Michael A. Stanko, David H. Henard
Crowdfunding is changing how entrepreneurs bring new products to market. It has allowed thousands of innovating entrepreneurs to raise money, build brand awareness, and join a broader conversation with large numbers of potential backers, all while still in the product development process. Examples of crowdfunded products include the Glif, whose creators raised more than $137,000 for the device. The more than 200 Kick-starter alumni providing data for our study collectively raised more than $17 million from roughly 239,000 backers during their Kickstarter campaigns. Since we were primarily interested in product innovations, our research focused on four categories: technology, product design, hardware, and video games. Of the product innovations in the study, 15% were created by individuals or organizations that were crowdfunding their third (or subsequent) campaign.
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