Market Validation with Crowdfunding
A few things happen when you think of an
You think you are the first one
You think everyone will love it
The reality is
You might not be the first one
Everyone might not love it
So after you have your idea, the next
three steps are usually
2. Build a plan
3. Build a product
The question is when should you use
crowdfunding to validate your
product? After which step do you
After Step 1?
After Step 2?
After Step 3?
The correct answer is after:
Crowdfunding ≠ Market Research
You’re going to need some proof that:
1. You have an actual product or prototype
2. That you know what you’re doing
3. That some people actually want to use
4. A kick ass video
You have a product and some people
actually want it, now this is where
crowdfunding comes in.
Now you get to see how many people want
to actually buy your product via
It could be a 100, 1000 or none
Be prepared for anything
Why is crowdfunding a
It lowers entry and growth
barriers for new businesses by
Requires a lot of paperwork and takes a
while to go through
Family and Friends
They only have so much money to give
Where would you get startup capital
5 years ago?
They don’t usually place risky bets and
you have to be in business for at least 2
They are hard to get a hold of and might
ask for a big chunk of your business
Don’t get anything wrong, these
options have their place in the world.
Crowdfunding provides a way for
new businesses to jump start that
initial process and gain their first