Successful Crowdfunding Campaigns
Crowdfunding is an opportunity for success and an established capital engine for startups around the world. Companies who may have had slim-to-none odds of obtaining angel funding are now able to fulfill their dream of reaching their investment goals. Everyone appreciates an inspiring success story and the world of crowdfunding has many to offer. Please enjoy the following stories of crowdfunding success:
1. FORM 1. When 3D printing started gaining popularity in 2012, every tech-conscious person wanted one. Consumers dreamed of the possibility to simply print out everyday items at their home instead of having to pay for them. To satisfy this demand, the engineers at Formlab created their own 3D printer, FORM 1, and made it an affordable solution to the much pricier competition without sacrificing quality. Thier original Kickstarter target amount was $100,000 but after gathering the support of 2,000+ printing enthusiasts they reached nearly $3 million in funding. Let’s give them and their successful crowdfunding campaign a big, 3D, round of applause!
2. Pebble. Based on a pre-sale crowdfunding model, Pebble Technology’s campaign on Kickstarter was the result of several failed attempts at raising enough capital the traditional way. The pitch featured an ultra-smart product – an e-paper wristband watch compatible with both iphones and Androids that notified the user of important alerts (calls, texts, emails, etc.). The campaign gathered a whooping $1 million in the first 28 hours and ended with just over $10 million. Although the company had effectively accumulated minimal funding from angel investors in the past, it aimed for more money that, without crowdfunding, would be inaccessible. Yes, crowdfunding can score eight figure sums!
3. Zombies, Run! For those who can’t seem to find enough motivation to get out and jog, this incredibly successful Kickstarter campaign aimed to “make the thrill of running even better with a game and story delivered through your headphones.” With an original goal of $12,500, this running game & audio venture for iOS/Android ended up raising $72,627 from 3,464 backers. An online zombie apocalypse has since taken place with more than 400 projects seeking funding that are based on the undead. Crowdfunding, yet again, proves to be a match for everyone, non-discriminating of gender, race, color, social class… or heartbeat.
4. ARKYD: A Space Telescope for Everyone. Taking a selfie in space may have seemed too sci-fi before the company Planetary Resources went live on Kickstarter to make it possible. The successful 2013 campaign aimed to reach a goal of $1,000,000 and raised a total of $1.5 million through its 17,614 Earthly supporters. This large group of investors was joined by celebrities such as Sir Richard Brason (the Chairman of Virgin Group) who enthusiastically supported Planet Resource’s mission to mine asteroids by personally funding $100,000. According to Planetary Resources, ARKYD was one of the top 25 Kickstarter campaigns and the most successful crowdsourcing campaign for a space project in history.
5. HELP THE HALEYS HAVE A BABY! This successful crowdfunding project was the brainchild of Jessica and Sean Haley who struggled with infertility issues for three years and could not afford the high costs of IV fertilization. After being rejected by Kickstarter in June 2011, the Haley’s went on to seek support using Indiegogo. Their original campaign aimed for a target amount of $5,000 and in just four months they raised $8,050. Not long after the campaign was closed, Jessica learned she was pregnant and gave birth to a baby boy in April 2012. Her heartwarming pitch and the crowd’s overwhelming response are proof that crowdfunding is a fertile soil.
At the time of these campaigns, crowdinvesting was not available to the masses. Once equity crowdfunding becomes legal, all non-accredited investors will be able to invest in products and services in exchange of equity – not a prototype printer or a Pebble watch. By owning a piece of the company, these investors will have the opportunity to share in the profit if the business is sold or undergoes any other financial success. Many reward-based crowdfunding investors have been left with gifts or memorabilia while the company is sold for billions of dollars. Equity crowdfunding investors will be getting a slice of the pie.
Successful crowdfunding campaigns prove that people have the ability to detect projects with potential. Whether they invest in exchange for a product, to make a profit, or because their heart tells them to, this method of financing speaks to a broad range of entrepreneurs. Crowdfunding has the power to finance innovative products that change lives around the world and, as we’ve seen, can help create life as well. With this in mind, the capabilities of crowdfunding are endless.
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