Recently, one of the fastest and most overfunded crowdfunding efforts in history got booted off of Kickstarter after having amassed over $4,000,000 in pledges from over 20,000 backers. They were kicked to the curb after critics and Kickstarter decided they didn’t have an adequate prototype, just days before the campaign was set to end. Their initial goal was to raise $160,000. Kickstarter makes a cut of the funding total of successful campaigns, and that cut would have around $200,000 on this campaign, had it not been suspended.
Some people blame “activist Reddit users”, some blame the “powerful shaving lobby,” some blame the project creators for not having a better prototype and some blame Kickstarter for suspending the campaign so late in the game. The creators quickly switched platforms to Indiegogo and the campaign raised the $160,000 goal in under 15 hours. They ended up raising only 10% of what originally had been planned on Kickstarter before that campaign was suspended.
Laser Razor (on Indiegogo) $412,258 raised /// by 2,455 people /// 230% funded /// Ended, Sun. Oct 25th
What does this mean for the crowdfunding platforms and for the campaign creators that fuel them? For our campaign set to launch in November, it has caused a little anxiety over which platform to pick. Who wants to successfully jump through all the hoops to get on Kickstarter in the first place, then raise millions of dollars for their project on a computer screen, then get the plug pulled from your campaign before that funding becomes real?
We are looking to shake up the crowdfunding world with a unique approach to the sustainability and tiny house movements. From creating shipping container home kits, shipping container aquaponics greenhouse kits and a backyard aquaponics kit. One thing that is largely different about our campaign that the top two backer levels are $29,500 and $55,000. By comparison, the top backer level of the Skarp Laser Razor was around $450, for 4 of their razors. Very few campaigns are asking their top backers to dig deep and fork over tens of thousands of dollars. Then again, not every campaign has an intention to, “transform the practical sustainability of two of the most important elements required for human survival; food & shelter.”
A $10,000 Challenge
While trying to make our decision about using Kickstarter or Indiegogo, we learned something new. Kickstarter has a rule that only allows perks up to $10,000. Which means the ticket price of our product excludes us from being on their platform at all. So that made the decision for us.
As crowdfunding grows more and more common, it stands to reason that big ticket items will grow in popularity on crowdfunding platforms, especially because backers can enjoy huge price savings when getting in at the beginning of a product launch. Indiegogo is ahead of the curve in this regard and will allow contributions up to $50,000 from a debit card. We are excited to be utilizing such a forward-thinking crowdfunding platform!
Be #Prepared. Get #Sustainable FAST! Sign up to the right to get notified about our campaign as we launch.