posted a blog discussing Kickstarter and using it (or other crowdfunding methods) as a means to raise startup
capital. We featured an NWEN startup called Green Simian who was smack
dab in the middle of trying to raise $100,000. The end result was that
they were unable to reach that amount which on Kickstarter which means they wouldn't
get any of their dough.
Not to be deterred (very entrepreneur-esque) they reloaded their campaign with a lower capital request. This time, Greem Simian got their money. We asked them what they liked about the process and what they learned from it. Here's what they have to say:
What I (Green Simian) really love about crowdfunding is as follows:
1. Benefit # 1: No VC/Angel ties. As strategic as it may be, funding for equity is time consuming and diluting. With crowdfunding i get a shortcut to the consumer, real market conditions and just enough capital to build and deliver product.
2. Benefit # 2: Tap into peer feedback. Capital aside, peer feedback has been hugely valuable. We eliminated at least 3 significant design errors that we never saw, but the 300+ backer feedback unraveled. So you see, the "brainfunding" is just as important as the crowdfunding aspect of this experiment.
3. Learning # 1: Get into crowdfunding when you are in beta, not earlier. Its one step behind retail, funders want to see the real product you are working on, less so Photoshop rendering.
4. Learning # 2: Press. Get your friends in the media lined up to write about you and spark a viral uptake.
5. Learning # 3: Video and Rewards. Find the hipster within and build an amazing video. Build creative rewards too. I can tell you that I have a lot to learn on this front.
If you need more proof that this works, look at these two projects, it will blow your mind: