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

misterb&b hits the equity crowdfunding trail to expand into hotels  TechCrunchHomosexuality is illegal in a third of the counties on this planet; in eight countries it is punishable by death. In the febrile atmosphere of today's politics, ... [...]

Wilmington-based Bloom launches crowdfunding campaign  Greater Wilmington Business JournalWilmington-based Bloom Inc. is the first company in Wilmington and second in the state to use the NC PACES Act to launch a North Carolina public offering. [...]

NatWest launches female-focused crowdfunding programme  ComputerWeekly.comConsumer bank NatWest is backing female entrepreneurs through a crowdfunding programme. [...]

Finnish crowdfunding firm Invesdor buys Austrian peer, seeks M&A  ReutersHELSINKI (Reuters) - Helsinki-headquartered Invesdor has agreed to buy Austrian peer Finnest in an all-share deal, hoping the acquisition will spark further ... [...]

Kickstarter Versus 'Crypto' ICOs: Are Traditional Platforms Having The Last Laugh?  ForbesThe crowdfunding world - traditional or more blockchain/crypto-related - might be getting a little more crowded of late. As a financing vehicle it has been around ... [...]

CEO and co-founder of crowdfunding giant Kickstarter resigns amid staff unionization effort  Torrington Register CitizenKickstarter co-founder Perry Chen announced Monday that he is stepping down as CEO of the crowdfunding platform, but will stay on as chairman of the board. [...]

The Changing Face of Video Game Crowdfunding  VarietyMuch has changed since 2012, when Double Fine cracked open video game crowdfunding with more than $3.3 million raised. [...]

Crowdfunding deadline for community kitchen nears  The Daily TelegramADRIAN — The organizers of a community makerspace kitchen project have raised $35000 toward the $50000 goal of receiving matching funds from the ... [...]

Great Idea But No Capital? How To Launch A Business Through Crowdfunding  ForbesNoëlle Santos launched a viral crowdfunding campaign to open The Lit. Bar, a wine bar/bookstore in the Bronx. She shares her advice for crowdfunding a ... [...]

Frank Lloyd Wright Unity Temple model kit seeks crowdfunding  Curbed ChicagoLovers of all things Frank Lloyd Wright may soon have a chance to assemble their own scale model of the famous architect's iconic Unity Temple in Oak Park, ... [...]

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 |