Questions

Crowdfunding

I am a UK-based designer of an innovative powered interior window shutter with smartphone control. I need funding to launch in the UK B2C

I am considering a kickstart campaign or selling equity in the company. We could launch as soon as April/May. We have a partner factory in place in China.

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Answers

Guilherme Rocco

Strategy Specialist

re deciding between validation capital (Kickstarter) and growth capital (Equity).

If your main risk is demand uncertainty, Kickstarter can validate the market while funding initial production.

If your main constraint is capital intensity (tooling, certifications, inventory, working capital), equity may be more appropriate.

For hardware in the UK B2C space, production readiness and certification timing are critical. Crowdfunding works best when operational risk is already minimized.

The decision should be driven by risk profile, not preference.

Answered 3 months ago

Herbert Prokscha

Founder of American food companies.

Kickstarter campaigns can be tricky (if you do not make your goal you get 0). However you have a technical product so it can be doable. If you go that route, give yourself enough time to get your social media campaign up and running. Also beware of companies offering to do your campaign or social media - they are mostly vultures.

Having done startups myself I suggest you either go for debt (convertable) or a minority equity partner. Make sure all the paperwork is clean and the i's dotted and the t's crossed.

Answered 3 months ago