Crowdfunding Your Invention II Mark Nowotarski (Patent Agent) [email protected] 203 975 7678.

Crowdfunding Your Invention II

Mark Nowotarski (Patent Agent)

[email protected]

203 975 7678

Crowdfunding• Make a prototype: Make a video: File a patent

application.• Post on internet with pricing, funding goal, and

funding deadline (e.g. 30 – 60 days).

• Promote it: Promote it: Promote it!!!!!• Take committed orders guaranteed by credit card.• If you meet your funding goal, everyone gets

charged, you get $, you make and deliver the product.

• If you don’t meet your funding goal:• You get your $ anyway (IndieGoGo)• You get nothing (Kickstarter)

Three classes related to inventions

Mechanical Design Electrical Technology Games

Name

Video

Description

Progress& Goal

Project Creator

Awards

Example: Flote

AwardsToken

Product

Special honor

$1

$10,000

No debt (e.g. interest)No equity (e.g. stock)……yet

What Does it Take to be Successful?• Good awards• Sell what people are buying• Emulate other successful projects

• Media coverage• Enthusiast sites– Gizmodo/Techcrunch /IGD • Social Network – Kickstarter itself• Reputation of people associated with project

• Planning & Preparation – perhaps for a year• Business plan – Plan on cost overruns and delays!• Prototype made, production facilities lined up• Video

• Communication with backers• Especially when things go bad

Sell what people are buyingOriginal success

Pen type A - $280,000August 2011

Minimal metal pen for Hi Tec C cartridge

Emulating Success

Ti2 pen - $77,000June 2012

Render K - $69,000Jan 2012

phx-pen - $69,000Apr 2012

Ti pen - $220,000Aug 2012

Pen proj.- $46,000Aug 2012

[md] pen $6,000Aug 2012

Minimal metal pens for Hi Tec C cartridge

Media Coverage – Enthusiast SitesDetails announced one week before launch•engadget.com•ign.com•reddit.com•kotaku.com•etc, etc, etc.

HeadlineA $99 hackable Android game

console designed by Yves Behar

How did you hear about Ouya?“I first saw this on Engadget.”

“I saw a story on IGN and I jumped in right away.”

“I heard about Ouya from reddit (/r/gaming)”

“Most would have seen the Kotaku story and followed it here.... Like

me.”and

“I look at Kickstarter almost daily “

“browsing the most popular kickstarters “

Planning and Preparation &Communication with Backers

Funded May 2011No product deliveredBackers outragedCurrently being suedLast update Nov 2011

Funded Sept 2010No product deliveredSome backers angrySome backers supportiveLast update July 2012

• Crowdfunding is growing.• People are learning how to make it work.• Awards: Sell what people are buying• Media: Enthusiast sites• Planning: Expect cost overruns• Communication: Never stop

Looking Ahead

Next year – Equity Crowdfunding! (courtesy of the JOBS Act)

Epilogue