Top 3 Crowdfunding Tragedies

#1 OVERFUNDING: Radiate Athletics: The Future of Sports Apparel

  • radiate
  • CEO quote: “The whole thing has been a nightmare.”
  • Summary: Unexpected success, no mass production strategy
  • Stats: asked for $30k, raised $580k = 1833% overfunded
  • The whole story
  • Moral: Prepare for the best. Make sure you’ve gotten feedback on feasibility, MOQ and price from a *factory* (not just an engineering team or prototyping lab).

#2 TECHNOLOGY: The Pocket Drone – Your personal flying robot

  • pocketdrone
  • CEO quote: “The company’s leadership … took on over $100,000 in personal debt … in order to assemble and ship all the units that were ordered.”
  • Summary: Product not engineered for mass production
  • Stats: asked for $35k, raised $929k, overfunded 2555%
  • The whole story
  • Moral: Engineer for mass production. If you ever hope to make a profit from your product, you need to design something that is relatively straightforward to mass-produce. A working prototype is not necessarily proof of this.

#3 CHINA! Kreyos: The ONLY Smartwatch With Voice & Gesture Control

  • kreyos
  • CEO quote: “[My worst decision was] falling victim to … VIEWCOOPER CORP and its CEO Pro Yang who, ultimately perpetrated an intricate conspiracy against Kreyos.”
  • Summary: Eaten alive in China
  • Stats: asked for 100k, raised $1.5m = overfunded 1402%
  • The whole story (must read for anyone who’s been to China)
  • Moral: What can go wrong, will. Murphy’s Law is the only law you can count on. Always have a backup factory and references whenever possible.

 

We put our clients in direct contact with factories in China from the outset, double check timelines and budgets and answer all your questions about how manufacturing in China works.

Learn more on our website

Email joe@thayer-consulting.com if you know someone who’d like a free coffee or phone call to learn more.

Thank you!

Joe

 

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