Necessity is a mother…
Designers Drew Cox and Adam Brandejs needed a 3D scanner but couldn’t afford it.
So they built one.
The first one was made out of duct tape and lasers from the dollar store, but it worked so well, they realized countless other designers would want one too.
They filmed a short video, put it on Indiegogo and asked for $81,000 to help them realize the Matter and Form 3D Scanner.
Less than a month later:
They raised almost $500,000 from hundreds of people who didn’t know them or each other. They just liked the idea and wanted to be part of it.
They aren’t alone:
Crowdfunding sites like Kickstarter and Indiegogo help companies and individuals raise donations from many smaller online contributors.
Sites like GoFundMe and Fundrazr help people raise money to help causes or people facing tough challenges.
Patreon lets artists find recurring support from patrons.
When the long-time ban on general solicitation was lifted in Fall 2013, sites catering to actual investment began springing up, sites like CircleUp, Crowdfunder.com and AngelList.
Not every project finds funding. Some coming tantalizingly close but don’t cross the finish line.
Kickstarter has a higher success rate, with more than 40 per cent being successful compared to Indiegogo’s less than 15 per cent.Of those that make it, a new study suggests that successful Kickstarter campaigns share certain language and characteristics, like reciprocity, generosity and social proof.
Pebble is an awesome example:
Pebble, a watch that connects to a wearer’s smart phone, clearly knew exactly what language to use and buttons to push.
When the company failed to raise the capital it needed, it launched a Kickstarter campaign, raising over $10 million dollars in a month.
Since then, more than 85,000 units have since been sold and the product began shipping in January 2014.
It’s not for everyone:
With all of the buzz around crowd-funding, more traditional professions and organizations are looking at how they might be able to dip their toes in the water.
For most, it won’t be easy, requiring a cultural shift that embraces frequent, very human and conversational communications and openness.
Yup, storytelling:
Storytelling is essential and a bit of urgency/scarcity doesn’t hurt. A good video can be worth its weight in gold and solid perks are a must for donation type sites.
“We had no budget and no mailing list,” said Cox. “We just had something we knew other people would care about. And we never forgot that this campaign belonged to the community that was supporting it. They are at the heart of it all and we made sure they knew it every step of the way.”
And that is what crowd-funding is all about.
Susan McLennan
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