Most people think of crowdfunding campaigns as one shot deals that amount to minimal long term exposure. A campaign (hopefully) gets funded, executes its idea, and disappears into the crowd. But that’s starting to change. Two highly successful successful crowdfunding campaigns, The Pebble Smart Watch and GoldieBlox, are now welcoming contracts from large corporations seeking to sell their products. Ultimately, crowdfunding allowed these two companies to transform their initial idea into a legitimate business venture with long term viability.
The Pebble Smart Watch is a fully customizable e-paper watch that allows users to download new watch faces, use sports and fitness apps, and receive Android and IPhone
notifications. With a design that recalls a wrist-fitting IPod shuffle, the watch raised over $10 million dollars in little over a month’s time. Now, after attracting over 68,000 supporters, the Pebble Watch is set to sell at Best Buy. This is an important landmark for the crowdfunding world as it shows that with the right amount of support and exposure, major corporations are willing to bite.
Similarly, GoldieBlox recently signed an agreement with children’s toy juggernaut Toy R
Us to have their product sold in select stores. Debbie Sterling, CEO and founder of GoldieBlox stated, “We are excited to bring GoldieBlox to such a high profile retailer as Toys R Us, where millions of parents and girls shop for toys and entertainment.” The GoldieBox targets girls aged four to nine as it promotes the engineering field as children build a machine to assist Goldie find her dog. By raising over $280,000 with the help of 5,519 backers, GoldieBlox pre-sold 20,000 toys before gracing the retail market further demonstrating how prosperous this product could be.
Products surface on crowdfunding websites across the globe, but major corporations have never before replaced the crowd by promoting products to retail. Recently, we wrote about how politicians are using crowdfunding as test marketing for political campaigns, but now corporations are doing the same for consumer products.
Still, in the case of the Pebble Watch and GoldieBlox the use of a white label crowdfunding platform might have been even more useful. This would have improved their branding and digital assets, and ultimately aided their journey through crowdfunding to retail.
To learn more about Launcht’s crowdfunding features click here.