The competitive crowdfunding scene can look very challenging for the campaign managers, especially the ones who lack experience and are relatively new to the whole concept of raising money from the crowd.
The campaigners need a leg up in order to feel confident enough entering the exciting world of crowdfunding. Getting insights from the pros and looking at the successful practices gives a unique advantage to the entrepreneurs, who want to kick start their business ideas through crowdfunding.
Reward-based crowdfunding platforms like Arikovani have become an important part of the entrepreneurial ecosystem on local and global levels. As the campaigns, run on Arikovani, bring much more than funding to the table, but also help the entrepreneurs with marketing, branding and especially product development, it is understandable why the startups keep coming back with other, fresh ideas.
Raising enough cash to launch the business is not the end of the effort. Actually, it is the very beginning of the business venture. Starting it right and making it right in the long run is not a piece of cake. It is a sign of hard work and abilities of successful business-minded people. Here are the stories of 3 companies that started with crowdfunding and achieved tremendous success.
Success two times around: The multi-million dollar iPhone case company
The first product that Rod Ward and Chris Peters presented on Kickstarter was the beginning of what is now a multi-million dollar company. Opena, the iPhone bottle opener case, had the initial goal of $15,000, but raised $28,303 from 578 backers, including Ashton Kutcher and Jamie Oliver. After this success, it was just a matter of time for the founders to launch a second crowdfunding campaign. Quad Lock, the iPhone case mounting system, was backed by 666 supporters and pledged $41,209, when the initial goal was $20,000.
These two successful campaigns laid the foundations of a very successful business, which continues to grow as now the founders continue to work hard. Now the business is flourishing as the company is shipping their products all over the world through their ecommerce store Annex Products!
Investment after crowdfunding success: The better socks for the better world
The success story of Bombas, the socks company that donates a pair of socks every time a pair is sold, proves the idea that companies, who have successfully raised money through crowdfunding, have better chance to receive an investment from VCs or angel investors in a later stage. When back in 2013, Randy Goldberg and David Heath launched their idea on Indiegogo, they asked for $15,000. But the campaign kicked off quickly, and the outcome was extremely impressive – Bombas raised $142,488 from 2751 backers!
After the crowdfunding success, the things were going pretty well for the company. In order to keep the growth, the founders took one step ahead and had the chance to appear on the popular show Shark Tank in September 2014, where they pitched the investors and hoped to raise $200,000 in return of 5% stake in their company. They managed to make a deal with Daymond John for $200,000 in exchange for 17.5% of the company. Later Daymond have admitted that this investment is one of the best deals he has ever made on the show. Now Bombas is a well-recognized company with a great product and potential to grow!
Crowdfunding and the power of branding: The new kind of wallet
Disrupting the wallet industry may seem as something impossible to be done by many, but after raising $317,424 from 7,521 backers, TGT wallets proved that statement to be wrong by becoming the most popular and successful wallet project in the history of the Kickstarter platform. Now a successful business, the TGT’s Kickstarter experience proves the power of crowdfunding when it comes to building a recognizable brand. Crowdfunding is not just about the cash – it is also about raising brand awareness and building a loyal network of customers, which make the solid foundation of every business with great potential.