Nowadays more and more companies choosing crowdfunding as an investment source for their startups. Except for the obvious financial reason, there are many other reasons for turning to crowdfunding, which is explained in the article Why should big companies turn to crowdfunding?
In this article, we will walk-through 5 companies which are known as multi-million dollar brands, though they’ve built their path to the worldwide business by starting a campaign in crowdfunding platforms such as Indiegogo and Kickstarter.
1. Oculus VR
Oculus Rift was created with a simple idea of bringing VR experience to passionate gamers. By the time when Palmer Luckey founder of Oculus Rift started a crowdfunding campaign in 2012, he was 20. When the campaign was over he got more than 9,500 backers that raised $2.4+ million. Later on, in 2014 Facebook acquired Oculus VR for 2 billion dollars. Today Oculus Rift is known as a member of Facebook Family of apps and services.
Revenue from Oculus Rift is forecasted to amount to 4.95 billion U.S. dollars worldwide in 2019 and that’s only from hardware.
The Idea: Oculus Rift was created with a simple idea of bringing VR experience to passionate gamers.
Founder/s: Palmer Luckey was 20 years when he got the idea
Crowdfunding: Campaign started in 2012
PopSockets are small plastic contraptions that “pop” onto the back of your phone. The 1st version of Popsocket was created in 2010 by David Barnett who was a professor of philosophy in Colorado. David was looking for a way to stop his earbud cord from getting tangled, and he achieved this by gluing two buttons to the back of his phone and wrapping the earbud cord around the buttons. As ugly as the buttons were, they worked.Crowdfunding campaign for popsocket was launched in 2012, even today on amazon.com popsocket is one of the best-selling products in the category Cell Phone Accessories.
In 2018, PopSockets LLC’s revenue was over $200 million U.S. dollars, with a profit of over US$90 million.
Allbirds launched its crowdfunding campaign back in 2014. Top media outlets are writing about Allbirds as the most convenient and comfortable footwear ever. With the crowdfunding campaign, they raised 120K U.S. dollars within 5 days with 970 backers. Today Allbirds is the beloved footwear of silicon valley residents.
After just two years of the start, the company valued at $1.4 billion and just in 2017 they generated $50 million in revenue.
4. MVMT watches
Since 2013 when the company was started by two college roommates up to 2017 MVMT watches sold over 1.5 million watches, sunglasses, and other similar products. They started with the crowdfunding campaign on Indiegogo, and then started another one where they raised totally around $300,000 with the help of 3850+ backers.
Within 4 years they generated well over $100 million in total revenue.
*An interesting fact that their initial pitch was rejected from kickstarter, not once, but twice.
“Really Good Sheet” is the first thing what you see when you go to Brooklinen website Today, before having this statement family couple from Brooklyn started crowdfunding campaign back in 2013 and raised $236,000+ with the viral strategy of big and bold images of pets on the bed with their sheets. That worked and works till Today, they are posting cute images with animals in bed on Instagram that people want to share.
Revenue of Brooklinen just in 2017 was around $48 million.
These stories show how crowdfunding helps to boost startups when there is no other source for investment or if the founders don’t want to give shares at the early stages of their companies formation.
Feel free to ask questions or support me with your comments and if you like the article I’ll write about another 5 companies which started with the help of crowdfunding.