http://online.wsj.com/articles/crowdfunding-is-opening-investment-doors-1415569542

Like mentioned during COMM 101 lecture, business set-up is now facilitated by a lot of fund-raising options. Among all these options, crowdfunding is quite popular now because it enables the investors to find the investment on their own. However,because it is a new type to raise fund ,therefore it involves both successful examples and failed ones.

As shown on the right, the TikTok has been described as one of the most successful crowdfunding project on Kickstar( a famous crowdfunding platform). It has successfully raised $1 million from over 13,500 backers. Further, Apple even called to be the retailer of it.This revealed some major benefits of the crowdfunding.

1.       The successful project will not only raising money but the mass media’s attention as well.(useful advertising)

2. While raising money for the project, the manager can also conduct the market research.(learn about consumers’ taste)

3. Like TikTok, some companies raise a large amount of  fund just a few days which makes them access to fund instantly.

 

  However, like shown on the figure, the success rate is only 43.7% on kickstarter. It reveals that there are some risks involved,like:

1.The company with complicated products will find hard to well explained them.

2.Others may copy their products when they posted online.

3.Once the business failed,the starter’s reputation will be ruined and hard to restart.

In conclusion, crowdfunding is more suitable for experienced starters in my view. Since they are easier to attract mass attention based on their past experience . Also, the project which is less complicated but fulfills most peopler’s taste should be used for crowdfunding.

http://www.fastcodesign.com/1663858/kickstarters-biggest-success-ever-nano-wristbands-raise-1m-jump-to-apple-store

 

http://multijoueur.ca/2013/11/21/kickstarter-comprenons-nous-vraiment-le-modele/

https://www.lunatik.com/products/ipod-nano/tiktok