Loading...
Answers
MenuAny suggestions on raising funds on kickstarter (or other crowdfunding) for a business innovation model as opposed to a product innovation model?
Examples would be great. Thanks
Answers
Okay so I am going to lead by saying I have a bias regarding crowdfunding. Now on to my answer:
Kickstarter is for products not companies. If you create a good product and do a kickstarter campaign you will be able to use the funds raised for the product to build your company.
https://www.crowdfunder.com/ however is for businesses so it might be a better bet for you.
https://www.prosper.com/ would be my recommendation because it is crowdfunded loans. This is real money without strings attached other than the fact that it is a loan. They cap out at 35,000 so if you need serious capital then you should look at a bank or an investor.
In general (with prosper being the only exception) I hate crowdfunding sites. There are a couple of reasons but this article sums it all up pretty well: http://www.zdnet.com/article/despite-its-popularity-i-hate-kickstarter/
Prosper is very different in that you are getting a loan, a non predatory interest rate (6.68% to 35.97% APR depending of course on your credit score, the amount you are asking etc.) and you get the cash in days that you can use without lifting your skirt so to speak.
To disclose here, I am a member of Prosper and help fund loans. However the only reason why I do is because I believe in their company more than any other crowdfunded site out there. Unlike sites like Kickstarter, the site is overseen by the SEC, has accredited investors, people that actually put there money into the site to fund loans have to deal with the IRS and the SEC so you as one getting a loan are protected like crazy.
I would love to discuss more about your business and help guide you through the process if you are interested. Give me a call.
There are other crowdfunding groups that would take a business innovation but let's not start there if you have not gotten your idea to a certain level and secondly there might be some better approaches.
You need to set up some basics first to test your idea and get some real time customers or not. I don't want you wasting your precious time and anything that can't test out first.
Call me and let's see if what you has merit and the best approach to get it off the ground which I have had many that have worked and not worked it's all in the testing on the cheap to see if you should go to the next step without spending a wad of money first and finding out then it was a bad idea.
Call me and let's look at the options.....Ken Queen IncomeForBabyBoomers.com
Kickstarter is a great platform for doing both. If you were trying to raise money for the development of a tangible product or invention, Quirky is a crowdfunding platform made specifically for this but I've had a successful campaign on kickstarter raising money for my invention, so that works too. Kickstarter is more known.
The biggest mistake most people make raising money through crowdfunding is that they don't give enough value in return for the amount of money they are asking for their pledge levels. That goes for a business innovation model or product innovation model. For each you need to prepare your campaign a few months ahead of time, have a great marketing plan in place, tell a great story with a great quality video, and also give backers reward levels that they can't turn down.
If you want to take your campaign seriously you should have a dozen members on board and plan to spend over $10,000 on campaign.
Treat crowdfunding as if you were running a business.
Hope this helps!
Related Questions
-
When launching a product on Kickstarter, how and when do you get press coverage?
It's all about building a relationship with these journalists and bloggers. You want them in your pocket long term. Ultimately, they are usually interested in the same things as you, which gives you a chance to connect on a deeper level and make an online friend. If you make a friend, then maybe they can even introduce you to their other journalist friends when the time is right. Ps: when you finally do send them your stuff, keep it short and make sure your visuals get the point off without them needing to read a description. Visual storytelling is huge. Remember: people don't like to readJM
-
Any opinions on raising money on Indiegogo for an app?
Apps are difficult to fund on IndieGoGo as few are successful, and we rarely take them on as clients. Websites like http://appsfunder.com/ are made for that very reason, but again, difficult to build enough of a following willing to pay top dollar for an app that could very well be free, already existing in the marketplace. A site that is gaining more traction you may want to look into would be http://appsplit.com/. Again, Appsplit Is Crowdfunding For Apps specifically.RM
-
Is it a good time to launch a (crowdfunding) product before/during/after the December holidays when every company is competing for buyer's attention?
In the past 4 years of marketing successful crowdfunding campaigns on both Kickstarter and Indiegogo, we've consistently seen drops in consumer traffic to these sites during the holiday months, as potential backers are purchasing products for the holidays that they can gift, not necessarily backing projects/products that will ship next year.RM
-
What are the qualities of a good fundraiser?
As someone who has founded and fundraised for a social venture, I can tell you that the fundraiser must be the CEO or President. Fundraising for a non-profit is all about building a relationship with your donor base, and the donation is often as much because the donor likes the person & people as much as they like the work being done by the Foundation. One of the most difficult paradoxes of raising for a non-profit web platform is that the more someone becomes excited by the potential of the platform, the more that they would prefer to invest cash for equity than simply donate and looking back on it, I think that would have simplified things for my social enterprise and would have been able to attract far more capital. The other avenue that you can explore is to build in tipping or crowdfunding for your operation directly into the online experience but that will only be a viable source of funds with significant traffic and thus, the operating capital required to grow the business requires proactive outreach to supporters. Happy to speak with you about this in more detail in a call.TW
-
How do I raise money for my small e-commerce business on Amazon?
I'd need to understand a bit more about your business, but I suspect one answer is to work toward getting an accounts receivable-based credit line. Amazon is a good company that pays it's bills. Lenders will either loan against the Amazon receivables or buy them from you at a discount. This approach is expensive but if cash flow is your issue, worth exploring.CY
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.