In recent years, technological projects developed using crowdfunding have increased significantly. This present paper studies how these projects deal with the supply chain, due to the specific requirements of the components, special nature of the companies supporting the project and how they deliver to the final customer.. The supply chain management contributes to the success of these projects, especially considering the high impact new technologies have. Hence, crowdfunding’s supply chain is analyzed and factors of success are identified, together with a comprehensive detail of new areas to research in this novel topic.

1. How to implement models of Supply Chain in
crowdfunding Technological projects
Marina Mattera (marina.mattera@uem.es) & Raquel Ureña (raquel.urena@uem.es)
Department of Economics and Finance
Universidad Europea, C/Tajo, s/n.
28670-Villaviciosa de Odon-(Madrid) Spain

2. How to implement models of Supply Chain in crowdfunding Technological
projects
TABLE OF CONTENTS
-INTRODUCTION
-REVIEW OF KEY CONCEPTS
- SC
- SCM
- Crowdfunding
-DIFFERENCES BETWEEN STANDARD SUPPLY
CHAIN AND CROWDFUNDED PROYECT SUPPLY
CHAIN
-COST AND SUCCESS FACTORS
-CONCLUSIONS
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015

3. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
INTRODUCTION

4. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
INTRODUCTION
crowdfunding
Backers, funders or
investors
stakeholders

5. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
KEY CONCEPTS
Supply Chain
SC

6. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
KEY CONCEPTS
Supply Chain
Management SC
The administration of
upstream and downstream
relationships with suppliers
and customers adding value
to the customer and the
source (Christopher, 1999)

7. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
KEY CONCEPTS Crowdfunding
Crowdfunding is a relatively
new form of financial source
for entrepreneurs or
companies seeking for funds
to carry out their projects,
obtaining such funding by
drawing small contributions
using internet platforms as
intermediaries (Mollick 2013)

8. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
KEY CONCEPTS Crowdfunding

9. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
KEY CONCEPTS Crowdfunding
$84,007,433
$20,338,986
$18,439,086
$13,285,226
$12,814,196

10. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
KEY CONCEPTS Crowdfunding

11. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
KEY CONCEPTS Crowdfunding
Crowdfunding financing models were
classified according to what backers
receive in exchange for providing funds.
● Reward based: Backers receive a
tangible item or service.
● Equity based: Backers receive a stake
in the company.
● Donation based: Usually used for
charities.
● Lending based: Backers are repaid.

12. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
DIFFERENCES BETWEEN STANDARD SC AND CROWDFUNDED SC
Tradicional SC model

13. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
DIFFERENCES BETWEEN STANDARD SC AND CROWDFUNDED SC
Crowdfunding SC model
 the lack of intermediation
 a minimum quantity of orders

14. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
DIFFERENCES BETWEEN STANDARD SC AND CROWDFUNDED SC
Crowdfunding SC model benefits
The entrepreneur tests the market and obtains
feedback from the prototype they show on their
campaign.
They ensure they will have a minimum number
of consumers prior to production.
Calculation of specific needs (raw material,
hardware, etc)
Reduces cost of stock

15. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
DIFFERENCES BETWEEN STANDARD SC AND CROWDFUNDED SC
Crowdfunding SC model disadvantages
Success that largely exceeds the original
expectations creates an issue as the
entrepreneur may not have the necessary
resources and capacities to meet such a large
demand
Entrepreneurs who failed to have an accurate
plan and schedule of activities to be carried out
in order to meet the demand they initially
calculated and set as a goal for their campaign.

16. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
COST AND SUCCESS FACTORS
All or nothing? Success fee Fail fee Time limit
Kickstarter Yes 5%+(3-5%) N 60 days
Indiegogo No 4% (+3-5 %) 9%(+3-5%) No
RocketHub No 4 (+4) 8 (+4) No
 Crowdfunding can be an interesting method to purchase technological
products.
 Individuals who are tech-advocates prefer to buy a unique product

17. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
COST AND SUCCESS FACTORS
 A realistic planning (viability)
 Use adequate media (social media) to reach potential customers

18. How to implement models of Supply Chain in crowdfunding Technological
projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
CONCLUSIONS
SCM models must be used in Crowdfunding to be succesful
Differences between SC and CSC must be considered.
Use realistic production plan and delivery
Addional cost to the inicial prototype must be considered.

19. How to implement models of Supply Chain in crowdfunding Technological
projects
Mattera, M. & Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
Technological categories in Kickstarter
16 Technology technology
341 Wearables technology/wearables
338 Robots technology/robots
52 Hardware technology/hardware
339 Sound technology/sound
334 DIY Electronics technology/diy electronics
337 Gadgets technology/gadgets
331 3D Printing technology/3d printing
335 Fabrication Tools technology/fabrication tools
336 Flight technology/flight
342 Web technology/web
332 Apps technology/apps
51 Software technology/software
35 Video Games games/videogames
272 Mobile Games games/mobile games
270 Gaming hardware games/gaming hardware
Data from Kickstarter

20. How to implement models of Supply Chain in crowdfunding Technological
projects
Mattera, M. & Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
Money rised by successful campaigns in Kickstarter (Global and technological)
in millions of USD
Data from Kickstarter

21. How to implement models of Supply Chain in crowdfunding Technological
projects
Mattera, M. & Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
Data from Kickstarter
Number of successful technological projects in kickstarter

22. How to implement models of Supply Chain in crowdfunding Technological
projects
Mattera, M. & Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
Data from Kickstarter
Money pledged by successful technological projects

23. How to implement models of Supply Chain in crowdfunding Technological
projects
Mattera, M. & Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
Data from Kickstarter
38%
23%
Global success rate Technology success rate
Technology success is much smaller than global success

24. How to implement models of Supply Chain in crowdfunding Technological
projects
Mattera, M. & Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
Data from Kickstarter
Different states of campaigns in Kickstarter
• Live – Campaign is still active
• Failed – The project failed to achieve it's funding goal
• Canceled – The creator of the campaign cancels the project.
• Suspended – Kickstarter cancels the campaign (They believe it to be a scam, product can't be
built, etc...)
• Successful – The campaign was successful.

25. How to implement models of Supply Chain in crowdfunding Technological
projects
Mattera, M. & Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
Data from Kickstarter
Failure of Technological products
Canceled Suspended
Tech 13,47% 0,48%
Platform 8,54% 0,21%
• Technology campaigns are twice as likely to be suspended (by the platform).
• Technology campaigns are almost twice as likely to be canceled (by the creator).

26. How to implement models of Supply Chain in crowdfunding Technological projects
Mattera, M. & Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
Data from Kickstarter
Campaign Pledged (USD) Backers Category
OUYA: A New Kind of Video Game Console 8.596.475 63.416 Gaming Hardware
Pono Music - Where Your Soul Rediscovers Music 6.225.355 18.220 Sound
Bring Reading Rainbow Back for Every Child, Everywhere! 5.408.917 105.857 Web
Torment: Tides of Numenera 4.188.927 74.405 Video Games
Project Eternity 3.986.929 73.986 Video Games
Mighty No. 9 3.845.171 67.226 Video Games
The Micro: The First Truly Consumer 3D Printer 3.401.361 11.855 3D Printing
Double Fine Adventure 3.336.372 87.142 Video Games
FORM 1: An affordable, professional 3D printer 2.945.885 2.068 Technology
Wasteland 2 2.933.252 61.290 Video Games
SCiO: Your Sixth Sense. A Pocket Molecular Sensor For All ! 2.762.572 12.958 Hardware
Homestuck Adventure Game 2.485.506 24.346 Video Games
Oculus Rift: Step Into the Game 2.437.430 9.522 Gaming Hardware
Sense: Know More. Sleep Better. 2.410.741 19.349 Technology
3Doodler: The World's First 3D Printing Pen 2.344.135 26.457 Hardware
ZANO - Autonomous. Intelligent. Swarming. Nano Drone. 2.335.120 12.075 Technology
HEX MMO Trading Card Game 2.278.255 17.765 Video Games
Camelot Unchained 2.232.933 14.873 Video Games
Planetary Annihilation - A Next Generation RTS 2.229.344 44.162 Video Games
Some of the most successful technological campaigns

27. How to implement models of Supply Chain in crowdfunding Technological projects
Dr M. Mattera & Prof R. Ureña, R. – Management and Business Academy, International Business Conference
July 3-5 London 2015
Data from Kickstarter
• Less success than other kind of products
• The incresase in cancellation rate suggests that creators change more their minds during the
funding campaign.
• The increase in suspension rate suggests that Kickstarter finds more campaigns to be
unreliable.
• It is not a problem of funding or number of backers. Numbers show that technological
products have more backers and pledge more money than non-technological products.
• Cancellation rate can be related to the difficulty of delivering the goods, that would be with
the production, the supplies and other elements of the supply chain.
• According to Mollick, products are usually delayed an average of 2,4 months. 75% of the
products are delivered late.
• This delays are directly related to the size and complexity of projects.