Crowdfunding tools like Kickstarter and Indiegogo are all the rage these days in the startup world. That’s because these tools have shaken up the startup community by allowing entrepreneurs to reach consumers directly – not just for funding but for input on their ideas as well. In addition, these resources could allow startups to bypass traditional financial backers like angel investors and VCs. Sure it’s exciting when the status quo is unsettled. But the question remains, how much faith can startups afford to put into crowdfunding tools? Sure, these platforms can help test a product or project’s appeal before it reaches a wider market. But does early success on Kickstarter necessarily translate into success on the store shelves?
In this edition of the Exchange we ask the following question: Can crowdfunding resources like Kickstarter offer sustainability for startups?
Kara Miller, host of WGBH-FM’s “Innovation Hub,” argues that crowdfunding resources offer startups and entrepreneurs more than money . They also help build communities of consumers who are committed to the future success of new products and ideas.
Jules Pieri, founder and chief executive of Daily Grommet, says crowdfunding can help a startup’s product or idea get noticed , but entrepreneurs need more than a successful crowdfunding campaign to develop a successful business.