Crowdfunding: Why it Matters
Simple intro to crowdfunding, using a startup (http://www.smarttoybox.com/) as an example.
Posted on September 1st, 2016
Over the last several years crowdfunding has become an increasingly popular way for people to support great ideas. As its name says, it is the way to raise money online and fund a project from many individual supporters. It allows creators to make their ideas a reality with the power of the crowd. The public can back the idea with pledges of money in return for ‘rewards’ that reflect the money contributed.
So, why should you participate? Why not wait until the product is in the store? For start, you get to see new and innovative products before the public does. And by funding the project, you are able to participate more directly in the development of the product. And why do we need funding anyway? Because the cost of the machinery and tools needed to produce Smart Toyboxes is very high, but the price per unit goes down as the number of units goes up. With crowdfunding, a little bit from many people will easily reach that sum. And once the campaign has been successfully funded, the money is transferred to our account and we will begin the manufacturing process.
And it’s all about creating a team and creating a bond between the creators and supporters. With sharing and spreading the word, you automatically become a brand ambassador for the product. Because the more people are behind a product, spreading the word, getting more pledges, the more likely it is going to succeed. It is pretty amazing what a good idea and a team of amazing people who believe in it can do.
That’s where you come in! Once our crowdfunding campaign has launched, you will be able to pledge money through the Indiegogo website. Depending on how much money you have pledged, you will receive certain rewards, such as our toy box. By getting the toy box through the campaign, you will be receiving it with huge discounts, at a much cheaper price than it will be later on, in stores. You will also be one of the first in the world to get the toy box once it has been manufactured. If you believe in the project and want to support it, but for some reason don’t need the toy box itself, you can pledge for different rewards or just share! You will still get a BIG thank you from the team!
Pebble Watch, Oculus Rift and FitBit, things that are now a part of our everyday life, have started out as a crowdfunding campaign and are now shaping lives of millions. So, crowdfunding is a great way to push a product you like to the market, while getting your hands on it before anyone else.
Originally published at www.smarttoybox.com on September 1, 2016.