***kickstarter***

Kenai said:
No, from what I can gather, the company has posted some sort of update regarding their 'state of business' but only as an update on Kickstarter for backers to view at the moment.

Looking around suggests in addition to Kickstarter, they also secured nearly $2m in venture capital funding and the implication is they've somehow managed to blow it all and not be able to fulfill orders/backers.
Click to expand...

The update is:

Kickstarters,

During the last several months, we hit unforeseen design, cost and production delays in our business. Although we were able to complete and begin shipping product, we do not have the financial resources to continue functioning as a company without additional investment. We have spent the last two weeks in domestic manufacturing while simultaneously trying to raise additional capital.

While we are looking at these options and to maintain the viability of the company, we have made the gut-wrenching decision to hibernate many of the functions of our current business, including manufacturing, marketing and sales. This means that we’ve had to lay off some of our employees. As a result, you may already have experienced delays and disruption to some of our communication. We apologize for the inconvenience this has caused.

In addition, we aware of some issues with the initial encryption sequence, fingerprint authentication, pairing and power. We want to ship you the best product possible and we are working on RMAs, fixing issues and iterating new builds of the firmware. We ask that you please be patient with us as we work on all of these things simultaneously.

Our plan to is to continue on our development path while we raise additional funding to bring the company back to full operation. I will keep you posted as we have updates. I realize that this has been a very bumpy journey but I remain committed to getting the business back on track and fulfilling the commitment to our backers.

Best,

Benjamin Chen, CEO
Click to expand...

They got almost $500k from Kickstarter and $1.5m+ more from an outside investor :mad:
 
There seem to be a lot of businesses that use Kickstarter as a way of funding improvements. I own a bar an Independant bar/club/live venue Oldham and with it being sometimes a run down mentality town we struggle quite a bit. Would it be worthwhile attempting to start a Kickstarter campaign to help make improvements to the place and put on bigger and better events? Or would it be a fruitless endeavour?
 
The most successful KS are those that you get something from it. The ones that just reward a name on a website or some other silliness generally don't get funded.

KS is not a miracle solution.
You are basically selling products/tickets at a reduced price, which means when it goes on sale at RRP, you have less customers as loads have already got it cheap.
So it's like an easier loan. Rather than interest your taking a hit on profit for every product. But unlike a loan, you are getting advertising. Good or company killer depending how you handle KS campaign.
 
I have seen businesses get crowdfunded before, like shops and bars so some people obviously do it successfully.

inb4 copy what they did
 
You must log in or register to reply here.
Back
Top Bottom