Startups

Here’s What 5 Successful Entrepreneurs Said About Their Early Crowdfunding Days

  • 5 min Read
  • October 23, 2019

Author

Escalon

Table of Contents

If you’re raising money for your startup via one of the crowdfunding platforms, you can sometimes feel like you’ll never hit your goal. But you can take inspiration from five founders who got their start by crowdfunding. Here are some of their pearls of wisdom that can help drive your success.

1. Palmer Luckey: Oculus Rift



Oculus Rift was acquired by Facebook for $2 billion in 2014, but the firm may not have experienced such a successful exit if it hadn’t raised money via Kickstarter. Founder Palmer Luckey originally posted his project on Kickstarter in 2012 and far exceeded the $250,000 funding goal, ultimately raising over $2.4 million on the platform.

But the funding was only one piece of the puzzle, Luckey found – in actuality, crowdfunding didn’t solve all of the issues that his startup faced, and only got him ready to prepare for an even more challenging part of entrepreneurship.

“Launching pre-orders is relatively easy compared to shipping a product,” Luckey told the Redwood Falls Gazette in 2016. “So it’s not like ‘What a weight off your shoulders!’, when in reality, taking pre-orders is the point where you are finally making an actual, solid commitment to when you’re going to ship, and how much you’re going to ship for, and you can’t stumble between when you do that and when you’re supposed to ship. It’s actually not a weight off of my shoulders at all.”

2. Andrew Thomas: SkyBell



When Andrew Thomas initially decided to raise money for his IoT video doorbell firm SkyBell, he turned to Indiegogo and ended up raising over $600,000. Enough investors were interested in answering their doorbells from their smartphones that they flocked to the product and buzz began to spread, with journalists clamoring to review the products in well-known magazines and websites.

Thomas believes that the free PR was a huge benefit of using crowdfunding to bring in cash for his business, but not the only benefit.

“Crowdfunding is incredibly important because you can raise the money you need without giving up any equity in the company, unlike if you were to raise a seed round of investment from an outside investor,” he told Forbes. “Crowdfunding is both a funding vehicle and a go-to-market. The ability to do both of those things makes it a very powerful option for any founder.”

3. Max Temkin: Cards Against Humanity



If you’ve ever played Cards Against Humanity, you can testify to the creativity that the game relies upon for its booming success. But just a decade ago, the game was just a thought in the minds of eight friends, who decided to use Kickstarter to bring their game to fruition. In 2010, the group launched their crowdfunding campaign, seeking $4,000 over a two-month period, and ended up raising over $15,000.

During its campaign, the company asked for frequent reviews from those who received the product and made improvements along the way to ensure that it was market-ready by the time it was done fundraising, said co-founder Max Temkin.

Temkin offers the following advice for startups that are aiming to make their marks on the crowdfunding platform. “Be as audacious as possible and make it as excellent as possible,” he told Kickstarter during a case study about his business. “Make it the best possible version it can be … People want you to succeed, they’ll believe in your belief.”

4. Jack Pochop: The Floating Record Vertical Turntable



The vinyl record trend shows no signs of slowing, and you might think no new innovations can come out of the category. But The Floating Record Vertical Turntable proved that theory wrong, raising more than $1.5 million on Kickstarter in 2015.

Not only did the campaign bring awareness to the product at the time, but it spurred ongoing interest in the item and helped its staffers make retail connections so it could get into stores like West Elm, said Marketing Director Jack Pochop.

“You would think that you get your 15 minutes and it’s over,” Pochop told the Chicago Tribune. “But it never fails to surprise me how many other outlets I haven’t heard of that reach out to us even two years later to profile it for Christmas or something like that.”

5. Jake Kassan: MVMT



Trendy watch brand MVMT sold to Movado for $300 million last year, marking a stunning exit for its two founders, who were still in their twenties. But back when the company started, it was actually rejected by Kickstarter – not once, but twice. So in 2013, its founders posted the project on Indiegogo, seeking $15,000. The firm far surpassed that goal, bringing in over $219,000 in less than two months.

Co-founder Jake Kassan says the company found that Indigogo had nuances that he hadn’t expected, having been more familiar with Kickstarter’s structure at the time. Future entrepreneurs should be aware of the differences.

“On Kickstarter, you make the most of your money in the first few days, but on Indiegogo, you actually make the most at the end of your campaign, so go for longer campaigns and extend if possible,” he told Yotpo.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Leadership & Growth

Implementing Lean Management Principles in SMBs

“Lean management” might conjure images of big manufacturing plants fine-tuning assembly lines, but the principles of lean are highly relevant...

Read More
People Management & HR

Developing a Competitive Compensation Strategy for SMBs

For small and medium-sized businesses, a competitive compensation strategy is key to attracting and retaining the talent needed to grow...

Read More
Accounting & Finance

The Role of Financial Reporting in Small Business Growth

Financial reporting often appears to be a routine exercise, but for small businesses, it can be the difference between reactive...

Read More
Accounting & Finance

The Impact of Accurate Financial Operations on Business Success

Financial operations encompass the systems and processes that govern every monetary aspect of a business—from managing payables and receivables to...

Read More
People Management & HR

The Benefits of Outsourcing Payroll for Small Businesses 

For many small business owners, running payroll is a time-intensive chore that requires meticulous calculation, familiarity with tax codes, and...

Read More
Accounting

Introducing C3: Your All-in-One Financial Management Platform

Managing your business’s finances can often feel like juggling too many tasks at once, especially when you’re trying to keep...

Read More
Accounting & Finance

Tax Planning Strategies to Maximize Small Business Savings

Small business owners often grapple with tax obligations that can swallow a large portion of their profits if not managed...

Read More
People Management & HR

Streamlining HR Processes, Best Practices for Small Business Owners 

Human Resources (HR) might feel like an afterthought for many small business owners juggling day-to-day demands, yet it has a...

Read More
People Management & HR

Leveraging AI for Efficient People Operations

Artificial intelligence (AI) isn’t just for tech giants anymore—it’s increasingly accessible to small and mid-sized businesses seeking a competitive edge...

Read More