Crowdfunding Your Invention II
Mark Nowotarski (Patent Agent)
www.marketsandpatents.com
[email protected]
203 975 7678
Crowdfunding
• Make a prototype: Make a video: File a patent
application.
• Post on internet with pricing, funding goal, and
funding deadline (e.g. 30 – 60 days).
Promote it!!!!!
• Promote it: Promote it:
• Take committed orders guaranteed by credit card.
• If you meet your funding goal, everyone gets
charged, you get $, you make and deliver the
product.
• If you don’t meet your funding goal:
• You get your $ anyway (IndieGoGo)
• You get nothing
(Kickstarter)
Three classes related to inventions
Mechanical Design
Electrical Technology
Games
Example: Flote
Name
Progress
& Goal
Video
Project
Creator
Description
Awards
Awards
Token
$1
Product
Special honor
$10,000
No debt (e.g. interest)
No equity (e.g. stock)……yet
What Does it Take to be Successful?
• Good awards
• Sell what people are buying
• Emulate other successful projects
• Media coverage
• Enthusiast sites– Gizmodo/Techcrunch /IGD
• Social Network – Kickstarter itself
• Reputation of people associated with project
• Planning & Preparation – perhaps for a year
• Business plan – Plan on cost overruns and delays!
• Prototype made, production facilities lined up
• Video
• Communication with backers
• Especially when things go bad
Sell what people are buying
Original success
Pen type A - $280,000
August 2011
Minimal metal pen for Hi Tec C cartridge
Emulating Success
Render K - $69,000
Jan 2012
phx-pen - $69,000
Apr 2012
Ti2 pen - $77,000
June 2012
[md] pen $6,000
Aug 2012
Pen proj.- $46,000
Aug 2012
Ti pen - $220,000
Aug 2012
Minimal metal pens for Hi Tec C cartridge
Media Coverage – Enthusiast Sites
Details announced
one week before launch
•engadget.com
•ign.com
•reddit.com
•kotaku.com
•etc, etc, etc.
Headline
A $99 hackable Android game
console designed by Yves Behar
How did you hear about Ouya?
“I first saw this on Engadget.”
“I saw a story on IGN and I jumped in
right away.”
“I heard about Ouya from reddit
(/r/gaming)”
“Most would have seen the Kotaku
story and followed it here.... Like me.”
and
“I look at Kickstarter almost daily “
“browsing the most popular
kickstarters “
Planning and Preparation &
Communication with Backers
Funded Sept 2010
No product delivered
Some backers angry
Some backers supportive
Last update July 2012
Funded May 2011
No product delivered
Backers outraged
Currently being sued
Last update Nov 2011
Looking Ahead
• Crowdfunding is growing.
• People are learning how to make it work.
• Awards: Sell what people are buying
• Media: Enthusiast sites
• Planning: Expect cost overruns
• Communication: Never stop
Epilogue
Next year – Equity Crowdfunding!
(courtesy of the JOBS Act)