How many times while sitting at work, watching TV, or lounging around in your favorite coffee shop have you thought about your invention idea? Maybe you even told yourself, “If I could only get that small amount of invention money, I could turn my invention idea into a reality”. Unfortunately, there are quite a few problems with the standard ways of trying to get funding for your ideas.
The Rich Uncle
You try to hit up your relatives again for your invention money. It wasn’t your fault that your first two invention ideas failed miserably. Unfortunately, your rich Uncle who provided several thousand dollars in invention funding for these two previous projects wants nothing more to do with you. The rest of your relatives tell you that you will never have a successful idea. But you’re not discouraged and decide to travel to your local bank to see about getting a loan.
The Local Bank
Sure, you know that the economy is in rough shape right now but you are confident that the loan officer at your favorite bank will fall in love with your invention idea. After you pitch your idea, the loan officer stares blankly at your face while she stamps a giant red DENIED across the top of your loan application – There goes your invention funding.
Venture Capitalists
Your hopes are still high and you decide to reach out to several venture capitalists in the area. These venture capitalists smile at you with perfect teeth and tell you that before they will give any invention money that you provide them with:
- A significant portion of your royalties OR
- A majority stake in your business OR
- Require that you make significant modifications to your invention idea design first OR
- Require that any changes that you propose to your design go through a design committee where they must be approved.
By now, you are totally and completely discouraged. Why would you ever want to let someone else take control of your invention idea? Is there any place that will provide funding for ideas that can be turned into profitable inventions?
Relax, all is not lost.
Get your Invention Funding through Kickstarter.com
Kickstarter.com is composed of:
- Inventors, artists, or authors that are looking to get funding for their various projects.
- A diverse community of individuals that want to donate their hard earned money to help support these projects.
From an inventor, artist, or author standpoint, you put out a description of your project (typically via a video), define how much invention money you are seeking, and define a time limit in terms of when you want to receive your funding by.
All dollars pledged by donators are held in escrow by Amazon.com. With Kickstarter, it’s an ‘all-or-nothing’ system. Either you reach your required level of funding within your assigned time limit or you don’t.
If you meet your funding and time requirements then Amazon will release the funds to you. You can then spend this money in any fashion you wish to try and turn your invention idea into a reality. On the other hand, if you fail to reach your invention funding goals within the time limit, the individuals that pledged money to your project are NEVER charged. Therefore, you receive nothing.
Tiered System of Rewards Based Upon Donation Amounts
Although rewards based upon donation levels are not required, it’s generally a good idea to implement them if you want to have a successful Kickstarter funding campaign. There has to be some hook for potential investors to want to give you their hard earned dollars other than, “because it will give you a great satisfaction in knowing that you have helped me out”.
You’ll need to provide various levels of rewards based upon the amount donated. Kickstarter refers to these hooks as a “tiered system of rewards”. Get creative with the various rewards that you come up with. No one wants to receive another T-shirt or a coffee mug printed with a stupid company slogan. If you can’t come up with anything novel, look at some of the videos from other successful Kickstarter projects that managed to meet their funding levels. Remember, imitation is the greatest form of flattery (it’s also the most profitable, as well).
Oh, one other important point for those of you that managed to reach your target invention funding requirements in the allotted time limit: If you promised your backers that you would mail them something (i.e., T-shirt, coffee mug, a book, whatever) realize that you will need to pay shipping and handling for all of these items. Don’t forget that there will also be a significant time commitment required on your part to box and ship these rewards. Therefore, think ahead of time for rewards that can be sent electronically rather than requiring a physical product, if possible.
Other Great Reasons to Use Kickstarter for your Funding Needs
You Don’t Need a Business Plan
I don’t know about you but the majority of inventors out there don’t have a business degree. Not only that, but most inventors don’t know the first thing about writing a proper business plan. Although business plans are generally a good idea to have, Kickstarter does not require one for your project.
A Visit from a Potential Manufacturer
Not all of Kickstarter’s community members are people just like you. There have been several cases where product manufacturers have been lurking in the background and sniffing around successful funding campaigns. Who knows, maybe your product is exactly what they have been looking to manufacture?
Zero Travel Required to Get Funding
So you talked with your relatives to try and getting funding, you drove to various nearby banks to get a loan, you maybe even traveled across the country in order to pitch your ideas in front of venture capitalists. Who knows how much time, effort, and money these trips sucked up? However, Kickstarter campaign requires ZERO travel.
Market Research Campaigns are Awfully Expensive
How many times have you wondered if there would be any consumer interest in your invention idea to begin with regardless of whether you can turn a profit or not? The Kickstarter community is composed of a host of potential consumers. Listen to what they have to say. Hopefully, these community members will praise your idea. However, if they provide you with a host of tips or potential redesigns, don’t get discouraged. Consider this sort of feedback as FREE market research.
Services that Kickstarter Does Not Provide
Kickstarter does not supply:
- Legal advice
- Supply manufacturing contacts
- Business advice
- Contracts of any form
- Marketing advice
- Financial advice
Requirements to Put your Project on Kickstarter.com
There are a few requirements that you need to be aware of in order to participate in a Kickstarter project so please pay attention here to find out if you are qualified:
- You must be a permanent US resident. Our apologies to our non United States readers.
- Have a social security number
- Be at least 18 years old
- Have a bank account in the U.S.
- Have a U.S. address
- Have a U.S. issued form of ID
- Have a major debit or credit card.
Help Center
If you need more information visit Kickstarter’s Help Center.
In Our Next Post
Click HERE to find out more in-depth ways to improve your odds of success for a Kickstarter project. In this post, we also talk about ways of staying positive if your Kickstarter campaign fails to generate the required invention funding amounts in the defined time limit.
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