Crowdfunding has revolutionized the entrepreneurial scene in the current age of startups, inventions and personal goals. It has made it possible for new products seeking market validation to get exposure and funding in the process.
Whichever product idea has crossed your mind, you could get financial support through crowdfunding as long as you can back it up. It could be new types of online casino games to rival the competition or even a new way of engaging in online gambling. You just have to convince enough people to join the campaign for your project by helping you raise money.
On the other hand, according to Kickstarter stats, only about 37% of crowdfunding campaigns reach their financial targets, meaning that the majority of dreams and goals die right in the crib. This just goes to show that experiencing a favorable outcome at crowdfunding is not a walk in the park. Moreover, after successfully securing crowd-sourced funds, some projects end up failing to deliver promised results as agreed.
Of course, others have developed into million-dollar successful companies that continue to thrive to date. And these successful examples are what we’re here for today. So here’s a look at the five most successful crowdfunding projects:
The Everyday Backpack, Tote and Sling by Peak Design
Peak Design is a recurring name in crowdfunding, and for a good reason, they may well be named the crowdfunding wizards. With their ability to deliver on projects as promised, Peak Design’s reputation has led to the success of many of its Kickstarter campaigns. For example, the Everyday Backpack was first developed for carrying photography tools but widely became a versatile accessory that could help organize any carrier’s items.
Of course, its spin-offs, such as the Tote and the Sling, have also adapted well to the market. Side access, weatherproof property, configurable storage and dedicated laptop & tablet sleeves are just a few of the features that drew over 26,000 backers who pledged over $6 million. This project’s success spearheaded Peak Design’s trend of having backers on crowdfunding sites finance the launch of new products in the brand. More accessories have been added, thanks to more crowdfunding campaigns by the genius startup.
The Multipurpose Travel Jacket by BauBax
BauBax’s travel jacket became the most funded crowdfunding fashion project after effectively managing to raise $9.2 million on Kickstarter and $2.3 million on Indiegogo in 2015. This is a smashing figure compared to the targeted $20,000. The idea was hatched after Mr. Sanghavi, the founder, ended up buying over 9 travel pillows in less than 3 months due to consistently forgetting to pack one on flights.
The campaign for the original pillow, which had 15 features, was set for 58 days, but it beat the deadline thanks to the 44,949 backers on Kickstarter and 10,433 backers on Indiegogo. With four different styles and colors to choose from, it is no wonder that backers wanted to get their hands on this fabulous product. Although some delays were causing a significant uproar from most of the supporters, Baubax managed to launch a second Kickstarter campaign that was also successful, raising over $4 million for the 2.0 version, which had been revamped to include 25 features. In addition, the brand has grown to include travel shoes and pants.
Exploding Kittens by The Oatmeal
Managing to raise over $8.7 million from more than 219,000 backers, Exploding Kittens became the #1 most backed up campaign on Kickstarter. The phenomenal $20 card game with a twist immediately went viral, leading to the initial modest target of $10,000 being exceeded by an unimaginable sum.
It turns out that cats and explosions in a game meant to bring the community together are a showstopper. While this may have sparked some controversy in the animal rights world, the concept of the cats blowing themselves up was interpreted as harmless humor, and the project was a go. The development team has since released new versions of the game, including party versions, and the game still boasts continuous success to this day.
Pebble Time and Pebble Time 2
In 2012, Pebble became the most successful Kickstarter project of its time, getting more than $10 million in pledges. The wearable technology market was in its infancy, and hopes were through the roof on the possibilities this new tech would bear. But, unfortunately, four years into a booming company, Pebble reported bankruptcy and sold all its assets. So why do we categorize it as a success? Well, the funding, for starters, since they even went back for another campaign that was generously backed as well. But, most importantly, the influence this piece of tech had on the industry is remarkable.
EOS Blockchain boasts the highest amount ever raised in crowdfunding history. For a project that began the campaign way before any actual launch, the EOS team is truly the master of resource mobilization. To add to this, they used a rival platform, Ethereum, to raise around $4.1 billion in crowdfunding capital that would enable them to launch their platform. Today, EOS is still in the works but has accomplished so much for other startups.
What Do You Have on the Table?
The effectiveness of crowdfunding lies in the ability to deliver and the strong belief in a cause. Regardless of the niche, the apparent usefulness of the cause being pitched or the bizarre nature of the project, backers are willing to contribute to anything provided they can see the potential in it.