After capital went to investors
In his opinion, the startups that are going with the Kickstarter collection are focusing on the wrong things. Instead of creating products that will appeal to customers in the long term, they show in promotional films a few functions of the device and they hope that they will enchant Internet users in this way, according to Business Insider. He chose a different path himself.
After developing the prototype, he contacted investors and eventually gained 3.5 million dollars from two investment funds and business angels. The money earned allowed entrepreneurs to move with the mass production and sale of Raden suitcases. If Josh Udashkin collected this amount on Kickstarter, one could talk about the huge success of the crowdfunding campaign, because such a result is obtained relatively rarely.
Technological projects are not popular
Internet users support project authors most often with small amounts, usually for $ 25 "per head". In addition, less than half of the campaign is successful. Kickstarter's creators boasted in February that they organized 280,000 rebounds, of which 100,000 were successful and collected a total of about two billion dollars. The majority of successful campaigns are music projects.
The ones in which startups are involved are technological enterprises. Unfortunately, they enjoy much less interest in the online community. According to Kickstarter's representatives, just under four thousand such projects have been successfully completed. In addition, a successful collection on the crowdfunding platform does not guarantee that the promoted product will actually hit the market.