The public fund-raising site is a fun tool is not suitable for the initial venture investment?

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Kickstarter, Indiegogo are currently well-known public fund-raising site (crowdfunding), users see interesting business ideas, can directly provide a small sum of money to support the idea of sponsors, very American Dream (Anglo Dream) taste, It is a very different method of rapid fundraising with traditional venture capital or angel funds. However, the Kickstarter model does not fully apply to every new venture, for the following reasons:

1. Unable to provide a separate product, it is not suitable to participate in public fund-raising

The most suitable product to hold fundraising activities in Kickstarter must be the eventual production of an entity product that can be delivered to the buyer, such as the Intelligent Watch Pebble, which raises billions of dollars in records. If the provision of enterprises with products or services, the public fund-raising model may not be suitable for you, must be considered can not be like consumer products can arouse public interest, and then decide to pay for support, it is best to put the effort to persuade venture more practical.

2. Do not think clearly about the way business operation, it is not suitable for participation in public fund-raising

If you haven't thought clearly about the process of packaging, shipping, and follow-up, it's best not to try to put on the Kickstarter platform for Change, and the complex process of business operations can eventually lead to failure. To desktop jellyfish tank This product example, the provision of a set of jellyfish equipment, at home can enjoy the fun of jellyfish, immediately aroused the interest of the people, fund-raising amount of more than the default threshold of 54 times times, in terms of financing is a fairly successful innovation idea, the result is full of negative evaluation, First development production time delay, but no response on the Internet, after the shipment of jellyfish in two weeks after death, dissatisfied buyers have to return online message. No matter what kind of product, please remember before fundraising: you are really able to implement and deliver this product.

3. Your product prototype is not available, it is not suitable to participate in public fund-raising

People will choose investment has been proven to be a viable product, generally speaking, users are willing to give the final product changes in the elastic space, but must be made out of the product. The iphone's perimeter is equipped with i+case is a failure example, this is a design-filled aluminum-magnesium alloy frame, unexpectedly the result is installed after incredibly let the iphone no signal, let the money users quite dissatisfied.

4. Inability to provide services within the promised time is not suitable for participation in public fund-raising

The new company is full of challenges, want to board the fund-raising site, you must fill in the final delivery of the product time, if you do not, do not come here for change. When you plan to press the "Project start" button, think about whether you can manage your customer needs, if your resources are not enough, you may be able to outsource to trusted friends and relatives to help.

5. Can not be loaded to raise capital explosion, it is not suitable for participation in the public fund-raising

One last reason to consider is Kickstarter web site allows unlimited investment, if your product is attractive enough, it is likely to invest in the explosion, although it is a good publicity method, but not necessarily sell more can earn more; Before the project on line, please confirm that your products can be produced in large scale.

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