5 questions to ask yourself before crowdfunding
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By Alexis Houssou, Partner at Elephant & Ventures, during our monthly HardAware meetup in Paris : http://hardaware.thefamily.co
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5 questions to ask yourself before crowdfunding
- 1. questions to ask yourself before crowdfunding 5
- 3. #1. why?
- 4. crowdfunding preorders preorders vc funding preorders product launch validate product market fit validate pricing build a community finance 1st batch preorders
- 5. #2. are you ready to launch?
- 6. 3 first days = 28% total funding average among $500k + funded projects.
- 7. ready to launch means… pre-campaign formula = OK
- 8. pre-campaign formula: email sign-ups average pledge conversion rate ≥ funding goal × ×
- 9. ex: target = $500,000 1st 3 days = $150,000 5,000 email sign-ups day 1 = goal = $50,000 10% conversion rate $100 average pledge 500 backers on day 1
- 10. ex: 5,000 emails $100 pledge 10% conversion $50,000 goal ≥ × ×
- 12. average shipping delay = 7 months 4% 44% 31% 20% on time 1-5 months 6-10 months 11-20 months breakdown of $500k+ funded & shipped projects per shipping delay.
- 13. 4 months. average expected time between kickstarter and shipping
- 14. 10+ months. average actual time between kickstarter and shipping
- 15. manufacturable ≠ working prototype
- 16. manufacturable = factory validated = precise bill of materials (=) (you know your costs)
- 18. kickstarter indiegogo ✚ - 7M+ organic community best media coverage Kickstarter brand stamp US-based company needed hard to get data flexibility easy to get data no US-based company needed less audience less prestige many #BS# projects vs
- 19. tips to decide: is indiegogo’s flexible plan for you ? can you easily set up a company in the US? what is the real goal of your crowdfunding campaign?
- 20. kickstarter selfstarter 7M+ organic community easy media coverage Kickstarter brand stamp traffic => kickstarter page KS community ≠ your community Post-kickstarter “valley of death” cut middlemen fees traffic => own website optimize paid visits hard without seed funding strong PR resources needed no leverage on existing community vs ✚ -
- 21. tips to decide: are your target customers on kickstarter? can you raise funding before launching a campaign? what product development stage are you at?
- 22. #5. what if you fail?
- 23. december 2013 august 2014
- 24. brought to you by follow @elephantsandv follow @hardware_club x