Will 2013 Be The Year Crowdfunding Skyrockets?
In 2012, crowdfunding leaped beyond trend status and further rooted itself as a viable funding option that's here to stay for entrepreneurs and startups who want to quickly get their projects off the ground. For crowdfunding platforms like Kickstarter and Indiegogo, 2013 may be a year of significant growth. In his guest post on Forbes.com, David Drake, founder and chairman of LDJ Capital predicts that "the global crowdfunding will double in annual revenue to $6 billion in 2013."
There have been a number of successful crowdfunding platforms that have appeared and more are being added to the list. The crowdfunding options for an entrepreneur are certainly not limited. Crowdfunding gives entrepreneurs direct access to individual investors. In a recent interview on a NextMarket Insights podcast, Mark Cuban was asked for his thoughts on crowdfunding and he shared that "Kickstarter should be a requirement for every startup" as a complement to what a private equity or an angel investor might offer.
In terms of funding, we're not talking paltry sums of money. These crowdfunding projects are raising serious funds. I recently spoke to Jon Kimmich, contributor and editor of The Crowdfunding Bible. Kimmich is a games industry expert and has served as a consultant to companies, individuals and investors in the industry. He provided a few examples of successfully funded gaming projects:
- Seattle-based Harebrained Schemes raised $1.8 million for their turn-based game Shadowrun Returns
- Double Fine Productions raised over $3.3 million to create an adventure game.
- Chris Roberts of Cloud Imperium Games raised over $2.2 million on Kickstarter alone but all together his crowdfunding has exceeded $7.7 million to create a Space Sim for PC.
Along with the many examples of successful crowdfunding campaigns there has been a fair share of failures as well. Why have some failed? Kimmich mentioned that many people often fail to recognize that careful planning is required.
There is much to learn about how to best leverage these platforms and how to put together a campaign that will attract investors. If you are serious about breathing life into your next idea, you will not want to miss this week's Venture Lab: Is Crowdfunding Right for Your Start-up? on Thursday January 10th.
Jon Kimmich will serve as moderator and you will hear advice from panelists who have run successful crowdfunding campaigns:
- Bob Berry, Founder & CEO, Uber Entertainment (raised over $2 million)
- Mitch Gitelman, Co-founder, Harebrained Schemes Studios (raised $1.8 millon)
- Steve Harris, Founder & CEO, Think Automatic LLC (raised over $36,000)
It is your opportunity to learn from their experiences and get advice on how to properly plan and run your crowdfunding project.