Know before you hit go

3 tips for a successful crowdfunding campaign

It's not easy getting green. Getty Images

Kickstarter is a widely popular crowdfunding platform that helps people to raise money and awareness for their creative projects. While known for product-focused campaigns, musicians to film producers have also achieved success on the platform. In September of 2017, my Houston-based startup GetAlcove.com launched our first kickstarter campaign. While we exceeded our campaign goal, it was a very intense 45 day campaign. Let's consider the statistics:


Yes, almost 70 percent of projects fail. Don't fret. Understanding how to effectively plan and launch your campaign will increase your chances for meeting your campaign goals.

By March 2017, my co-founder and I received enough customer feedback to warrant the pursuit of developing Alcove Workstation™ further. We were attracted to crowdfunding as it presented a viable option for validating our concept with a wider audience while also raising the initial working capital necessary to mass producing Alcove. After researching the various crowdfunding platforms, we decided on Kickstarter as it is well known for launching product-focused campaigns and has a strong brand that we could leverage during our marketing efforts. While we read countless publications on how to prepare for our crowdfunding campaign, our experience on Kickstarter garnered three key lessons.

1. Spend up to one year prepping before launching your campaign.

I can't stress this enough. After we decided to launch, we spent six months engaging with our target audience and obtaining verbal commitments from friends and family and past colleagues to back our project. We also presented at local events and evangelized our brand via social media marketing. In hindsight, we should have spent additional time finalizing the production ready sample of our product prior to launching.

Once you launch your campaign, the clock starts ticking and you'll need deliver fast. Due to a myriad of issues with remote manufacturing, we inevitably missed our original ship date. Fortunately, the kickstarter community is forgiving and recognizes the inherent challenges with bringing a product to market. Even so, I recommend launching your campaign as close to your final concept as possible to reduce unforeseen delays with manufacturing and shipping logistics.

Once you launch your campaign, the clock starts ticking and you'll need deliver fast.

2. Determine which crowdfunding platform is right for your project.

There are four main types of crowdfunding platforms. Kickstarter and Indiegogo are rewards-based whereas platforms like GoFundMe are donation-based. More recently, equity, and debt based platforms like Houston's NextSeed have garnered attention from campaigners seeking alternative methods to raising funds and deferring payment.

Take the time to read about each type and contact each platform for specifics about how they will support your campaign during and after campaign. Indiegogo does a solid job of highlighting their partnerships with vendors that can assist you during different stages of your campaign; offering marketing promotion, direct links to manufacturing vendors, and additional funding options even after your campaign ends.

The next step to determining the right platform for your project is to search for similar "like" products. If you are launching the most revolutionary ear buds on the planet, then you want to ensure people are backing ear buds or similar product on the platform/s you are considering. A simple search on each site will pull up all ear bud projects to date. Then, you can quickly assess the patterns of the most successful vs. unsuccessful campaigns.

3. Launch the right campaign goal, with the right team, at the right time.

This is both important and hard to determine. Let's break it down.

The right campaign goal
The campaign goal is the total dollar amount you want to raise by the end of your campaign. The goal amount can be adjusted once on Kickstarter but I recommend that you keep it low — $5,000-$10,000 — to ensure you meet your goal within two days — three days max. Keep in mind you are competing with four to five thousand live projects at any given time. If you make your campaign goal, Kickstarter's algorithm pushes your project up the list and you have a good shot of being listed or even featured on the front page of Kickstarter's website. If you make your campaign goal too high and don't meet your goal with those couple days, Kickstarter's algorithm pushes your project down the list. If I recall, our campaign went from approximately 115 to 800 after day two. Each day that passes, your project is pushed even further down the list of over 4000 projects. What this means to your project is that unless you have a serious marketing engine behind you, no one will see your project outside of your immediate contact list or followers on social media. This is where hiring the right team of marketers and PR can be invaluable.

The right team
Think of the development of your crowdfunding campaign as a micro-enterprise site that requires the right mix of talent to build out. Funded startups with established teams and products in market, for instance, are launching on Kickstarter as a way to increase market awareness of their new products. For the boot-strapped startups with small teams, leverage your strengths and hire for gaps in skills to ensure you develop the right communications, pricing strategy, and overall layout of your page. To be clear, a production quality video is an absolute must.

The right time
Finally, consider the timing of your launch to align with complimentary events or holidays. If your product is focused on education/learning, the obvious timeframe would be to launch during back to school. Another way to galvanize your target audience is to identify popular conferences for your industry. For our campaign, we aligned with the Tech Disrupt conference in San Francisco and literally went live on Kickstarter directly from our exhibit booth!

While I can not make any guarantees for your campaign's success, I am confident that if you apply these tips, you will be that much closer to achieving your campaign goals.

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Yared Akalou is the founder of Houston-based Alcove.

innovative gifts

8 gift ideas from Houston startups

From after-alcohol relief to a smart pillbox, these Houston-founded companies have innovative holiday gifts to offer. Images via Instagram

It's holiday gift crunch time right about now, and whether you're scrambling for gifts or planning how you're going to treat yourself, Houston startups have innovative options for you.

All of the following gift ideas have a Houston tie, which makes for an extra special gift within a gift. While they are all available online, some might specify it's too late to ship by Christmas.

Here are eight ideas for gifts made by Houston startups.

A smart pillbox to make taking medicine cool

EllieGrid, the smart pillbox, makes it easier — and way cooler — to take your medicine. EllieGrid/Instagram

Never would you ever think to get a loved one a pillbox for Christmas — but EllieGrid is not your ordinary pillbox. The medical device has been completely reimagined by its Houston founders. The box, which is synced with a smartphone, will light up when it's time to take a dose. The lights indicate which compartment to pull from and how many pills to take. The app notifies you too, and, if you're gifting this to someone you want to stay on top of, you can actually opt in to receive the notifications and can be alerted if there's not compliance.

The box is available online for $149.

A personal, creative card that doubles as a work of art

tellinga

Tellinga creates artistic and personal cards for every occasion. Courtesy of Tellinga

There's giving a card, then there's doing even more than that. Houston-based Tellinga isn't just a maker of greeting cards; it's in the business of storytelling, and customers can have personalized artworks delivered right to their mailboxes — a site for reclaiming, founder Alex Kurkowski says, from the dread of bills and marketing materials.

"I'm trying to tap back into the tangible, physical and real side of life," Kurkowski says.

The cards begin at $9.99 and are perfect for reaching that loved one who you don't get to spend time with this holiday season.

A portable workspace for the friend on the go

Alcove

Alcove transforms from a laptop case to a private workspace in just a few moves. Courtesy of Alcove

It's a mobile world we're living in, but that does not mean you have to sacrifice comfort, design, and privacy. Houston-based Alcove has designed a solution in its laptop-carrier-turned-workspace. The item can convert into a productive work area in seconds — the wings pop out, the top lifts, and a kickstand holds the case upright while ergonomically holds up the laptop at a 40- to 45-degree angle. Founder Yared Akalou even consulted with an acoustic engineer to ensure the materials are optimized for users.

Alcove's items are available online in two colors in two sizes, starting at $49.

Skincare products from a Houston success story

drunk elephant

Houston-founded Drunk Elephant had a great year this year with a huge exit to an international company. Photo via drunkelephant.com

A couple months ago, a Houston skincare company was acquired in an international $845 million deal. So, while Drunk Elephant is far from just a local startup, you can give the gift of beauty this holiday season that is also a nod to a Houston success story.

Houstonian Tiffany Masterson, founder and chief creative officer, started the company in Houston in 2012. The quality of products and playful branding attracted a broad range of demographics as the company experienced exponential growth.

"I started this business as an industry outsider, and from the beginning I did things a little differently," Masterson says in a news release. "To join with a powerhouse beauty company such as Shiseido that leads the industry in innovation and global excellence is a dream come true for me and for Drunk Elephant. We share similar values, most importantly an unwavering commitment to the consumer. I chose a partner who will let the brand continue to be itself, with the same formulations and the same team."

Online, Drunk Elephant sells a few options for holiday gifts. The set pictured is on sale for $62.

An anti-stink workout shirt for the fitness freak

The perfect anti-stink workout wear is designed right here in Houston. Courtesy of Accel Lifestyle

Any devote workout fanatic deserves an opportunity to have workout clothes that don't smell up their entire laundry basket. Houston-based Accel Lifestyle, founded by chemist Megan Eddings, has a solution. The clothing is made with an anti-stink material created patented by Eddings. The pieces are also sustainably and ethically made in the United States. For every shirt bought, the company also plants five trees as a way of giving back.

Men and women's tops are available online in different styles from $59 to $89.

A creative cocktail that fizzes

What started as an idea to get her kids to drink more water has turned into a profitable party favor company. Courtesy of My Drink Bomb

The ability to make bar-quality cocktails at home has never been easier — or as fun — now that Houston-based My Drink Bomb is in business. The company, which has seen great success in the wedding favor industry, creates drink bombs that fizz like bath bombs that are packed with flavors and ingredients. All the user has to do is just add water and, if so inclined, their liquor of choice. Mocktails and kid-friendly options are available too.

The bombs are available online in two-packs for $12.50, but prices per bomb drop as you order larger packs.

A foolproof hangover cure

cheers

Cheers has a solution for after-alcohol recovery. Photo via Instagram/cheershealth

Hangovers are never fun and seem to just get worse as the years go by. Houston-based Cheers has created a suite of products that help you when you're in recovery mode. The key ingredient, Dihydromyricetin, a natural extract — like caffeine to coffee. This year, the company even has gift sets to choose from where you can even customize a message to your recipient.

The sets range from just $20 to $80, which includes all three products, and are available online.

Timeless table pieces for any occasion

rigby

This isn't your grandmother's tableware company. Courtesy of Rigby

A good tableware set comes into your life once in a lifetime — and usually that occasion is from a wedding registry. But a Houston entrepreneur wants to change that way of thinking. Sara Kelly created her direct-to-consumer tableware brand called Rigby, which features handcrafted stoneware dishes, glassware, and a flatware line.

"With Rigby I want to encourage individuals in all life stages to feel at home with the present," says Kelly in a news release. "You shouldn't feel like you have to wait for a big lifetime event, like getting married or buying a house, to purchase tableware and other items that make your time at home more enjoyable."

The products, which are sold in sets, range from $19 to $280. They are available online, as are gift card options.