ENTRIES TAGGED "crowdfunding"

The crowdfunding conundrum

Miscalculating funding thresholds can sink your startup.

There is widespread consensus that crowdfunding is a boon, an egalitarian means for bringing products and services to market without relying on banks, venture capitalists, or established financial angels. Myriad platforms now allow entrepreneurs and folks with a little (or a lot) of cash to get together without the red tape and angst that so often accompanies the soliciting and procuring of startup funds.

But that doesn’t mean crowdfunding is a panacea. In fact, observes Scott Miller, CEO and co-founder of Dragon Innovation, Inc., crowdfunding platforms have an Achilles heel: an inability to deliver hardware.

“Over the past year or 18 months, we’ve seen a pretty disturbing trend in crowdfunding,” Miller says. “A lot of campaigns meet their thresholds, but they ultimately don’t deliver the goods. That’s usually not due to fraud — it’s largely because many of the people who launch these nascent companies don’t understand hardware. They may want to drive people to their campaign by posting a low threshold, or they may not understand the expense involved in getting a prototype to high-volume production, but in either event, they wind up with insufficient capital. So, when the time comes to actually manufacture their product, they don’t have enough money, and they can’t recover. Hundreds of millions of dollars have been lost as a result.” Read more…

Comments: 2
Four short links: 29 August 2013

Four short links: 29 August 2013

Semi-Structured Text, Bitcoin Built On, Cryptic C++, Kickstarter Wins

  1. textfsmPython module which implements a template based state machine for parsing semi-formatted text. Originally developed to allow programmatic access to information returned from the command line interface (CLI) of networking devices. TextFSM was developed internally at Google and released under the Apache 2.0 licence for the benefit of the wider community.
  2. The Money is in the Bitcoin Protocol (Vikram Kumar) — some of the basics in this post as well as how people are thinking about using the Bitcoin protocol to do some very innovative things. MUST. READ.
  3. Parsing C++ is Literally Undecidable — any system with enough moving parts will generate eddies of chaotic behaviour, where the interactions between the components are unpredictable. (via Pete Warden)
  4. Kickstarter Raises 6x Indiegogo Money (Medium) — a reminder of the importance of network effects. Crowdfunding is the online auction side of the 2010s.
Comment
Four short links: 9 May 2013

Four short links: 9 May 2013

Google Ingress, Micrometer 3D Printing, Design Thinking, and Tote Bags In The Cloud

  1. On Google’s Ingress Game (ReadWrite Web) — By rolling out Ingress to developers at I/O, Google hopes to show how mobile, location, multi-player and augmented reality functions can be integrated into developer application offerings. In that way, Ingress becomes a kind of “how-to” template to developers looking to create vibrant new offerings for Android games and apps. (via Mike Loukides)
  2. Nanoscribe Micro-3D Printerin contrast to stereolithography (SLA), the resolution is between 1 and 2 orders of magnitude higher: Feature sizes in the order of 1 µm and less are standard. (via BoingBoing)
  3. ThingpunkThe problem of the persistence of these traditional values is that they prevent us from addressing the most pressing design questions of the digital era: How can we create these forms of beauty and fulfill this promise of authenticity within the large and growing portions of our lives that are lived digitally? Or, conversely, can we learn to move past these older ideas of value, to embrace the transience and changeability offered by the digital as virtues in themselves? Thus far, instead of approaching these (extremely difficult) questions directly, traditional design thinking has lead us to avoid them by trying to make our digital things more like physical things (building in artificial scarcity, designing them skeumorphically, etc.) and by treating the digital as a supplemental add-on to primarily physical devices and experiences (the Internet of Things, digital fabrication).
  4. Kickstarter and NPRThe internet turns everything into public radio. There’s a truth here about audience-supported media and the kinds of money-extraction systems necessary to beat freeloading in a medium that makes money-collection hard and freeloading easy.
Comment

How crowdfunding and the JOBS Act will shape open source companies

New regulations could mark the end of proprietary finance.

Currently, anyone can crowdfund products, projectscauses, and sometimes debt. Current U.S. Securities and Exchange Commission (SEC) regulations make crowdfunding companies (i.e. selling stocks rather than products on crowdfund platforms) illegal. The only way to sell stocks to the public at large under the current law is through the heavily regulated Initial Public Offering (IPO) process.

The JOBS Act will soon change these rules. This will mean that platforms like Kickstarter will be able to sell shares in companies, assuming those companies follow certain strict rules. This change in finance law will enable open source companies to access capital and dominate the technology industry. This is the dawn of crowdfunded finance, and with it comes the dawn of open source technology everywhere.

The JOBS Act is already law, and it required the SEC to create specific rules by specific deadlines. The SEC is working on the rulemaking, but it has made it clear that given the complexity of this new finance structure, meeting the deadlines is not achievable. No one is happy with the delay but the rules should be done in late 2013 or early 2014.

When those rules are addressed, thousands of open source companies will use this financial instrument to create new types of enterprise open source software, hardware, and bioware. These companies will be comfortably funded by their open source communities. Unlike traditional venture-capital-backed companies, these new companies will narrowly focus on getting the technology right and putting their communities first. Eventually, I think these companies will make most proprietary software companies obsolete. Read more…

Comments: 15

Crowdfunding science

Micro-patronage could let researchers step around funding obstacles.

In our first science-as-a-service post, I highlighted some of the participants in the ecosystem. In this one, I want to share the changing face of funding.

Throughout the 20th century, most scientific research funding has come from one of two sources: government grants or private corporations. Government funding is often a function of the political and economic climate, so researchers who rely on it risk having to deal with funding cuts and delays. Those who are studying something truly innovative or risky often find it difficult to get funded at all. Corporate research is most often undertaken with an eye toward profit, so projects that are unlikely to produce a return on investment are often ignored or discarded.

If one looks to history, however, scientific research was originally funded by individual inventors and wealthy patrons. These patrons were frequently rewarded with effusive acknowledgements of their contributions; Galileo, for example, named the moons of Jupiter after the Medicis (though the names he chose ultimately did not stick).

There has been a resurgence of that model — though perhaps more democratic — in the modern concept of crowdfunding. Kickstarter, the most well-known of the crowdfunding startups, enables inventors, artists, and makers to source the funds they need for their projects by connecting to patrons on the platform. Contributors donate money to a project and are kept updated on its progress. Eventually, they may receive some sort of reward — a sticker acknowledging their participation or an example of the completed work. Scientists have begun to use the site, in many cases, to supplement their funding. Anyone can be a micro-patron!

Petridish.org screenshot - funded scientific project

Deceiving the Superorganism: Ant-Exploiting Beetles” met its goal through Petridish, a funding site.

Read more…

Comments: 4
Four short links: 1 November 2012

Four short links: 1 November 2012

Open Source Kickstarter, Long-Term Thinking, Inquiry Learning, and Progress Reports

  1. Selfstarter (Github) — open source roll-your-own crowdfunding platform. (Kickstarter has its own audience, of course, which why they could release their source-code and still be top of the heap)
  2. 100 Year Business Plan (Unlimited) — New Zealand Maori tribe has a 100-year business plan, reflecting their values of sustainability and continuity.
  3. Given Tablets, Kids Teach Themselves to Read (Mashable) — Story from two isolated rural villages with about 20 first-grade-aged children each, about 50 miles from Addis Ababa [...] Within four minutes, one kid not only opened the box, found the on-off switch … powered it up. Within five days, they were using 47 apps per child, per day. Within two weeks, they were singing ABC songs in the village, and within five months, they had hacked Android,” Negroponte said.
  4. snippets (Github) — mail out updates on coworker progress, a-la Google’s internal system. (via Pamela Fox)
Comment
Four short links: 21 September 2012

Four short links: 21 September 2012

Farm Servers, Federal GitHub Activity, Industrial Robots, and Crowdfunding Medical Appliances

  1. Business Intelligence on FarmsMachines keep track of all kinds of data about each cow, including the chemical properties of its milk, and flag when a particular cow is having problems or could be sick. The software can compare current data with historical patterns for the entire herd, and relate to weather conditions and other seasonal variations. Now a farmer can track his herd on his iPad without having to get out of bed, or even from another state. (via Slashdot)
  2. USAxGITHUB — monitor activity on all the US Federal Government’s github repositories. (via Sarah Milstein)
  3. Rethinking Robotics — $22k general purpose industrial robot. “‘It feels like a true Macintosh moment for the robot world,’ said Tony Fadell, the former Apple executive who oversaw the development of the iPod and the iPhone. Baxter will come equipped with a library of simple tasks, or behaviors — for example, a “common sense” capability to recognize it must have an object in its hand before it can move and release it.” (via David ten Have)
  4. Shift LabsShift Labs makes low-cost medical devices for resource-limited settings. [Crowd]Fund the manufacture and field testing of the Drip Clip [...] a replacement for expensive pumps that dose fluid from IV bags.
Comment
Four short links: 22 August 2012

Four short links: 22 August 2012

Minecraft Devastation, Constructive Dialog, Oatmeal Rocks, and Pwning Printers

  1. Minecraft Experiment Devolves into Devastating Resource War — life imitates art, but artificial life imitates, well, Haiti.
  2. Finding Unity in the Math WarsI recently heard a quote about constructive dialog: “Don’t argue the exact point a person made. Consider their position and respond to the best point they could have made.” I like this! (and the point that math teachers fighting with each other is missing an opportunity to fight for the existence of math education) (ps, “unity … math”, I see what you did there)
  3. Tesla Museum Funded — Matthew Inman, cartoonist behind The Oatmeal, used IndieGogo to raise over $850k to buy Tesla’s old building in New York and turn it into a museum. In five days. There are still 39 days to run. Impressive channeling of his audience for good.
  4. Printers Spontaneously Printing “SQL” Strings (Hacker News) — it’s a sign that someone’s scanning your network for vulnerable web apps, found the exposed printer port, and sent an malignant HTTP request to it.
Comment

With new maps and apps, the case for open transit gets stronger

OpenPlans looks to improve transportation infrastructure with open data and open source code.

OpenTripPlanner logoEarlier this year, the news broke that Apple would be dropping default support for transit in iOS 6. For people (like me) who use the iPhone to check transit routes and times when they travel, that would mean losing a key feature. It also has the potential to decrease the demand for open transit data from cities, which has open government advocates like Clay Johnson concerned about public transportation and iOS 6.

This summer, New York City-based non-profit Open Plans launched a Kickstarter campaign to fund a new iPhone transit app to fill in the gap.

“From the public perspective, this campaign is about putting an important feature back on the iPhone,” wrote Kevin Webb, a principal at Open Plans, via email. “But for those of us in the open government community, this is about demonstrating why open data matters. There’s no reason why important civic infrastructure should get bound up in a fight between Apple and Google. And in communities with public GTFS, it won’t.”

Open Plans already had a head start in creating a patch for the problem: they’ve been working with transit agencies over the past few years to build OpenTripPlanner, an open source application that uses open transit data to help citizens make transit decisions.

Read more…

Comments: 2
Four short links: 23 July 2012

Four short links: 23 July 2012

Drone Show, Ads, GitHub's Importance, and Crowdfunding Science

  1. Unmanned Systems North America 2012 — huge tradeshow for drones. (via Directions Magazine)
  2. On Thneeds and the Death of Display Ads (John Battelle) — the video interstitial. Once anathema to nearly every publisher on the planet, this full page unit is now standard on the New York Times, Wired, Forbes, and countless other publishing sites. And while audiences may balk at seeing a full-page video ad after clicking from a search engine or other referring agent, the fact is, skipping the ad is about as hard as turning the page in a magazine. And in magazines, full page ads work for marketers. If you’d raised a kid on AdBlocker, and then at age 15 she saw the ad-filled Internet for the first time, she’d think her browser had been taken over by malware. (via Tim Bray)
  3. The Most Important Social Network: GitHubI suspect that GitHub’s servers now contain the world’s largest corpus of commentary around intellectual production.
  4. Crowdfunded Genomics — a girl with a never-before-seen developmental disorder had her exome (the useful bits of DNA) sequenced, and a never-before-seen DNA mutation found. The money for it was raised by crowdfunding. (via Ed Yong)
Comment