutions
THERE ARE
BASICALLY FOUR
OPTIONS AvAILABLE
TODAY THEY ARE
LICENSE STANDARD
SOLUTION
ASSEMBLE IN-HOUSE
BUILD AND DEvELOP
WITH A PARTNER
ldquo
14 2013CF MASSOLUTIONCOM
OPTIONS (CONT)2013CF Crowdfunding Market Software and Solutions
BUILD
If your requirements are unique and you do have access to in-house development
resources you have the option to build from scratch or utilize available components and
direct effort toward customization and integration
DEVELOP WITH A PARTNER
If your CFP idea is completely unique and cannot be matched by a standard solution or
assembled from individual components and you do not possess a high level of in-house
development expertise you have the option to develop your CFP with a partner As the
crowdfunding market evolves new approaches to the CFP structure are continuously
tested Requests for solutions that are significantly different from the CFP landscape as of
today have increased to a point where every white-label provider can offer customization
and partnership to some degree
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
10 2013CF MASSOLUTIONCOM
CFPs worldwide cover an impressive range of categories funding models and of
course a variety of ways to provide the functionality required by the specific crowds
they service How your platform should stand out from (or mimic) the existing
platforms is basically a matter of what you want to achieve
Every prospective CFP operator should consider the following questions before
entering the market Who will be the crowdfunders and who will be the campaign
owners What type of campaigns should be hosted What is the best funding model
for these types of campaigns to offer for the crowdfunders and campaign owners
The last question not only corresponds directly to your choice of crowdfunding model
but it also has vast implications for the choice of service provider Furthermore it
also influences your business model back-end management and additional services
(such as legal advice) decisions
In order to answer the progression of questions you need to have a clear
understanding of who you are trying to service how they are to be serviced and
what platform and service providers will offer the best value In this regard the full
report outlines what you need to consider in terms of Branding and Uniqueness
Site-Integration Affiliation Programs and Platform Networks
ENTERING THE MARKET2013CF Crowdfunding Market Software and Solutions
HOW YOUR
PLATFORM SHOULD
STAND OUT FROM
(OR MIMIC)
THE EXISTING
PLATFORMS IS
BASICALLY A MATTER
OF WHAT YOU WANT
TO ACHIEvE
ldquo
2013CF MASSOLUTIONCOM11
As with any other software development task the decision to buy a solution (which
for the purposes of this research includes licensing software) build it yourself (from
scratch or by assembling components) or use a combination of these two options
depends on two essential factors uniqueness of needs and development experience
A thorough understanding of these two factors is advisable before reaching out to
potential providers This chapter explains and analyzes these two factors in context
of the Buy vs Build decision for crowdfunding software
Consideration 1
How unique are your needs
If you require a unique platform as discussed in the previous chapter then you will
either need to perform some custom development work yourself or select a solution
that provides the support of a development partner But if you plan to launch a CFP that is
based on a standard user interface then you have the option to license one of a number
of white label solutions And if itrsquos not a lending- or equity-based platform you also have
the option to assemble it yourself from available software tools and components
Consideration 2
What level of development experience do you have
Your Buy vs Build decision also depends on what professional development
resources you have in-house and are able to direct to the development of your CFP
Building your own platform will require software development and design expertise
Maintaining it will require further software expertise Lending- or equity-based
platforms also require additional ldquoback-officerdquo professional services that from a cost
and effort perspective are likely to exceed the level of technical support required
Back-office professional services include the need to obtain a broker-dealers license
or to partner with broker-dealers (note some solutions such as Community Leader
provide the optional services of an affiliated broker-dealer) lawyers accountants
and compliance officers
BUY vS BUILD2013CF Crowdfunding Market Software and Solutions
AS WITH ANY
OTHER SOFTWARE
DEvELOPMENT TASK
THE DECISION TO BUY
A SOLUTION BUILD
IT YOURSELF OR USE
A COMBINATION OF
THESE TWO OPTIONS
DEPENDS ON TWO
ESSENTIAL FACTORS
UNIQUENESS
OF NEEDS AND
DEvELOPMENT
EXPERIENCE
ldquo
2013CF MASSOLUTIONCOM12
The following decision matrix depicts how different combinations of the two factors
translate into four main solution options The remainder of this chapter outlines
each of these solution options in greater detail
BUY vS BUILD (CONT)2013CF Crowdfunding Market Software and Solutions
LicenseStandard Solution
orAssemble In-House
LicenseStandard Solution
(white label co-brandedor partner network)
Build and AssembleIn-House
(using open source orcommercially available
components)
Developwith a Partner
(custom solution provider)
High
Low High
Uniqueness of Need
Dev
elop
men
t Ex
peri
ence
Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
Figure Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
13 2013CF MASSOLUTIONCOM
There are basically four options available today They are License Standard Solution
Assemble in-House Build and Develop with a Partner
Depending of your uniqueness of needs and in-house development expertise you could
have alternative options as illustrated in the Buy vs Build decision matrix For example
if your requirements are not unique but you have a high level of in-house expertise
you have the option to either license a standard solution or assemble in house from
purchased (or free) components
As explained previously each of these options is available because the demand from
new CFPs pertains to both the uniqueness of needs and the in-house expertise
LICENSE STANDARD SOLUTION
A standardized solution will be a good fit for you if the CFP you are aiming for is somewhat
similar to the ones we see operating today and your level of in-house expertise is low
Applying an existing model to a new category of campaigns a new region or similar
strategies that do not require any tweaks or customization is well suited for one of the
many standard solutions Every provider of crowdfunding software and solutions will
have a standardized solution to offer The donation- and reward-based models are by
and large the cheapest ones the royalty-based and lending-based models require more
sophisticated back-end design and are therefore more costly and the equity-based
models are generally the most expensive
ASSEMBLE IN-HOUSE
Although a standardized solution is a good match for CFPs that do not require tweaks
or customizations you should still keep in mind the potential in-house resources that
might be able to assemble the CFP from individual components rather than purchasing
a complete solution This is particularly viable if you have a high level of in-house
development expertise There are several options available in this situation and the
full report outlines several ways the white-labels in the market can be customized to
accommodate you if you decide to assemble in-house
OPTIONS2013CF Crowdfunding Market Software and Solutions
THERE ARE
BASICALLY FOUR
OPTIONS AvAILABLE
TODAY THEY ARE
LICENSE STANDARD
SOLUTION
ASSEMBLE IN-HOUSE
BUILD AND DEvELOP
WITH A PARTNER
ldquo
14 2013CF MASSOLUTIONCOM
OPTIONS (CONT)2013CF Crowdfunding Market Software and Solutions
BUILD
If your requirements are unique and you do have access to in-house development
resources you have the option to build from scratch or utilize available components and
direct effort toward customization and integration
DEVELOP WITH A PARTNER
If your CFP idea is completely unique and cannot be matched by a standard solution or
assembled from individual components and you do not possess a high level of in-house
development expertise you have the option to develop your CFP with a partner As the
crowdfunding market evolves new approaches to the CFP structure are continuously
tested Requests for solutions that are significantly different from the CFP landscape as of
today have increased to a point where every white-label provider can offer customization
and partnership to some degree
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
2013CF MASSOLUTIONCOM11
As with any other software development task the decision to buy a solution (which
for the purposes of this research includes licensing software) build it yourself (from
scratch or by assembling components) or use a combination of these two options
depends on two essential factors uniqueness of needs and development experience
A thorough understanding of these two factors is advisable before reaching out to
potential providers This chapter explains and analyzes these two factors in context
of the Buy vs Build decision for crowdfunding software
Consideration 1
How unique are your needs
If you require a unique platform as discussed in the previous chapter then you will
either need to perform some custom development work yourself or select a solution
that provides the support of a development partner But if you plan to launch a CFP that is
based on a standard user interface then you have the option to license one of a number
of white label solutions And if itrsquos not a lending- or equity-based platform you also have
the option to assemble it yourself from available software tools and components
Consideration 2
What level of development experience do you have
Your Buy vs Build decision also depends on what professional development
resources you have in-house and are able to direct to the development of your CFP
Building your own platform will require software development and design expertise
Maintaining it will require further software expertise Lending- or equity-based
platforms also require additional ldquoback-officerdquo professional services that from a cost
and effort perspective are likely to exceed the level of technical support required
Back-office professional services include the need to obtain a broker-dealers license
or to partner with broker-dealers (note some solutions such as Community Leader
provide the optional services of an affiliated broker-dealer) lawyers accountants
and compliance officers
BUY vS BUILD2013CF Crowdfunding Market Software and Solutions
AS WITH ANY
OTHER SOFTWARE
DEvELOPMENT TASK
THE DECISION TO BUY
A SOLUTION BUILD
IT YOURSELF OR USE
A COMBINATION OF
THESE TWO OPTIONS
DEPENDS ON TWO
ESSENTIAL FACTORS
UNIQUENESS
OF NEEDS AND
DEvELOPMENT
EXPERIENCE
ldquo
2013CF MASSOLUTIONCOM12
The following decision matrix depicts how different combinations of the two factors
translate into four main solution options The remainder of this chapter outlines
each of these solution options in greater detail
BUY vS BUILD (CONT)2013CF Crowdfunding Market Software and Solutions
LicenseStandard Solution
orAssemble In-House
LicenseStandard Solution
(white label co-brandedor partner network)
Build and AssembleIn-House
(using open source orcommercially available
components)
Developwith a Partner
(custom solution provider)
High
Low High
Uniqueness of Need
Dev
elop
men
t Ex
peri
ence
Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
Figure Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
13 2013CF MASSOLUTIONCOM
There are basically four options available today They are License Standard Solution
Assemble in-House Build and Develop with a Partner
Depending of your uniqueness of needs and in-house development expertise you could
have alternative options as illustrated in the Buy vs Build decision matrix For example
if your requirements are not unique but you have a high level of in-house expertise
you have the option to either license a standard solution or assemble in house from
purchased (or free) components
As explained previously each of these options is available because the demand from
new CFPs pertains to both the uniqueness of needs and the in-house expertise
LICENSE STANDARD SOLUTION
A standardized solution will be a good fit for you if the CFP you are aiming for is somewhat
similar to the ones we see operating today and your level of in-house expertise is low
Applying an existing model to a new category of campaigns a new region or similar
strategies that do not require any tweaks or customization is well suited for one of the
many standard solutions Every provider of crowdfunding software and solutions will
have a standardized solution to offer The donation- and reward-based models are by
and large the cheapest ones the royalty-based and lending-based models require more
sophisticated back-end design and are therefore more costly and the equity-based
models are generally the most expensive
ASSEMBLE IN-HOUSE
Although a standardized solution is a good match for CFPs that do not require tweaks
or customizations you should still keep in mind the potential in-house resources that
might be able to assemble the CFP from individual components rather than purchasing
a complete solution This is particularly viable if you have a high level of in-house
development expertise There are several options available in this situation and the
full report outlines several ways the white-labels in the market can be customized to
accommodate you if you decide to assemble in-house
OPTIONS2013CF Crowdfunding Market Software and Solutions
THERE ARE
BASICALLY FOUR
OPTIONS AvAILABLE
TODAY THEY ARE
LICENSE STANDARD
SOLUTION
ASSEMBLE IN-HOUSE
BUILD AND DEvELOP
WITH A PARTNER
ldquo
14 2013CF MASSOLUTIONCOM
OPTIONS (CONT)2013CF Crowdfunding Market Software and Solutions
BUILD
If your requirements are unique and you do have access to in-house development
resources you have the option to build from scratch or utilize available components and
direct effort toward customization and integration
DEVELOP WITH A PARTNER
If your CFP idea is completely unique and cannot be matched by a standard solution or
assembled from individual components and you do not possess a high level of in-house
development expertise you have the option to develop your CFP with a partner As the
crowdfunding market evolves new approaches to the CFP structure are continuously
tested Requests for solutions that are significantly different from the CFP landscape as of
today have increased to a point where every white-label provider can offer customization
and partnership to some degree
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
2013CF MASSOLUTIONCOM12
The following decision matrix depicts how different combinations of the two factors
translate into four main solution options The remainder of this chapter outlines
each of these solution options in greater detail
BUY vS BUILD (CONT)2013CF Crowdfunding Market Software and Solutions
LicenseStandard Solution
orAssemble In-House
LicenseStandard Solution
(white label co-brandedor partner network)
Build and AssembleIn-House
(using open source orcommercially available
components)
Developwith a Partner
(custom solution provider)
High
Low High
Uniqueness of Need
Dev
elop
men
t Ex
peri
ence
Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
Figure Crowdfunding Solutions ldquoBuy vs Buildrdquo Decision Matrix
13 2013CF MASSOLUTIONCOM
There are basically four options available today They are License Standard Solution
Assemble in-House Build and Develop with a Partner
Depending of your uniqueness of needs and in-house development expertise you could
have alternative options as illustrated in the Buy vs Build decision matrix For example
if your requirements are not unique but you have a high level of in-house expertise
you have the option to either license a standard solution or assemble in house from
purchased (or free) components
As explained previously each of these options is available because the demand from
new CFPs pertains to both the uniqueness of needs and the in-house expertise
LICENSE STANDARD SOLUTION
A standardized solution will be a good fit for you if the CFP you are aiming for is somewhat
similar to the ones we see operating today and your level of in-house expertise is low
Applying an existing model to a new category of campaigns a new region or similar
strategies that do not require any tweaks or customization is well suited for one of the
many standard solutions Every provider of crowdfunding software and solutions will
have a standardized solution to offer The donation- and reward-based models are by
and large the cheapest ones the royalty-based and lending-based models require more
sophisticated back-end design and are therefore more costly and the equity-based
models are generally the most expensive
ASSEMBLE IN-HOUSE
Although a standardized solution is a good match for CFPs that do not require tweaks
or customizations you should still keep in mind the potential in-house resources that
might be able to assemble the CFP from individual components rather than purchasing
a complete solution This is particularly viable if you have a high level of in-house
development expertise There are several options available in this situation and the
full report outlines several ways the white-labels in the market can be customized to
accommodate you if you decide to assemble in-house
OPTIONS2013CF Crowdfunding Market Software and Solutions
THERE ARE
BASICALLY FOUR
OPTIONS AvAILABLE
TODAY THEY ARE
LICENSE STANDARD
SOLUTION
ASSEMBLE IN-HOUSE
BUILD AND DEvELOP
WITH A PARTNER
ldquo
14 2013CF MASSOLUTIONCOM
OPTIONS (CONT)2013CF Crowdfunding Market Software and Solutions
BUILD
If your requirements are unique and you do have access to in-house development
resources you have the option to build from scratch or utilize available components and
direct effort toward customization and integration
DEVELOP WITH A PARTNER
If your CFP idea is completely unique and cannot be matched by a standard solution or
assembled from individual components and you do not possess a high level of in-house
development expertise you have the option to develop your CFP with a partner As the
crowdfunding market evolves new approaches to the CFP structure are continuously
tested Requests for solutions that are significantly different from the CFP landscape as of
today have increased to a point where every white-label provider can offer customization
and partnership to some degree
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
13 2013CF MASSOLUTIONCOM
There are basically four options available today They are License Standard Solution
Assemble in-House Build and Develop with a Partner
Depending of your uniqueness of needs and in-house development expertise you could
have alternative options as illustrated in the Buy vs Build decision matrix For example
if your requirements are not unique but you have a high level of in-house expertise
you have the option to either license a standard solution or assemble in house from
purchased (or free) components
As explained previously each of these options is available because the demand from
new CFPs pertains to both the uniqueness of needs and the in-house expertise
LICENSE STANDARD SOLUTION
A standardized solution will be a good fit for you if the CFP you are aiming for is somewhat
similar to the ones we see operating today and your level of in-house expertise is low
Applying an existing model to a new category of campaigns a new region or similar
strategies that do not require any tweaks or customization is well suited for one of the
many standard solutions Every provider of crowdfunding software and solutions will
have a standardized solution to offer The donation- and reward-based models are by
and large the cheapest ones the royalty-based and lending-based models require more
sophisticated back-end design and are therefore more costly and the equity-based
models are generally the most expensive
ASSEMBLE IN-HOUSE
Although a standardized solution is a good match for CFPs that do not require tweaks
or customizations you should still keep in mind the potential in-house resources that
might be able to assemble the CFP from individual components rather than purchasing
a complete solution This is particularly viable if you have a high level of in-house
development expertise There are several options available in this situation and the
full report outlines several ways the white-labels in the market can be customized to
accommodate you if you decide to assemble in-house
OPTIONS2013CF Crowdfunding Market Software and Solutions
THERE ARE
BASICALLY FOUR
OPTIONS AvAILABLE
TODAY THEY ARE
LICENSE STANDARD
SOLUTION
ASSEMBLE IN-HOUSE
BUILD AND DEvELOP
WITH A PARTNER
ldquo
14 2013CF MASSOLUTIONCOM
OPTIONS (CONT)2013CF Crowdfunding Market Software and Solutions
BUILD
If your requirements are unique and you do have access to in-house development
resources you have the option to build from scratch or utilize available components and
direct effort toward customization and integration
DEVELOP WITH A PARTNER
If your CFP idea is completely unique and cannot be matched by a standard solution or
assembled from individual components and you do not possess a high level of in-house
development expertise you have the option to develop your CFP with a partner As the
crowdfunding market evolves new approaches to the CFP structure are continuously
tested Requests for solutions that are significantly different from the CFP landscape as of
today have increased to a point where every white-label provider can offer customization
and partnership to some degree
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
14 2013CF MASSOLUTIONCOM
OPTIONS (CONT)2013CF Crowdfunding Market Software and Solutions
BUILD
If your requirements are unique and you do have access to in-house development
resources you have the option to build from scratch or utilize available components and
direct effort toward customization and integration
DEVELOP WITH A PARTNER
If your CFP idea is completely unique and cannot be matched by a standard solution or
assembled from individual components and you do not possess a high level of in-house
development expertise you have the option to develop your CFP with a partner As the
crowdfunding market evolves new approaches to the CFP structure are continuously
tested Requests for solutions that are significantly different from the CFP landscape as of
today have increased to a point where every white-label provider can offer customization
and partnership to some degree
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
2013CF MASSOLUTIONCOM
EXAMPLES FROM THE FULL REPORT2013CF Crowdfunding Market Software and Solutions
15
23 2013CF MASSOLUTIONCOM
Naturally the representation of current crowdfunding activity is neither a guarantee
that there is room for additional platforms nor does it rule out the possibility that
some of the less active combinations of category focus and crowdfunding model can
be lucrative The bar chart below is simply an overview of where the market is today
CROWDFUNDING ACTIVITY (CONT)
MARKET STRATEGYEntering the Crowdfunding Market
Social Causes
Business and Entrepreneurship
Films and Performing Arts
Music and Recording Arts
Energy and Environment
Fashion
Art (general)
Information and Communication Technology
Journalism Books Photo and Publishing Arts
Science and Technology
Donation andor Rewards Financial Return
0 5 10 15 20 25 30
Figure Financial versus Non-Financial crowdfunding activities
2013CF MASSOLUTIONCOM40
Donation Reward Lending Equity Royalty
Africa Unsigned uuml uuml uuml
Arctic Island uuml uuml uuml
Community Funded uuml uuml
CommunityLeader uuml uuml uuml
Crowd Valley uuml uuml uuml
Crowdculture uuml
CrowdfundHQ uuml uuml
Crowdhoster uuml uuml
Crowdnetic uuml uuml uuml uuml
Engage uuml uuml
FundRazr uuml uuml
Hybrid Funding uuml uuml uuml uuml uuml
Investedin uuml uuml uuml uuml
isePankur uuml
Katipult uuml uuml uuml uuml uuml
Launcht uuml uuml uuml uuml
Mimoona uuml uuml
MIPISE uuml uuml
MyAzimia uuml uuml
Rebirth Financial uuml uuml uuml
Rebuilding Society uuml
Sponsorcraft uuml uuml
Startnext uuml uuml
Symbid uuml uuml
Table of Visions uuml uuml uuml
Towema uuml uuml
Up and Funding uuml uuml uuml uuml
WEBclusive uuml uuml uuml uuml uuml
WiSEED uuml uuml
Zimplemoney uuml
LICENSE STANDARD SOLUTION (CONT)
Buy vs Build
ldquoBUY VS BUILDrdquo DECISION MATRIX
2013CF MASSOLUTIONCOM57
Aside from differences in basic features other functional considerations need to
be taken into account Below we outline three that require careful attention when
building your CFP solution Two of these Payment Processing and Electronic
Signatures involve the integration of third-party providers
TRAFFIC AND SCALABILITY
CFPs that do not anticipate high traffic or transaction volumes have the option to use
low budget but simple to implement DIY solutions An example would be a WPMU
(Wordpress Multi-User) Fundraising site running on an inexpensive WordPress
hosting plan But high-traffic or high-transaction volume CFPs will require optimized
solutions such as turnkey or custom hosting with high capacity and service level
guarantees
PAYMENT PROCESSING
CFPs use various payment processors to initiate the transactions that transfer
funds from the crowdfunders to the campaign owner Some are based on payment
card systems which require credit card details others initiate transfers via direct
bank transfers with account and routing numbers Fees are usually charged per
transaction as a percentage of the amount being transferred or some combination
of the two
The payment processor deducts these fees directly at the time the transaction is
executed representing an added cost that reduces that amount of funds raised by
the campaign owner So long as the payment system is reliable and secure CFPrsquos
that utilize payment processing services that offer a competitive fee will be more
attractive to the campaign owner
INTRODUCTION
Other Considerations
ASIDE FROM
DIFFERENCES IN
BASIC FEATURES
OTHER FUNCTIONAL
CONSIDERATIONS
NEED TO BE TAKEN
INTO ACCOUNT
ldquo
OPERATIONAL CONSIDERATIONS
2013CF MASSOLUTIONCOM54
CFP solutions vary in terms of the features they offer and the feature sets offered
depend largely on the types of crowdfunding models supported Some general
categories of features are discussed below Via your link on the sections of this
report hosted on Crowdsourcingorgrsquos Web portal you can see a comparison by
CFP provider of the most common features included within each of their offerings
Additional more unique features offered by CFPs are described in the individual CFP
provider profiles also accessible via the online sections of this report
DASHBOARDS AND USER EXPERIENCE
The CFP solutions include two different components of the front-end interface for
participants of the CFP the campaign owners and funders and a third interface
the admin dashboard for the platform operators CFP solutions differ across these
three elements You should carefully review all of these interfaces to see if they
provide what you need The tables included in the online section of this report list
some of the features that these interfaces include
ADMINISTRATORS INTERFACE
All administrator interfaces should let you revoke user accounts and perform other
housekeeping Some give you helpful views into transaction activity while others
leave you to view that data through your payment provider Some administrator
interfaces let you control the sitersquos design or upload new style-sheet files while
others do not mdash which may be good for preventing poorly presented pages from
going live on the site Some administrator interfaces will include graphs of page-by-
page traffic to your site (via Google Analytics for example) while others do not With
build-your-own providers the administrator interface to is a function of how the
provider has designed the administrators interface
INTRODUCTION
Other Considerations
CFP SOLUTIONS
VARY IN TERMS
OF THE FEATURES
THEY OFFER AND
THE FEATURE
SETS OFFERED
DEPEND LARGELY
ON THE TYPES OF
CROWDFUNDING
MODELS SUPPORTED
ldquo
PLATFORM FEATURES
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
16 2013CF MASSOLUTIONCOM
The 2013 edition of the report on crowdfunding software and solutions enables
you to decide whether you should buy or build your CFP You will learn exactly what
is available on the market and you will get exclusive access to contact details and
provider information for all the 30 providers highlighted in the report
bull Get the complete overview of the market for crowdfunding software
bull Inform your decision making with unique market insights
bull Execute an efficient search for providers
bull Review your options based of direct provider comparisons
bull Get contact details to all the providers in the market
PURCHASE NOW2013CF Crowdfunding Market Software and Solutions
THE 2013 EDITION
OF THE REPORT ON
CROWDFUNDING
SOFTWARE AND
SOLUTIONS ENABLES
YOU TO DECIDE
WHETHER YOU
SHOULD BUY OR
BUILD YOUR CFP
ldquo
PURCHASEThis version is an excerpt only To purchase a full version of the
report please click here or visit wwwcrowdsourcingorgresearch
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY
17 2013CF MASSOLUTIONCOM
Get all the benefits of massolution researchCrowdfunding platforms raised $27 billion and successfully funded more than 1 million campaigns in 2012
Massolution forecasts an 81 increase in global crowdfunding volumes in 2013 to $51 billion
Get the current state of the crowdfunding market and how 2012 stacked-up against previous years An in-depth analysis of the global market and CF models campaign statistics growth rates geographic breakoutsand more
$245
Get full comprehensive insight into the global crowdfunding industry Almost 100 pages of custom exclusive research including all 2012 CF data global market depth market growth and fundingvolumes best-performing industries geos and markets legal frameworksand more
$495
Get the crowdfunding market trends and outlook for 2013 and beyond An in-depth analysis of the global market and CF models predictions for regions and platforms exclusive information about emerging platforms and models enterprise crowdfundingand more
$295
wwwcrowdsourcingorgresearchLearn more by visiting us at
BUY BUY BUY