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Anyone Crowdfunded or Interested in it?
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GetRichOrdie Offline

Posts: 68
Joined: Aug 2016
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Post: #1
Anyone Crowdfunded or Interested in it?
Im a product developer and entrepreneur, and looking to do a crowdfunding project very soon, around a new type of text-based coding game. Im curious if any members have looked into, done this or are interested in the growing sector of Crowdfunding, especially as a means of promoting and developing creative ideas into market ready successes.
The top funded crowdfunding list is very eye opening, with top projects raising over $100 million+. Certainly a game changer for business minded folks who have a good idea that they want to develop

Specifically im looking at which country to start my project in, as I am normally living in Australia, but have an EU passport, so considering to base myself out of the UK (3rd most generous country after Canada and US ) but ideally looking to base myself out of the USA for my next projects

Some of the ideas on kickstarter are just plain gimmicks too, like the fidget tool, so makes me think that if you have a great idea you could have success there with the right promotion/marketing
(This post was last modified: 10-11-2016 04:40 AM by GetRichOrdie.)
10-11-2016 04:39 AM
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H1N1 Offline
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Joined: Jun 2014
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Post: #2
RE: Anyone Crowdfunded or Interested in it?
I've looked into it. I run a business, and we are just successfully closing our first round of investment.

Crowdfunding is a bit of a gimmick in most cases. If you look into it, a successful funding round typically requires you to have 70% of your investment promised in advance (many sites won't actually allow you to post an opportunity unless you meet this criteria). It's fine if you are looking to just top up an investor pool with investors you won't have to answer to (always a good thing). Otherwise, you are much better off going down the traditional route of angels/private investment.

All the advice I've had is to avoid VC funding for as long as possible (ideally altogether), and that is the feeling I've had too from my meetings with them. The VCs make a very seductive pitch, and in my experience have been prepared to offer significant amounts of money. However, this comes with a thousand strings and if you are entrepreneurial then my own impression is that VC funding will always be an awkward and uncomfortable fit.

Private money is almost always best for first round funding. There is lots of it about - interest rates are practically zero and lots of rich people are looking for places to put their money. It is always a worry when you take an innovative idea to people and ask them to write big cheques that you'll get laughed out of the room, or that it won't prove as exciting as you expect it to in your own mind. I've been fortunate, and my business has been particularly well received, but my experience is that dealing with individuals who are enthusiastic about you, and your business, is much more rewarding than dealing with the corporates, even if they are talking about writing cheques with a couple of extra zeros on them.

I think there is an attitude, which I'm not suggesting you have but which one must be wary of, that kickstarter et al. are opportunities to raise soft money - that you can pitch any old idea and find a bunch of people to give you £1-500k. The reality is very different. Typically too these platforms take c.7% of the money you raise as commission. On half a million that's a years salary for a bright young graduate. That's a lot of money to give away (especially as it's costing you equity).
10-11-2016 05:16 AM
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bodacious Offline

Posts: 19
Joined: Oct 2016
Post: #3
RE: Anyone Crowdfunded or Interested in it?
Can anyone referral a good company to create a crowdfunding site. Located in the US. I´m also looking into it.
10-13-2016 06:29 AM
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