Thought crowdfunding was a bad way to make a start in business? These three massive firms are here to prove you wrong.
How many times have you heard the words “If I had the money…”? This phrase is used to make excuses for so many things. A lot of the time it is true, of course, but not when it comes to business.
Crowdfunding is a thoroughly modern approach to collecting the finance needed to start your business up. Every time you hear someone complaining that they would start X business, if only they had the money, you can now assure then that it is possible.
3 Big Businesses that were Crowdfunded to Success
When challenged, use these three businesses as examples of how crowdfunding is a great way to source some success.
1 – Sugru
While Sugru wasn’t technically a crowdfunding startup, they did make expansion plans back in 2010. Then ranked as one of the top 10 inventions in the world, It sourced loads of finance through CrowdCube.
Sugru has been up and down, seen highs and lows, and were eventually sold to Tesa, a German firm, after being started by an Irishman. Tesa are determined to bring them back on top, however, so watch this space for a surge in growth expected in the next two years.
2 – Formlabs
You might have heard of them by now. Formlabs went to the crowd asking for enough investment to fund the creation of an affordable 3D printer. The 3D printer is one of the best inventions in the last decade, with thousands of applications and enough innovation behind it to fuel the creation of car parts, build homes out of concrete, and even create cutlery when you can’t find a spoon.
Formlabs was the first affordable 3D printer on the market that has been entirely crowdfunded. They managed to raise just shy of $3 million, a huge amount of money and fully overfunding their target. The first of their models went on sale in 2013, with those who pledged over $2,299 getting a free printer from their first batch.
If you want to raise money, get the techies involved.
3 – Occulus Rift
By now, we have surely all heard the cautionary tale about Occulus. They were crowdfunded to the tune of $2.5 million, even though their goal was $250 thousand. This virtual reality headset manufacturer then did the unthinkable act and sold themselves to Facebook, betraying the little guy and thoroughly upsetting most of their investors.
Occulus Rift are still going strong. They even created some of the products that they promised to create. However, selling out to one of the firms that their investors were most concerned about left a huge stain on their reputation. Occulus Rift have since gone down in history as traitors to the cause.
Crowdfunding Works
The moral of this story is that crowdfunding works. The next time you have to endure someone telling you that they would start their business if only they had the money, turn them towards crowdfunding… it works better than they might think.
