Crowdfunding has emerged as the business financing option of choice for modern businesses that have struggled to find traditional funding options. There are few inherent advantages of crowdfunding. It is a fast and growth and awareness oriented method of raising capital and it has helped scores of businesses in getting out there in front of customers and scaling new heights of success. With various crowdfunding platforms available, entrepreneurs can choose the one that best suits their business vision.
If you’re a business owner looking at crowdfunding or social funding as a financing option for your business, there are several crowdfunding success stories that can guide, motivate, and inspire you. Many of these crowdfunding campaigns not only met their targets but they exceeded their financing goals by millions of dollars. Here are some of the crowdfunding examples of success stories in recent years.
1) Pebble Time: Funded via Kickstarter, Pebble Time was the third generation version of the successful Pebble watch. The campaign target was $500k and it reached $20,338,986 with the donations from backers. To date, three out of four biggest sums raised via crowdfunding are by Pebble. Pebble was recently acquired by the fitness band company FitBit.
2) Oculus Rift: The head mounted video gaming display aimed at a target of $250K and their Kickstarter campaign ended with a backing of $2,437,429. Oculus Rift creates a 3D virtual environment around the user that the user can manipulate with the control given with the 3D headset. The company was later bought by Facebook in March 2014 for $2 billion.
3) Veronica Mars Movie: Crowdfunding is not just for gadgets, the Veronica Mars movie is a great example. The campaign raised nearly $5 million from more than 100,000 fans. Based on the adventures of a teenage detective, the movie met its goal of raising $2 million in less than eleven hours. The movie was released in March 2014 and met great success.
4) Coolest Cooler: Gadgets that solve problems always find success at crowdfunding sites. The portable cooler has multitude of features.Waterproof Bluetooth speaker, rechargeable battery powered blender, USB charger, cutting board were an instant hit with backers. The campaign had a target of $50K and it ended up raising $13,285,226 making it the most funded campaign of 2014.
5) The Scanadu Scout: The Scanadu Scout is a healthcare device that measures body’s vital signs and sends them to a smartphone app. This product aimed at a target funding of $100K and it finally received a backing of $1,664,375. The company announced in 2015 that they had raised $49.7 million in total funding with $35 million in new funding.
Crowdfunding is a progressive, and effective way to raise money. It can create a buzz for your product or service at the same time alongside raising capital.