5 questions to ask yourself before crowdfunding
TRANSCRIPT
questions to ask yourself before crowdfunding 5
alexis HOUSSOU @a_houssou
#1. why?
crowdfunding preorders
preorders vc funding
validate product market fit validate pricing
build a community
finance 1st batch
preorders
preorders product launch
#2. are you ready to
launch?
3 first days
= 28% total funding
average among $500k + funded projects.
pre-campaign formula
OK
ready to launch means…
=
email sign-ups
conversion rate
pre-campaign formula:
funding goal ≥ ×
× average pledge
target = $500,000 xxxx? email sign-ups
ex:
target = $500,000
1st 3 days = $150,000
xxxx? email sign-ups
ex:
target = $500,000
1st 3 days = $150,000
day 1 = goal = $50,000
xxxx? email sign-ups
ex:
target = $500,000
1st 3 days = $150,000
day 1 = goal = $50,000
$100 average pledge
xxxx? email sign-ups
ex:
target = $500,000
1st 3 days = $150,000
day 1 = goal = $50,000
$100 average pledge 500 backers on day 1
xxxx? email sign-ups
ex:
target = $500,000
1st 3 days = $150,000
day 1 = goal = $50,000 10% conversion rate
$100 average pledge 500 backers on day 1
5,000 email sign-ups
ex:
5,000 emails
10% conversion
ex:
$50,000 goal ≥
×
× $100 pledge
#3. manufacturable
prototype?
average shipping delay
= 7 months
breakdown of $500k+ funded & shipped projects per shipping delay.
4%
44%
31% 20%
on time 1-5 months
6-10 months
11-20 months
average expected time between kickstarter and shipping
4 months.
average actual time between kickstarter and shipping
10+ months.
manufacturable ≠ working prototype
manufacturable =
factory validated =
precise bill of materials (=)
(you know your costs)
#4. which
platform?
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
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?
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
-
✚
tips to decide:
are your target customers on kickstarter?
can you raise funding before launching a campaign?
do you/your team have past e.commerce experience?
#5. what if
you fail?
december 2013 august 2014
why?
december 2013 august 2014
goal too high =
$125,000 corrected goal =
$50,000
never reached reached in 48h
set a low goal that you can reach quickly.
✔
december 2013 august 2014
campaign= december 13 delivery = august 14
campaign= august 14 delivery = february 15
campaign launch date
must fit customer needs for the product.
(i.e. it’s easier to sell a cooler during summer even if shipping is in February)
✔
brought to you by
follow @elephantsandv follow @hardware_club
x