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5 questions to ask yourself before crowdfunding

Crowdfunding is not magical, successful campaigns are the result of a long and thorough preparation.The aim of the presentation is to give 5 tips to hardware entrepreneurs before launching their crowdfunding campaign.

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5 questions to ask yourself before crowdfunding

  1. 1. questions to ask yourself before crowdfunding5
  2. 2. alexis HOUSSOU @a_houssou
  3. 3. #1. why?
  4. 4. crowdfunding preorders preorders vc funding validate product market fit validate pricing build a community finance 1st batch preorders preorders product launch
  5. 5. #2. are you ready to launch?
  6. 6. 3first days = 28% total funding average among $500k + funded projects.
  7. 7. pre-campaign formula OK ready to launch means… =  
  8. 8. email sign-ups conversion rate pre-campaign formula: funding goal≥   ×   ×   average pledge
  9. 9. target = $500,000 xxxx? email sign-ups ex:
  10. 10. target = $500,000 1st 3 days = $150,000 xxxx? email sign-ups ex:
  11. 11. target = $500,000 1st 3 days = $150,000 day 1 = goal = $50,000 xxxx? email sign-ups ex:
  12. 12. target = $500,000 1st 3 days = $150,000 day 1 = goal = $50,000 $100 average pledge xxxx? email sign-ups ex:
  13. 13. 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:
  14. 14. 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:
  15. 15. 5,000 emails 10% conversion ex: $50,000 goal ≥   ×   ×   $100 pledge
  16. 16. #3. manufacturable prototype?
  17. 17. 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
  18. 18. average expected time between kickstarter and shipping 4months.
  19. 19. average actual time between kickstarter and shipping 10+months.
  20. 20. manufacturable ≠ working prototype
  21. 21. manufacturable = factory validated = precise bill of materials (=) (you know your costs)
  22. 22. #4. which platform?
  23. 23. 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
  24. 24. 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?
  25. 25. 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 - ✚
  26. 26. 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?
  27. 27. #5. what if you fail?
  28. 28. december 2013 august 2014
  29. 29. why?
  30. 30. december 2013 august 2014 goal too high = $125,000 corrected goal = $50,000 never reached reached in 48h
  31. 31. set a low goal that you can reach quickly. ✔  
  32. 32. december 2013 august 2014 campaign= december 13 delivery = august 14 campaign= august 14 delivery = february 15
  33. 33. 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) ✔  
  34. 34. want to learn more ? register to our online course
  35. 35. brought to you by follow @elephantsandv follow @hardware_club x

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Crowdfunding is not magical, successful campaigns are the result of a long and thorough preparation.The aim of the presentation is to give 5 tips to hardware entrepreneurs before launching their crowdfunding campaign.

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