[Note: repost from earlier this year]
I just returned from my second China visit of 2015. I spent three days at the largest sourcing fair in the world, the Canton Fair.
The remainder of my two-week trip was made up of visiting factories and building my China-based vetting and QC team.
This trip didn’t leave me with a notable, “How’s China?” update. Instead, what’s been striking to me over the last three months is how much of Thayer’s growth has been fueled by crowdfunding (What is crowdfunding?) projects, in particular those launched on the web-platforms Kickstarter and Indiegogo.
This is no coincidence as the following crowdfunding trends read like a description of Thayer’s ideal client.
- New design and technology products are coming to life as a result of crowdfunding. Crowdfunding sites raised $16.2 billion in 2014, 167% more than 2013 (reference). In Q2 of 2014, design and technology products ranked in the top 5 in amount raised on crowdfunding platforms, together accounting for more than $50m of investment (reference).
- Greater New York City is home to far more successful crowdfunding projects than any other area. 14% of worldwide crowdfunding pledges support New York City and Brooklyn campaigns. (reference)
- Chinese factories are producing the biggest campaigns’ products. I wasn’t able to find sources to support this theory, but my experience is that China is the #1 destination for the fulfillment of big, product-based crowdfunding projects (>1000 backers/pieces).
- Mass production delays are the rule, rather than the exception for the most successful campaigns. According to a 2013 Wharton Business School study, 75% of crowdfunded projects were late and, more tellingly, the degree of lateness varied proportionally with the amount of funds raised.
The co-founder of a Kickstarter campaign chose to work with Thayer (instead of larger competitors) because he wanted to“take a more freelance approach to manufacturing.” My hope is that the personal, flexible approach offered by Thayer will continue to thrive together with this new movement in product design and delivery.
You can see more about how we work with crowdfunding campaigns on our website. Please message me with any relevant news and/or people who are working in the crowdfunding space. Thank you!