CDPS_G4_Crowdfunding_Module 4

Interview with Zach Dunham
The design and technology outreach lead at Kickstarter

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Vivian

Eric

Dora

Cindy

Kickstarter creator

The Public Radio

Pre-tuned single station FM radio in a mason jar 46881_1_640px

How did the idea come up?

Taken the electronics class from Edx that MIT offered

Collaboration with Spencer Wright

Great chance to continue learning about electronics

Kickstarter ended up becoming a great place to test the idea

What preparation need to do before launching a campaign?

Setting expectations

Asked what they would pay for the product

Gauge a general price point 25000 $

Set a goal

How'd to know it would be appealing to people?

500 Backers supporting and that would be a successful

Do a Beta test run on Grand stress

Get feedback

How to make sure it was successful when still running ?

Friends and family

Interview on the Canadian public broadcasting

Raised just under $90000 on Kickstarter

15,000 or so on in their website

How it manufactured ?

Bought in bulk from essentially Ball Jar

The parts of the radio manufactured in China/ Taiwan

The circuit board from Massachusetts.

Advice

Try to visit a factory beforehand and the tail-end

Create a healthy margins for the product/ Know break-even margin

Understand what's your cost

Sense of the various scenarios

Crowd Funding for Startups

Common way to launch or sustain a startup

Can work to raise additional money

Protect your idea

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Purple

Orange

Pre-existing to raise additional funds

Gray

One time business

New and Ongoing as organizations

Fashion, Games, Technology, Food, Production Design

Film, Theater/Dance, Arts

People come frequently

Can access resources and additional funding (eg. employees)

Can Validate the idea is good or not

Can help initial funds to launch your company

Fashion, Games,

Can also be a deliberate process

IP

Who does Crowd Funding?

People are copying ideas of Kickstarters and producing before them.

patents, trade secrets and copyrights

Mostly Tech and Designs for patents and secrets

Filing first (4,000 to 6,000)USD

the most powerful way of discouraging competition

Comics, Music, Publishing for copyrights

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Average age of a Kickstarter funder is 39 years old

50% married

17% are minorities

Successful projects with high goals
Innovative projects
Effort that went into preparation Generally technology or design projects

Women and crowdfunding

Women tend to worse in raising funds

Interview with Antina Lee Screen Shot 2020-12-24 at 11.00.37 PM

COO of Perseous Mirror Company

raised 100,000 at kickstarter

Fraud and Failure: Why the Crowd Can be Smart

But they do better in crowdfunding

Kickstarter

Start with Wh, what is raising money for?

13%better than men

large projects slightly higher chance of failure

smaller projects have a higher chance of failure

Smart Home Ecosystem product that help people

include Information about a day
next bus
messages over the night , emails ,
camera for selfie

The Wisdom of Crowds

that argues that crowds are really smart

The Madness of Crowds

crowdfunding is receptive in the past for hardware

dont get lot of venture capital funding

wanna search any other similiar companies in the market

Supporting area they care about

found out crowdfunding as a really good opportunity for early adopters

What preparation did before launching the campaign ?

Activism

3 or 4 months bucket preparation

1. own research about market                     2. try to understand customer segment 

That women are actually interested in supporting other women under represented

Women want to support each other

  1. click splash page and collect how many (data)
    4.Typical stuff (video,Q&A, paper) PR
    Potential Journalist
    

Any effect from the press ?

Made the Press

snowball effect

Where are you banking ?

Search the traffic
A. Kickstarter
B. Facebook

Heavily on Facebook

crowds or experts were better at judging things

you get crowds together you get things like witch hunts

when they worked together

Theater Case image

money for arts: Kickstarter > National Endowment

But FB is not a huge drvier for campaign numbers.

What Other Professional help?

Feeling, Planning and Manage the campaign process

At the beginning

Having trouble is unlikely to happen
E.g: Video not rendering

Hectic

In the middle

Things would get into routine

More manageable

Shiipping Costs

At the end

Things go crazy again

heavy and irregular sized objects
internationally

Shipping fees is included in campaign numbers

plan out your campaign goal

Planning

project percent of your campaign international backers

Suppliers

Duration

Informing delivery dates

Other issues

Don't be rush 🚫

Starting earlier at least 6 months earlier

building our Email list

Facebook ads

Initial research

Kickstarter page

$15,000 would be 10,000 e-mails on your list

Conservative: 50,000 e-mails

Time: at least 6-12 months

Media: Social Marketing image

Actually sign a contracts

include a link to your Website splash page

get feedback from

positive loop

Close community

Managing backers when the campaign is down and still on delivery

Commit to updates once a month first of all, and then in between

Keeping up to the backers questions

Kickstarter webpage

E-mailing privately

Being Consistent

Telling the backers what to expect and delivering on that

National Public Radio

Sharing openly the process of how the product were making

Interest a lot of people

96% are employed

40% have full-time job

not a way for earning money

Find free lancer

Affordable

Raised than expect

Using data

Last 24 hours

can't unpledge towards the last 24 hours

these are relatively small ranges, and
the failure rates are pretty low

fraud rates are low

Linus's law image

the experts-good at minimizing risk

The Crowd-have wider tastes Iand
be more tolerant of successes and failures

have enough people looking at a problem, to someone the answer's going to be trivial and they'll know how to solve it right away.

there's lots of people looking at the project.

threshold that to give time to evaluate the project

can't run away with the cash necessarily

shut down projects that people flag as potentially fraudulent

people can't run away with the cash necessarily

spotting potential fraud