By Ken Schachter
WWR Article Summary (tl;dr) Sarah Meister, hardware and design outreach manager for crowdfunding website Indiegogo, says that crowdfunding entrepreneurs should figure on running a campaign for one to three months at minimum and spending 20 percent of the amount they plan to raise.
Successfully raising capital through a crowdfunding campaign — seeking contributions from many people, usually via the internet — is harder than it looks, an executive of Indiegogo told an audience of Nassau County inventors and entrepreneurs in Mineola Monday night.
Sarah Meister, hardware and design outreach manager for San Francisco-based crowdfunding website Indiegogo, said that high-profile campaigns are the product of months of effort.
“People have a lot of preconceived notions of crowdfunding,” Meister said. “I just want to emphasize all the work [that went into ] those blockbuster campaigns you read about . . . It is incredibly grueling launching a crowdfunding campaign.”
Speaking before an estimated 60 people at a meeting of the Nassau County Inventors & Entrepreneurs Club at the Theodore Roosevelt County Executive and Legislative Building, Meister said that crowdfunding entrepreneurs should figure on running a campaign for one to three months at minimum and spending 20 percent of the amount they plan to raise.
Entrepreneurs often seek money before a product is launched. In return, the contributors typically get a discount or other incentive once a product is launched. Contributors don’t get equity stakes in the company raising the funds.
Indiegogo, which competes against other crowdfunding sites such as Kickstarter, takes 5 percent of the funds raised by entrepreneurs, Meister said.
Before an Indiegogo campaign is launched, Meister recommended, the startup needs a working prototype of its product, an “engaged, excited audience,” and a deal in place to manufacture the product.