4 ms·
What are the pros and cons of crowdfunding, vs. self-funding, vs. VC-funding for a hardware startup? When should I be using which sort of funding?
by jmcmahon443 11y ago
What are the pros and cons of crowdfunding, vs. self-funding, vs. VC-funding for a hardware startup?
When should I be using which sort of funding?
- drabie 11y agoLots of pros and lots of cons here... Crowdfunding: Pros --> Big platform that you can piggyback on; somewhat well-understood form of funding; can leverage to build a brand Cons --> Less control over your brand and your message (e.g. hard to A/B test); commission Self-funding Pros --> Complete control over your website, message, brand, etc. Can offer whatever incentives you want. Cons --> Harder to get the word out, generate press, access early adopters VC funding --> This is important should you want to build a high-growth business and avoid the pitfalls of a lot of Kickstarter campaign. We've supplemented our Kickstarter campaign with VC funding and used crowdfunding as a means to get early adopters, build our brand and fund our first production run.
- Hykso 11y agoHi jmcmahob443, My name is Khalil, CEO of Hykso (www.hykso. Are you talking about product crowdfunding like Kickstarter and Indiegogo or equity crowdfunding?
- thirru 11y agoHey Khalil, What was the main reason for you going with a selfstarter (your own website) over IGG/KS? Would you do it again?
- jmcmahon443 11y agoBoth.