Platforms like Kickstarter and Indiegogo have not only widened access to funding to companies that might otherwise struggle in the capital markets, but they have also transformed the way companies connect with consumers during product development, turning focus groups into final Replaced with actual customers who have a stake in the product. Despite the many benefits of crowdfunding, many campaigns still fail. To understand why, the author undertook an empirical analysis of his 18,173 campaigns for physical products in his Kickstarter technology and design category. They argue that many companies often present initial products that are so fully developed that customers do not feel that their input materially changes the product and are reluctant to contribute as a result. I discovered that it is true.
Crowdfunding mobilizes $1.3 billion in annual innovation funding And that amount is expected to more than double over the next five years. Platforms like Kickstarter and Indiegogo have not only expanded access to financing for companies that might otherwise struggle in the capital markets, but they have also transformed the way companies connect with consumers during product development, turning focus groups into final Replaced with actual customers who have a stake in the product. .