Crowds for start-ups
Just how good has the crowdfunding process been in getting start-ups up and running and helping them become successful businesses? Well, such funding platforms have given many projects a fighting chance, when no-one else would, reckons Forbes, which has picked out five crowdfunding campaigns that spawned multi-million dollar companies:
Oculus launched a Kickstarter campaign in 2012 that easily beat its $250,000 goal and raised a total of $2.4 million. Facebook acquired it for $2 billion in cash and stock just two years later.
Pebble raised over $10 million from nearly 69,000 backers on Kickstarter, beating its $100,000 goal on the first day of the campaign. By the end of last year, the company had shifted more than 2 million wearables around the world.
SkyBell picked up $600,000 in a 30-day campaign on Indiegogo for its smart video doorbell. The outfit can now count Amazon Echo, Nest, Honeywell and Comcast among its partners.
Tile, which helps track down lost items, beat a $200,000 funding goal within 24 hours of its campaign launching on Kickstarter, going on to raise a total of $2.6 million. Forbes now tags it as a ‘thriving technology company with a portfolio of products that consumers have fallen in love with’.
Bragi raised $3.4 million during the crowdfunding campaign for its wireless intelligent headphones. The company has just announced that its kit will get access to Amazon Alexa next month, while the gear has been described as ‘thebest truly wireless earbuds you can buy’.
Forbes, which reports that the total capital raised using crowdfunding in 2016 reached over $60 billion, has joined Microsoft in backing next month’s Global Crowdfunding Convention in Las Vegas. And Ruth Hedges, CEO and Founder of the event is major evangelist, saying that “with a proper ecosystem of crowdfunding technology, education, and training, start-ups and growing enterprises can increase their ability to raise the capital they need, scale up, and compete in today's world.”