The Customer is the New Investor | Crowdfunding

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Crowdfunding is a concept that has been in practice for much longer than we are able to directly observe it. From the beginning of time, innovators have pitched their ideas to their family and friends who have given their money and support to see the idea come to fruition. However, now that we are living in the digital age and have the ability to communicate our ideas across the globe with the press of a button the potential for success from crowdfunding is much more likely. Nevertheless, using a crowdfunding platform like Kickstarter or Indiegogo doesn't necessarily guarantee that your entrepreneurial idea will take off. Whether you are trying to collect funding the old-fashioned way, or using a digital tool there are still some overarching aspects that will either make or break your idea.

The Unsuccessful

MudTails is described as a line of apparel for all ages that specializes in barnyard animals with a positive voice and sign language designs. I will be honest, when I first visited their Kickstarter page, it took me about five minutes of mulling through their page to figure out what they actually are and I'm still not totally sure that I get it. I think this may be central to why their crowdfunding campaign did not work out. The lack of a central, understandable purpose also hints at an even bigger problem at hand: is there a legitimate problem to be solved with this product? While the average customer may not think of apparel companies as problem solvers or entities that make the world a better place, the root of all successful businesses is making life better in some way. 

Take the fitness brand Gymshark for example. Gymshark was started by UK teenager, Ben Francis, who saw a problem with how fitness apparel was being made and wanted to create something that was crafted for athletic performance and stylish enough to wear outside of the gym. Francis saw the problem, created a way to solve it and now Gymshark is one of the most recognizable and successful fitness brands in the world, making more than $120 million in sales in 2018. 

While I somewhat see the problem that MudTails is trying to solve, providing positive role models to children and infants and teaching basic sign language before spoken word is learned, the problem is not a pressing one. While there definitely is an audience for this type of product, as there are millions of people who are parents of young children, this product doesn't directly make their life any easier. Additionally, MudTails lacks a what I call a professional polish to their overall company, design and branding. It looks and feels like something that someone started in their basement. Which in some markets, like homemade goods, is an attractive quality; however, in a crowdfunding situation it is important to present yourself and your business as an already established business. If people are doubting your professionalism and knowledge of business, it is much more difficult to convince them to hand over their money. 

The Successful

The next startup, COOLEST COOLER, is a perfect example of a product that solves a problem. Typical coolers are clunky, one-purpose objects that often break and make picnics, camping, boating trips a little bit more difficult. The COOLEST COOLER took all of the problems with the typical cooler and solved them. It comes with a ton of features including an LED light, USB charging port, built-in Bluetooth speaker, ice-crushing and rechargeable blender, built-in bottle opener, storage for cutlery, and more. Even tackling some of the more mundane problems like adding a gear tie-down function and reinforcing the wheels to ensure the highest quality product. Additionally, they took all of the fantastic features and housed them in an aesthetically-pleasing cooler design that just about anyone can get on board with. They presented the product in a well-produced video and detail each feature professionally. Anyone who visits their page knows exactly what they are about and seem to be a company that people can trust. With all of these factors working together, it is no surprise to me that they well surpassed their Kickstarter goal and I will have to look more into this for a possible birthday present for my dad. 

Another successful start-up product that I found on Kickstarter that peaked my interest is the PrintPen. This product is something that I have never seen before and I am not alone in my interest as it is currently at $247,000 of their $30,000 goal with still 20 days to go. A portable printer that can print on almost any surface that is powered by a mobile application is a product that I could see most widely used by other small businesses to manufacture their product and by larger businesses to prototype ideas before committing to large and expensive professional print jobs. The aspect that the ink is also skin-safe is an interesting feature that I could see concert venues and bars using, so that they could ensure unique designs to curb frauds. The way that they present this product is professional and easy to understand with an idea that can be applied to a variety of different industries and solve multiple problems. 

Investors and Community

At the end of the day, the tools of Kickstarter and Indiegogo are incredible tools to help get your start-up or entrepreneurial idea off the ground. While Shark Tank and other similar shows have popularized Angel Investors, they may not be the smartest route to go or you may not have the access to a network of ultra-rich investors who are willing to give you a chunk of change for your idea. There is also often stipulations with Angel Investors, that may bankrupt you in the long run. With platforms like Kickstarter and Indiegogo the control of what benefits you give to your investors is completely in your hands. The other amazing aspect of these platforms is the community that you build with your customers. They have a hand in the development process of your product and can provide insight and feedback before the final product is released. If you are smart, and listen to your crowdfunding investors they will want to spend more and support your product because they feel part of the process. 

The first step is always believing in yourself and your product/business idea. The next step is presenting your idea in a professional and organized way so that people believe in you and the promises you pledge to complete with your product/business idea. I find start-ups and entrepreneurial ideas extremely interesting and I cannot wait to see what life-changing products continue to come out of crowdfunding platforms like Kickstarter and Indiegogo.