Using Blockchain To Build A Startup Funding App Like GetEquity
Funding issues are fatal for startups. 90% of startups fail within the first five years. And in addition to no expertise, poor marketing, lack of research, financing needed to sustain the business are major reasons.
Nevertheless, the law of diffusion tells us if there are 2.5% innovators of the total market then, 13.5% of early adopters are also there. These people have the desire to support and be a part of something that underpins their beliefs, even if they need to spend a little.
And targeting such a group a Nigerian duo has developed a startup funding app like GetEquity. Digging deeper into this startup, founded in 2019, we have found how it opens up a threshold of funding opportunities.It’s noteworthy, how incredibly they have utilized mobile app development and Blockchain to make it easier for startups to raise funds.
The point to brag about GetEquity is nothing more than implying entrepreneurs a futuristic and sustainable mobile app idea. Basically, operating legal entities in Nigeria only can list on this startup funding app. Though investors around the world can access the platform and find their type of startup to be a part of.
The concept is already promising and features such as escrow funds, deal rooms, KYC, Tokenizing, ensuring security attract both types of users: companies and investors. Besides, its revenue structure also works in everyone’s favor. Read further if you ever wanted to invent something for the startup community. As in a marketplace where ideas find their true supporters and anyone can invest in companies that share their values or mission.
With that, let’s stop beating around the bush and talk business, i.e., How to make an app like GetEquity.
Business Model Of GetEquity: how to make money with your startup funding app?
Supporting mission-driven founders, the platform lets them digitize their assets via tokens to bring liquidity. In other words, GetEquity is a blockchain-based marketplace for companies and investors to trade digital assets by connecting investors and syndicates.
Moreover, users can find the platform on the web, Google Play, and the Apple Store. Thus, its business model aims to make startup funding and investment democratized and accessible to the world of venture capital.
Now, if one develops an app like GetEquity, what would he get in return? Or how does GetEquity generate revenue?
Well, the start funding platform offers free and paid plans.
- It charges listing fees from startups to raise funds.
- Besides, there is a premium plan to unlock restricted features.
- Additionally, it also charges small trading fees for digital assets.
How Does GetEquity Work?
We must say, the app has a very exquisite user experience and user interface, which is crucial for any app to sustain users. It also makes it easy to find funding options as well as track records. Not to mention, the availability on both Android and iOS widens the platform reach.
Now, without further ado, let’s check out how the startup funding app actually works from both perspectives: company and investor.
So, to raise funds from individuals who share the same belief, a company has four easy steps to follow.
- Sign up as a company;
- Complete your KYC registration and link the bank account;
- Request a token;
- Invite your friends, family, investors, or employees to your private deal room;
Now, coming to the investor perspective.
- Sign up as an investor;
- Complete your KYC registration and link the bank account;
- Find a startup and buy securities/tokens for as little as US$10;
- Request sell tokens if one doesn’t want to invest further;
- Withdraw money in the same wallet the bank account is linked to.
What features does your startup funding app must have to simplify the process?
App features are an essential part of building an app that you list to define the project requirements. It goes without saying that feature sets have everything to do with your user journey. Basically, your must-have app features help users accomplish their desired action on your app. In a startup funding app, for example, companies strive for raising funds and investors invest in startups.
So, how does a startup funding app feature set look? Let’s uncover features that not only complete the user journey but also render a delightful experience.
User registration is what bifurcates them into investors and companies. Every user must choose if they are individuals who want to invest in startups or a company that wants to raise capital. Thereby they get a form of basic details to sign up on the platform.
It’s a must verification process for both types of users to prevent fraudulent or unauthorized access to the startup funding marketplace.
To make it fun and personalized, giving users a chance to choose to be called as they want is a proven strategy. Besides, by picking a desired and unique username, users can create their identity on the platform.
Link bank account
Linking the bank account is a primary action, and of course, mandatory for investors and companies. Without connecting to bank accounts, neither investors would invest, nor startups get credited the money.
The listing feature is for the startup companies that want to let investors know about their missions and services/products and attract like-minded investors to fund. On the other hand, investors get the list of the companies that have listed themselves for raising capital.
It’s the crux of the startup funding app that enables companies to tokenize their assets. In simple words, companies digitize their real equity or securities so that it becomes accessible to investors and easier to trade.
The investment could be a variable feature that shows results based on the user. For example, a company gets insights into how much capital it’s received and from whom. In contrast, investors will see the list of investment amounts they have spent with companies’ names they’ve invested in.
Investors can only buy tokenized equity or invest in their desired startup via eWallet available on the platform. Hence, investors will be required to withdraw the amount from their bank account and fund their wallets. This feature also lets investors track their wallet balance.
Again, the notification feature can benefit both investors and fundraising companies, and here’s how: Companies can update their investors about monthly progress or milestones’ achievements via sending push notifications. On the contrary, investors can keep track of their investment return (if any) or companies’ valuation and decide when to sell tokens or not.
It’s a private room that offers functionalities of trading and transferring equity among the room members. It also empowers the room admin to manage and monitor transactions across the room.
It can be a noteworthy feature in a startup funding app because of the increasing investment craze. Typically, it allows users to gift tokens they’ve purchased to friends and family available on the platform. Tokens could be of the company with the same motive the gift recipient fancy. Thus, it makes the perfect gift for someone.
Recommending a read: How To Estimate The Crowdfunding App Development Cost?
How Much Can You Expect The Cost To Develop An App Like GetEquity?
Thinking that hiring mobile app developers is the only cost to bear for building an app like GetEquity is wrong. To make it easy to understand, let’s show you the factors affecting the cost to create a startup funding app like GetEquity.
Cost to develop a startup funding app by complexity levels:
- Basic Fintech App $30,000 and $50,000
- Average Fintech App $50,000 and $80,000
- Complex Fintech App $80,000 +
Cost to develop a mobile app by the type of development team:
- In-house team $90,000
- Local agency $120,000
- Outsourcing company $50,000
Note: these are approximate costs, and the actual cost is subject to change as per your requirement and location.
Technologies that may raise your startup funding app development cost:
- API Integrations
- Data Analytics and Personalizations
- eWallet development
- Other customize features
Before you start wondering how we get such data, let me tell you that we are a renowned mobile app development company. Our mission is to guide as many startuppers and enterprises as possible to leverage the current technology. With the team of tech nerds, we are able to provide sustainable and profitable solutions.
Moreover, we also fetch or present new ideas for our budding entrepreneurs to jump on the tech startup bandwagon. Since decentralized and blockchain is the talk of the town, GetEquity really caught our attention. We think the concept has the potential to disrupt the startup funding approach.
If you could, how would you innovate the startup funding?