Crowdfunding Your Invention II
Mark Nowotarski (Patent Agent)
203 975 7678
Crowdfunding• Make a prototype: Make a video: File a patent
application.• Post on internet with pricing, funding goal, and
funding deadline (e.g. 30 – 60 days).
• Promote it: Promote it: Promote it!!!!!• Take committed orders guaranteed by credit card.• If you meet your funding goal, everyone gets
charged, you get $, you make and deliver the product.
• If you don’t meet your funding goal:• You get your $ anyway (IndieGoGo)• You get nothing (Kickstarter)
Three classes related to inventions
Mechanical Design Electrical Technology Games
Name
Video
Description
Progress& Goal
Project Creator
Awards
Example: Flote
AwardsToken
Product
Special honor
$1
$10,000
No debt (e.g. interest)No equity (e.g. stock)……yet
What Does it Take to be Successful?• Good awards• Sell what people are buying• Emulate other successful projects
• Media coverage• Enthusiast sites– Gizmodo/Techcrunch /IGD • Social Network – Kickstarter itself• Reputation of people associated with project
• Planning & Preparation – perhaps for a year• Business plan – Plan on cost overruns and delays!• Prototype made, production facilities lined up• Video
• Communication with backers• Especially when things go bad
Sell what people are buyingOriginal success
Pen type A - $280,000August 2011
Minimal metal pen for Hi Tec C cartridge
Emulating Success
Ti2 pen - $77,000June 2012
Render K - $69,000Jan 2012
phx-pen - $69,000Apr 2012
Ti pen - $220,000Aug 2012
Pen proj.- $46,000Aug 2012
[md] pen $6,000Aug 2012
Minimal metal pens for Hi Tec C cartridge
Media Coverage – Enthusiast SitesDetails announced one week before launch•engadget.com•ign.com•reddit.com•kotaku.com•etc, etc, etc.
HeadlineA $99 hackable Android game
console designed by Yves Behar
How did you hear about Ouya?“I first saw this on Engadget.”
“I saw a story on IGN and I jumped in right away.”
“I heard about Ouya from reddit (/r/gaming)”
“Most would have seen the Kotaku story and followed it here.... Like
me.”and
“I look at Kickstarter almost daily “
“browsing the most popular kickstarters “
Planning and Preparation &Communication with Backers
Funded May 2011No product deliveredBackers outragedCurrently being suedLast update Nov 2011
Funded Sept 2010No product deliveredSome backers angrySome backers supportiveLast update July 2012
• Crowdfunding is growing.• People are learning how to make it work.• Awards: Sell what people are buying• Media: Enthusiast sites• Planning: Expect cost overruns• Communication: Never stop
Looking Ahead
Next year – Equity Crowdfunding! (courtesy of the JOBS Act)
Epilogue
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