Successes and Failures of Crowdfunding
Is it for everyone?
You can crowdfund anything: disaster relief, citizen journalism, startup company funding, movie making, research, and products.
Successes
Kickstarter and Indiegogo are the 2 of the most prominent crowdfunding platforms:
Top 3 Most Funded Kickstarter Projects:
Pebble
What is it? E-Paper Customizable Watch
Features:
Time
Phone Notifications (Texts, Reminders, Emails, etc.)
Applications (Use as a smartphone remote, a smartwatch for running, a cycling computer, golf rangerfinder)
How much did it raise?
$10,266,845
10,266% funded
Ouya
What is it? Video Game Console powered by Andriod
Features:
Allows any developer to build games for Ouya to play on TV
Applications (Video, Radio, Movie Streaming)
A controller with a touch pad
How much did it raise?
$8,596,474
905% funded
The Veronica Mars Movie Project
What is it? A movie based on the Veronica Mars TV series
Features:
People finally get a Veronica Mars Movie
Rewards for people who donated $10+
Movie will premier in early 2014
How much did it raise?
$5,702,153
285%
“Feel Good” Crowdfunding:
Karen the bullied bus monitor
What is it? A video of a 68 year old bus monitor being harassed to by middle schoolers went viral
Features:
Indiegogo campaign to send her on the vacation of a lifetime
How much did it raise?
$703,168
14,063%
Goofy Crowdfunding
Operation BearLove Good, Cancer Bad
What is it? The Oatmeal counter to Funnyjunk Defamation Lawsuit
Features:
The Oatmeal was sued for $20,000 for a blog post stating funnyjunk was using uncredited comics from The Oatmeal to generate revenue.
The Oatmeal took this course of action:
Try and raise $20,000 in donations.
Take a photo of the raised money.
Mail funnyjunk the photo
Take the money and donate one half to the National Wildlife Federation and the other half to the American Cancer Society
How much did it raise?
$220,024
1,100%
Failures
3 Accused Crowdfunding Scams:
1. Mythic: The Story of Gods and Men
What is it? A video game
What made it a scam:
All artwork for game was stolen
Claimed to be a team of designers with experience at Blizzard and Activision
Was actually an office aid
Outcome:
Raised $4,739 before it was suspended
No backers lost money
2. ZionEyes
What is it? Pair of glasses with built in mic and camera that can stream video and audio to web
What made it a scam:
Too ambitious
3 years later the product had not been made
Backers have received nothing for the money given
Outcome:
Raised $343,415
Backers lost 100% of money
3. Kobe Red
What is it? 100% JAPANESE BEER FED KOBE BEEF JERKY
What made it a scam:
Red flags prompted private investigations of this Kickstarter
Fake testimonials
No list of creators names
All stock images used
It was never proven that it was a scam from the start, but likely
Kickstarter shut it down hour before fundraising ended
Outcome:
Raised $120,309 before it was suspended
No backers lost money
Copy/Paste:
What is it? Lazy Scamming
What made it a scam:
Scammers copy and paste a crowfunding project
Steal from one platform (Kickstarter)
Post on Indiegogo
Outcome:
None have successfully raised money so far
They are generally found quickly by original owners
So close but so far away
DreamQuest Games “Alpha Colony”
What happened? Bad luck
Kickstarter came up $28 short of goal
Therefore project fails and they get no money
Outcome:
Raised $49,972, failed
Backers were refunded money
Sources:
http://www.kickstarter.com/
http://www.kickstarter.com/
http://www.kickstarter.com/
http://www.indiegogo.com/