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Four Considerations Before Launching a Crowdfunding Campaign
Crowdfunding can help hardware startups launch not only a product, but an entire company. The power of “the crowd” is strong and can be a great asset for entrepreneurs. However, by now we have all heard of those crowdfunding campaigns that make headlines, for all the wrong reasons—Coolest Cooler and Pebble stand out, both raised a considerable of money, but stumbled when it came to production manufacturing and order shipment. In order to avoid issues early-on, there are a few considerations to take into account before you launch that crowdfunding campaign.
Evaluate Your IP Exposure
Is there a business out there with a similar product? If so, how is yours different? “Start by reviewing any patents marked on similar competitive products, product packaging or your competitors’ web sites. If your product is similar to a specific competitor’s, you can search patents by owner of record. You can also search on Google for any patent-infringement lawsuits related to the same or similar products/services. (Entrepreneur)”
Do your due diligence and research patents that are similar to your product. You can be liable for patent infringement whether you knew about the patent or not.
Consider trademark and copyright protection for your product and startup as well. It is better to have your logo, tag line, text and photographs protected, than to risk someone else using them without your permission.
Decide If A Patent Is Necessary
Securing and protecting the intellectual property (IP) rights to your invention is key to successful commercialization. As soon as you make your crowdfunding campaign public, you forfeit your right to obtain a utility patent on that product unless you have previously filed a patent application. Costs can be an issue when it comes to filing a utility patent, however a provisional patent application is cheaper and still protects your invention. A provisional patent application will allow you to keep your rights to a utility patent for 12 months while you decide the next move for your startup. You will also be able to use the coveted, “patent pending” term as you market your product.
A design patent is another option if the value of your product lays largely in its unique design. This design patent can block competitors from making an exact copy of your product, but it doesn’t block them from making a functionally equivalent product with a different appearance.
Build A Functional Prototype
A functional prototype is necessary when you are trying to get people excited about a new product. While people can indeed envision a product from a great description, there is no substitute for the actual thing. This prototype not only shows potential investors what your product can do, it is also necessary for the marketing material on your crowdfunding page.
Develop A Video
Let’s face it, you can’t have an exciting video unless you have a functional prototype. The video portion of your page is where you let your product shine. You want to demonstrate your product to potential customers and let them get a feel for what it has to offer. The more descriptive and creative your video is, the more people are going to get truly excited to contribute to your campaign and share your campaign with friends.
While there are many moving parts to a crowdfunding campaign, these four considerations should be thoroughly reviewed by your team to set yourself up for success right from the start.
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3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.