VC Funding or CrowdFunding?

By Rachel Vanier, Fred Potter, CEO of Netatmo, highlights the limits included in crowdfunding by pointing out first that there is a lot of buzz around Kickstarter, yet we don’t know how long it will last. According to him, if you sell a “B2G” device (Business to geeks) then Kickstarter is perfect. If you sell a product for the general product, Kickstarter is not fit. Pierre-Eric Leibovici also points out that crowdfunding might not be suited for B2B or industrial hardware products.

Art by Mike Lucas

Art by Mike Lucas

Besides, according to M. Potter, since R&D costs are going to grow, Kickstarter will certainly not be enough to fund them – especially since the campaign itself costs a huge amount of time and money in marketing. Finally, he points out one limit of crowdfunding: you can’t change the device once you raise money from a platform, because you made a promise to your customers. Speaking from his experience with Lima, Severin Marcombes tells us: “We changed our product because we raised a lot more than we aimed at. It’s not wrong to change as long as you keep the same promise.”

Barbara Belvisi insists: “Crowdfunding is not about funding, it’s about industrializing the pre-ordering process” and reminds the crowd that VC funding is needed to scale.

Raising money from VCs is easier after a crowdfunding campaign is easier since you can already prove you have customer attention and you are market fit. Yet some startups raised before pre-orders (Space Monkey, Occipital or Play-I for instance): they usually get team members that already have an exist in their career or built technologies protected by patents.

Fred Potter also reminds that a 3rd option would be to borrow money from the bank. At Netatmo, the strategy is to be profitable year on year, which implies they cannot develop as fast as they want but they can prove to banks that they are capable to reimburse their debts.

Read more on

http://www.rudebaguette.com/2014/06/18/fund-hardware-startup-crowdfunding-vs-vc-explained/

 

HEADLINE NEWS

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

ForbesHow This Millennial Built A 7-Figure Business Using Equity CrowdfundingForbesWhen he asked them to help fund his company's crowdfunding campaign, they delivered—exceeding his initial goal fourfold and ranking it one of the fastest and most successfully funded companies on R [...]

WJLAHomeFundMe: Crowdfunding for a down payment | WJLAWJLABOISE, Idaho (KBOI) - You've likely heard of GoFundMe, the crowdfunding website, but have you heard of HomeFundMe?It's a website aimed at raising money for the down payment on a home.There is no repayment! This is a t [...]

Final '68, crowdfunding campaign ends in just one weekPlanetmountainThe crowdfunding campaign for Final '68, the project that aims to document the exploratory phase of the Pietra del Finale between the years 1968 and 1975, will come to an end in seven days time. There are ju [...]

Digital News AsiaNewly licensed Singapore crowdfunding player kickstarts platformDigital News AsiaSINGAPORE start-up, FundTier, launched its crowdfunding platform officially after obtaining the Capital Market Services (CMS) licence in December 2017. Founded by five former bankers, Fun [...]

Crowdfunding site Beam provides job training for homeless 'in a dignified way'CTV NewsHe is among the first to benefit from a high-tech project to use the internet and crowdfunding to help the homeless. The founder is an entrepreneur by the name of Alex Stephany who created [...]

Oval Money surpasses £500000 crowdfunding target in 72 hoursFinextraOval Money's latest fundraising campaign was conducted on crowdfunding platform Crowdcube. The £500,000 target represented nine percent of the company's equity, but the overfunding is increasing the equity t [...]

Brewbound.comFull Circle Brewing Raises $800000 Via Equity Crowd FundingBrewbound.comFRESNO, Calif. – Full Circle Brewing Co., Fresno-based craft brewery, announces their progress of securing $800,000 of capital. They are more than three-fourths to their goal which is projected to inc [...]

Entrepreneur3 Crowdfunding Tips Every Company Forgets From a Brand That Raised $800000 and Got AcquiredEntrepreneurCrowdfunding takes a lot of planning, whether you're gearing up for a launch, a ship date or thinking about the next source of funding you'll pursue. But it [...]

Entrepreneur12 Key Strategies to a Successful Crowdfunding CampaignEntrepreneurI've Raised Close to $2 Million in Crowdfunding Campaigns -- Here Are My Secrets · Next Article. 12 Key Strategies to a Successful Crowdfunding Campaign. Image credit: Shutterstock · Aj Agrawal • Contr [...]

CFB Finance

Marketwired

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

Press Release

CrowdFund Beat Media

2018 Fintech World Conference & Workshop, Announcement:Game Changer” Fintech World Media, PR & Marketing Group Proudly Presents: lnkd.in/gqdCrTr

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 |