With the skyrocketing usage of crowdfunding and the several success stories that crowdfunded businesses have, there is hardly any doubt that it is indeed a rising industry. In the past year, crowdfunding websites raised a staggering $5.1 billion. Today’s hottest innovations involve business crowdfunding — which has become an incredible tool for entrepreneurs looking to launch new products or grow, scale businesses.
Image Source Allbirds
One of the best crowdfunding examples is Oculus. Palmer Luckey, the founder of Oculus Rift, was 20 years old when he thought up his idea. The campaign started in 2012 on Kickstarter to raise $250K which it reached within 4 hours and raised a total amount of 2.4 Million USD making Oculus one of the most popular crowdfunding campaigns at that time.
Facebook bought out Oculus VR for 2 billion dollars later on in 2014. Palmer Luckey’s company is now part of Facebook family apps and services that are available today. Based on the forecasted sales of Oculus Rift, worldwide revenue is projected to total $4.95 billion in 2019 which is only from hardware.
The Coolest Cooler is both a success story and a cautionary tale. The demand far exceeded the company’s capacity to deliver, so they had to raise more funds. The funders of their Kickstarter project were asked if they wanted them to go through with their orders or cancel it after all that support – but not without giving backers who supported in 2013 an opportunity for some sort of compensation!
In 2014, Allbirds launched its crowdfunding campaign, quickly becoming one of the most successful crowdfunded businesses in the world. They raised 120K U.S. dollars within 5 days with 970 backers.
The brand is reportedly one of the fastest-growing footwear companies globally, having collaborated with Nordstrom, Outdoor Voices, Shake Shack on more than just shoes themselves- other collaborations include clothing lines too. This is one of those crowdfunding examples that proves that simplicity in the campaign can go a long way.
After successfully launching and developing this product over 2 years- which raised nearly $50M dollars in 2017 alone- the company has been valued at around one billion dollars after just 2 short years on market (attracting investors such as Adidas).