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The Changing Role Of Crowdfunding Platforms In The Hardware Ecosystem

The Changing Role Of Crowdfunding Platforms In The Hardware Ecosystem Comment Now Follow Comments Going by numbers alone, hardware projects should be a win-win proposition for both entrepreneurs and crowdfunding platforms. Seven of the top ten most-funded projects on Indiegogo, a popular crowdfunding platform, are hardware projects. Cumulatively, they account for 83 percent of the total funding (a number that exceeds $2 million) garnered by such projects. Kickstarter, which is arguably the most popular crowdfunding platform today, has a similar story: hardware projects regularly rank amongst the most-funded projects across multiple categories on the site. The funding amounts reflect enthusiasm from communities on such sites to participate in an entrepreneur’s dream. However, delays in delivery (and outright failures, in some cases) are sullying that dream. According to research conducted last year, approximately 85 percent of hardware projects funded through Kickstarter failed to deliver finished products. In other words, only 15 percent of total hardware projects are successful. Even among projects that have successfully delivered to their backers, delays are common. Pebble and Ouya may be the most prominent examples; however, based on conversations with several hardware entrepreneurs, it seems to me that delays are the norm rather than the exception. […]

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