Crowdfunding Case Study:Goji Smart Lock

gojiMatthew Modawell – Nov. 15, 2013 – The Goji Smart Lock brings modern technology to the everyday deadbolt lock. It allows you to grant access to your home—even when you aren’t there—and provides real-time photo alerts of visitors, all via your smartphone. For instance, you could unlock your door so the neighbor kid could walk your dog and lock the door again when he finishes—all while you’re relaxing on the beach.

However, Goji ran into the problem most product start-ups encounter: insufficient capital to fund production. Unfortunately, Goji was not successfulin going straight to angel investors and venture capital firms. Potential investors (including venture capitalists) expressed concern for limited“proof of concept” and encouraged Goji to utilize a reward-based crowdfunding portal.

After being rejected by Kickstarter, Goji created a campaign through Indiegogo with a threshold of $120,000. In spite oflittle marketing effort, Goji was able to raise $313,457 of preorder sales—slightly in excess of the target. After the campaign, Goji was almost immediately approached by investors (like venture capitalists and angels). CEO and founder Gabriel Bestard Ribas explained, “I never picked up the phone to make a call for more investors. Ever since crowdfunding, everyone started to call me.”

Goji now has now signed with iControl[1], Control4[2], Savant Systems[3], The Home Depot[4], and Verizon Wireless[5].  It is also in the process of creating an agreement with Wal-Mart.

The success hasn’t been without hiccups, though. Gabriel had to turn down Amazon.com when it called because it wanted to fix his price. Another problem arose when signing with big-name distributors because they were not able to insure their product.To date, there still is no production capacity of the Goji Smart Lock.

On a more positive note, Goji will sign with a super-angel investor in the coming weeks. Also, Fundable, an equity based crowdfunding portal, approached Goji, and Gabriel says he has agreed to run a campaign in the near future with them.

Goji’s success just goes to show that crowdfunding can actually open the doorway to additional investment opportunities and success.

 

 

Matthew Modawell



[1] Service provider for firms like Comcast and ADT Security Solutions

[2] Leading provider of personalized automation and home-control solutions

[3] Developer and manufacturer of software and hardware solutions for residential and commercial automation

[4] Largest home-improvement retailer in the United States

[5] Largest mobile network operator in the United States

 

HEADLINE NEWS

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

ThinkAdvisorNASAA Warns of Marijuana-Related Crowdfunding ScamsThinkAdvisorThe North American Securities Administrators Association warned investors Monday to be wary of marijuana-related crowdfunding ventures and other risky or potentially fraudulent schemes that could swindle them o [...]

ForbesThe Celebrity Who Loves Crowdfunding: Lala Anthony Hosts New Series Featuring Female EntrepreneursForbesIt's been proven that funders clicking through projects on crowdfunding sites seem to prefer early-stage, female-led ventures, and one celebrity is looking to highlight t [...]

Positive.NewsCrowdfunding flower power in WalesPositive.NewsResidents in north Wales decided to act to help a local patch of land flourish. They hope their successful crowdfunding campaign will help them continue restoring this “beautiful meadow”. Locals launched the Gweld y ddôl – Se [...]

The Drinks BusinessBrewdog raises over £26 million from donors in 5th crowdfunding roundThe Drinks BusinessThe company secured £26.2 million from around 50,000 investors in its fifth crowdfunding campaign, bringing its total number of investors close to 94,000. The campaign — which th [...]

Q13 FOXCrowdfunding a castle in FranceQ13 FOXEver dreamed of owning a fairy-tale castle in the French countryside? Now you can — and it'll set you back a mere $58. A crowdfunding project to restore the medieval French chateau of Ebaupinay, in the Deux-Sevres region of western Fra [...]

TechCrunchOn-demand pharmacy startup NowRx raises $7 million Series A round through crowdfundingTechCrunchNowRx, an on-demand pharmacy solution of sorts, just closed a $7 million Series A round via the SeedInvest crowdfunding platform. The company had previously raised a $3 million se [...]

Kerala to launch crowdfunding platformThe New Indian ExpressTHIRUVANANTHAPURAM: The state government's crowdfunding initiative to rebuild the flood-ravaged state will begin on Tuesday. The implementation of various rebuilding project will be entrusted with credible agencies, appr [...]

India TodayKerala CM launches online crowdfunding platform to rebuild stateIndia TodayKerala Chief Minister Pinarayi Vijayan on Tuesday (October 16) launched an online platform, seeking the support of people from across the world in rebuilding the state from ruins of the August mega f [...]

American Thinker (blog)Hey, lefties! Remember all that crowdfunding cash you paid to Stormy Daniels?American Thinker (blog)The satisfying conclusion to the rest of us just goes to show that crowdfunding can be more than bribery; it can actually backfire. That seems to be what's h [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |