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Three Things You Need to Know Before Crowdfunding

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Three Things You Need to Know Before Crowdfunding

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Three Things You Need to Know Before Crowdfunding

  1. 1. THREE THINGS YOU NEED TO KNOW BEFORE CROWDFUNDING www.dragoninnovation.com @dragoninnovate
  2. 2. Quick Survey
  3. 3. DRAGON INNOVATION BACKGROUND
  4. 4. Robotic Corvette Powered Dino
  5. 5. Agenda
  6. 6. Journey from $100,000 to $100 Price
  7. 7. My Real Baby ~ 100kVelociraptor ~100k +
  8. 8. Rooomba and Scooba
  9. 9. Agenda
  10. 10. We are going to take something as insanely complex as manufacturing consumer electronics and make it feel easy. VISION
  11. 11. MANUFACTURING IS CURRENTLY COMPLEX Going from prototype to production can be a long journey with many unknown unknowns: • COGS, tooling and manufacturing costs • Lead times • Permanence of Quality • Iteration cycles • DFM • Factory Selection and Management • Team Scalability • Schedule & Project Management • Specialized skills (ME / EE / SW/ Q / SC / Logs)
  12. 12. Lot’s of Moving Parts
  13. 13. HARDWARE REQUIRES CASH Typical funding sequence: •Bootstrapping •Friends and Family •Angels •Crowdfunding •Venture Capital
  14. 14. BE CAREFUL YOU DON’T SELL SOMETHING YOU CAN’T BUILD
  15. 15. THE THREE THINGS YOU NEED TO KNOW 1. How much cash do you need? 2. How long is it going to take? 3. What is the status of your Design for Manufacturing?
  16. 16. HOW MUCH CASH DO YOU NEED?
  17. 17. MANUFACTURING FACTORS THAT DRIVE FUNDING REQUIREMENTS •NRE for Prototype to DFM •COGS •Tooling Costs •Manufacturing Costs •Crowdfunding Transaction Costs
  18. 18. UNDERSTANDING COST OF GOODS SOLD (COGS) •The COGS of your product will determine the financial success of your company •Create a Detailed Bill of Materials (BOM) •Separate Mechanicals (Plastic, Metal, etc.), Purchased, Electronics, Packaging, etc. •Include Labor •Include Scrap, Markup, Overhead and Factory Profit •For each line item, separate into core operations for greatest transparency.
  19. 19. HOW LONG WILL IT TAKE?
  20. 20. Idea DeliverCrowdfund Manufacture PERCEIVED PRODUCT TIMELINE Prototype D E F G H I J K L M N O P Q R S T U V ZW X YA B C
  21. 21. Idea DeliverCrowdfund Manufacture MORE REALISTIC PRODUCT TIMELINE Proto CF Prep X Y ZK L M N O P Q R S T U V WI JF G HC D EA B
  22. 22. SCHEDULE •Many consumer products are driven by the Holiday Season (which has a fixed date). •Plan contingency in your schedule. Things never go according to plan. •Have an onsite presence at the Factory •Track schedule carefully and take corrective actions early. •Avoid: “There is never time to do it right the first time, but there is always time to do it again. ”
  23. 23. THE ROAD TO PRODUCTION
  24. 24. WHAT IS THE STATUS OF YOUR DESIGN FOR MANUFACTURING?
  25. 25. TYPICAL STAGES •Paper sketches •Handmade prototype (popsicle sticks and hot glue) •3D printed prototype (works-like) •Industrial Design model (looks-like) •Design for manufacture (for Tool Start) •Injection Molded with drafts, rounds, minimal undercuts •Die Cast •Stamped •CNC •Final Product Design in Manufacturing
  26. 26. Questions?
  27. 27. Agenda @dragoninnovate http://www.slideshare.net/dragoninnovation dragoninnovation.com

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