In today’s economy, businesses are struggling to raise their finances. After the global recession hit in 2008, it became very difficult to get a business loan. Things are only just starting to pick up, but progress is slow. If you need a cash injection to get your business off the ground, there aren’t many options! You can ask family or friends, you can seek out investment, or you can take your chances at the bank. The truth is, none of these avenues are ideal.
Instead, entrepreneurs are turning their attention to crowdfunding. It’s a relatively new concept that allows companies to pitch for investment from real people. You’ll make a pitch, create a video, and explain your product and vision. Then, you’ll set a target figure, and ask your online community for donations. Their money is only taken if you reach the full goal. Sounds simple. Sounds fun. And, sometimes, a campaign takes off in such fantastic fashion, the results are phenomenal. Today, we’re looking at some of the biggest success stories.
- Oculus Rift
Some of the biggest success stories have come from the gaming world. Independent companies don’t have the financial backing of large industry. So they take to Kickstarter and leverage the enormous and fierce gaming community. Oculus Rift is probably the most famous crowdfunding success out there. It’s a virtual reality headset for gamers which started out with a $250,000 target. By the time the campaign ended, the founders had reached $2.4 million! And, if that wasn’t enough, they were then bought out by Facebook for $2 billion. The VR headset ships in early 2016. Let’s hope the wait is worth it!
If you’ve been following technology blogs, you’ll know that 3D printers are the talk of the town. They have been for almost a decade when it was predicted they’d change the world. And, in some industries, they certainly have. We are now printing human limbs, and even organs in the medical industry, for example. But, they haven’t yet become a household product. Form1 aimed to change that, by building an affordable, practical 3D printer for the home. The tech community embraced the idea with fierce passion, sending over $3 million in funding. It’s a great way to deliver the best service to your customers, because they’re involved in the process.
You might assume that Apple were the first to introduce the concept of smart watches. The Apple Watch quickly took the world by storm after it was announced last year. But, they weren’t the first to come up with it. Before Apple Watch was Pebble. It was the first real smartwatch on the market. It looked cool, and was highly advanced. It earned $1 million in a day before maxing out at $10 million.
Crowdfunding has been influential in the creative industries where films and music albums are regularly funded. There are two big success stories here. First, the Veronica Mars Movie, which turned to Kickstarter after it was turned down by big studios. Secondly, Zach Braff’s film ‘Wish I Was Here’. It’s a great way for independent creators to raise money outside of the bigger systems.
If you haven’t figured out a way to secure funding for your venture yet, think about crowdfunding. It might just be the answer you’re looking for.