Exploring Scaling Product Brands and Crowdfunding platforms.

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Hello everyone. I am creating this thread to get a general overview of how actively engaged or disengaged this community is with crowdfunding. I was hoping that this conversation could include some platforms you have used and overall thoughts on crowdfunding.
  • Profile picture of the author hayeskt6
    Hey so i'm still pretty new here. I got a notification that I received a reply on this thread. I just can't find it if anyone know where to look.
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  • Profile picture of the author George Schwab
    I'm new to crowdfunding, but really like it so far. Did 2 campaigns in 1 week.

    Besides crowdfunding works well together with media attention and press releases,
    just like Hans & Lotte.

    Definitely the current NOW-future.

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  • Profile picture of the author George Schwab
    Tell us something about your own platform experience

    For example: What do you thinks works better: Go into product funding at sites like
    kickstarter and indiegogo --- OR go straight into financing like with equity net ?

    I suppose the difference would be consumer vs investor?

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    • Profile picture of the author hayeskt6
      My experience with crowdfunding platforms (and p2p lending) is limited to Kickfurther , Kickstarter, Indiegogo, and Upstart.

      I feel as though it's only better to go with Kickstarter if you're able to put the time and effort into marketing your initial campaign. In order to do that, you have to have somewhat of a team to do so or have enough bandwidth and experience to do so yourself. This brings me to the advantage of doing something like p2p or equity funding. They allow you to gather the resources in order to build a team if that is a concern. Then you run into the issue of how much debt are you willing to accrue/ how much equity are you willing to give out for the funding. This will also affect which people you can bring on to your team because you may want a bigwig that requires more equity then you can budget for them.

      As for the last platform being Kickfurther, I feel as though they could be the best rising option for funding once you're already established. Lets consider a scenario where you the business owner have 100X more demand then supply. You could turn to a few options to finance the inventory. They are paying for it yourself with a line of credit (if it's good enough), going to a bank and potentially having to deal with their unreasonable rates or the high chance of getting denied, going through p2p/p2b platforms(you can use any of the hundreds here for an example) , or going through consignment platform like Kickfurther. I feel as though the advantage of Kickfurther opposed to these others is that there is generally less risk because it's not an investment (i'll explain why i feel that), they market you independently and work with your team, and you get a chance to give back to your users/fans.

      Now when I said there is less risk, I said that because it's not an investment. If you are using the Kickfurthers platform, you are able to purchase inventory on consignment. As the brands sell the products you earn profit. The other nice part that I find attractive about this platform is that many of the brands looking to raise money are purchase order backed. As for giving back to your community, Kickfurther allows your community to support your brand which they love by purchasing it and earning profit.

      I'm obviously biased to Kickfurther currently because i'm making money. I'm completely up for someone to play devil advocate here though!
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  • Profile picture of the author George Schwab
    interesting! Does Kickfurther require the fund raiser to be a legal inc. in the US?

    "able to purchase inventory on consignment"
    sorry, only got 1 coffee this morning so far
    could you explain some details on that topic?

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    • Profile picture of the author hayeskt6
      When it comes to whether or not Kickfurther can work with people outside the U.S, its simple. They used to work with companies regardless of where they are located. In the past few months, they have changed over to requiring the inventory to be held in the U.S and they have to have a bank account in the U.S. The reason for the inventory being held here is because they have to be able to potentially ship the inventory to the users in the U.S. and they require U.S bank accounts to easily transfer capitol (to and from the users). Now I know they work with expats because my brother went through Kickfurther and his company is incorporated in Delaware but now runs out of Thailand.

      The importance of the inventory being held in the U.S rest in the consignment they provide. Now what I mean by that is they offer brands the ability to engage the KF community to purchase the inventory on consignment. This just means that instead of the brands financing the inventory, they reach out to the KF community. The community then has the option to purchase packs of inventory so when the brands sell said inventory, the community earns profit as they technically own the inventory. That is why I said the inventory has to be held in the U.S because if the company fails, the KF community can receive their inventory or choose to allow KF to liquidate the inventory. It's important to realize that many of these brands have the inventory already sold through purchase orders. This reduces the risk of not earning profit because you are technically purchasing inventory that is already sold. I hope that explains it thoroughly, I can probably answer more an be more specific for you too.
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  • Profile picture of the author George Schwab
    Ahh, thanks for that. Now I get it. it's about to engage the community to purchase the
    inventory on consignment. I'm not sure if i want to do that. I shipped a lot of stuff, and
    everytime i ship something again, the items got smaller and smaller, until they finally
    disappeared completely. Now the 'shipment' was just a confirmation email.

    Well to incorporate in Delaware is easy enough, including virtual office,virtual secretary,
    virtual minutes meetings and virtual coffee.

    Possibly the equity funding market is approached in an easier way by going with single
    major investors, instead of a huge group of people that drop in their $25 each. Its easier
    to deal with individual people that do the big investments, instead of keeping a crowd
    happy. Besides angel investors are in that position for a reason: they are smart and easy
    to approach by like minded people. So i possibly go into that field, nevermind the paper
    work with the Delaware agent.

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    • Profile picture of the author hayeskt6
      Sorry for the slow reply, I completely agree with you that it's easier to work with individuals then a big group of people. I have found the fact that they are able to get everyone together for a co-op to be amazing. It might the romantic in me but I admire their process. As for the inventory, you're right. I have only been getting email with the brands updating me on the status of my inventory. I prefer that though because Ive practiced drop shipping and done reselling before. The drop-shipping was nice because my tiny house never turned into a warehouse like it did when I resold. It's definitely the platform for me at this time.
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  • Profile picture of the author Michael Ten
    Check out Patreon! I think Patreon fills a much needed gap in crowdfunding!
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  • Profile picture of the author TheGlobalHiker
    I think the best platform is kickstater or indigogo.
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