Tag Archives: innovators

About Crowdfunding: Advice from the Experts and the Experienced

By Karen Utgoff

Courtesy of Wild Rumpus New Music Collective

Courtesy of Wild Rumpus New Music Collective

Crowdfunding is a tantalizing vehicle for overcoming the funding gap for a wide variety of endeavors including arts organizations, new products/services and entire companies. The Kauffman Foundation offers two highly informative videos that give the 50,000-foot summary as well as the view from the trenches.

The first video is 90-minutes long crowdfunding primer (you won’t miss a thing if you fast forward through the first 4 minutes and 30 seconds) and includes:

  • An overview of the crowdfunding space from Jase Wilson, founder of Neighbor.ly
  • The story of their successful Kickstarter campaign from Trellie co-founders Jason Reid and Claude Aldridge
  • Data-driven insights on Kickstarter project practices from Nate Allen, founder and CEO, at the data visualization studio 4 First Names

Key takeaways:

  • The money is a bonus. The opportunity to build awareness and visibility as well as to engage with fans and/or customers is equally or more valuable.
  • Effective marketing is crucial. You need a plan to bring the crowd to your project. It will be hard work.
  • Conducting a crowdfunding campaign will take more time and work than you expect.
  • Pick the platform based on your project, needs, and target crowd.
  • Be mindful of the work that will be required and costs that will be incurred to fulfill incentives, meet obligations, and communicate with backers if your campaign is successful.

The second video on “How to Raise $1 Million in 30 Days” features Indiegogo founder Slava Rubin. He describes elements that are believed to be important in building successful crowdfunding campaigns based on Indiegogo data.

(c) Copyright Sarah Concannon. All rights reserved. Used with permission.

(c) Copyright Sarah Concannon. All rights reserved. Used with permission.

I’m very appreciative that the Kauffman Foundation has posted both of these. They shed more light than heat on crowdfunding as a potentially valuable resource for bridging the funding and awareness gaps that so many emerging businesses, arts organizations and non-profits face. As such, they are must-see material for anyone considering going the crowdfunding route on the innovation trail.

Finally, a big shout out to two of my favorite Kickstarter campaigns:

Congratulations to both on their successful campaigns.

Gap Files 2

© Copyright 2014 Karen Utgoff. All rights reserved.

Navigating the Innovation Trail: Canyons, Chasms and Sinkholes! Oh My!

By Karen Utgoff

Death Valley (© Dan VanHassel. All rights reserved)

Death Valley (© Dan VanHassel. All rights reserved)

For both innovation-driven new ventures and intrapreneurs in well-established businesses, the road to new business success is frequently rocky and interrupted by gaps large and small. Often the team needs to build the road as it creates the product.  In addition to the significant canyons and chasms along the way, there are many smaller sinkholes that can swallow you and deceptively promising blind alleys that can take you off course. If you decide to blaze an innovation trail, here are some of the challenges you can expect to encounter.

Death Valley (© Dan VanHassel. All rights reserved)

Death Valley (© Dan VanHassel. All rights reserved)

The long, dry valley of death (pdf) between idea and fundable business is treacherous. Your team (and your idea) can die of thirst! Can you convince an angel, venture capitalist, funding agency, your company, or bank to invest, allocate, grant or lend your team what it needs? Can you make your current cash last long enough to see you through or are you counting on “rain” before your checking account runs dry? Be sure to consider carefully what you will need to make it across.

The labyrinth to the first customer is filled with blind alleys that can easily disorient even savvy navigators. Some will never find their way back to the main road. The biggest danger is potential customers who never say “no” but never decide to buy. The sale feels so close. You keep thinking one more meeting will do the trick, making all the time and effort you have invested suddenly worthwhile. It’s so hard to tell the difference between sincere interest from a future customer and someone who simply doesn’t want to offend by saying “no.”

The chasm between first customers and the main market was made famous by Geoffrey Moore in his landmark book Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers, which analyzed the challenges of growing beyond the first few, true-believing customers to achieve mass market adoption. It can be uncomfortable to move beyond your base of support but to achieve significant growth it must be done.

Cash flow sinkholes often develop on short notice. Even well-funded companies fall into them. There are many causes — for example, a new employee who isn’t productive or an unexpectedly problematic feature of the product — that can undermine your cash flow. It’s easy to spin your wheels in a futile effort to move forward but that only digs a deeper hole. The sooner you realize the underlying problem and fix it, the better.

The high growth grand prix comes just as you think you are home free. Suddenly your Gap Files 2business is growing faster than you thought possible and continuing to accelerate. You can’t take your eyes off the road for a second. Threats and opportunities are coming from all directions and with greater speed. You need to develop habits, processes, systems, and instincts to keep you alive and growing. The good news is that, for those who are brave and persistent enough to navigate through, success can be very sweet.

© Copyright 2013 Karen Utgoff. All rights reserved.

Nature and Nurture Make Innovators and Entrepreneurs

By Karen Utgoff

I am always perplexed by discussions of whether innovators and entrepreneurs are born to the roles (nature) or can be taught (nurture). Most complex capabilities are a mix of talent and learning the tools of the trade, and there is no particular reason to think innovation and entrepreneurship are exceptions. Some individuals with enormous potential never progress and others — seemingly less talented — get ahead by relentlessly pursuing goals and learning from experience. It’s a bit like learning a musical instrument; it’s great to have a good ear and nimble fingers but dedication and practice are essential.

The assumption that one either is or isn’t an innovator or entrepreneur from birth — you’ve either got it or you don’t — is dangerous in two ways. Those with an abundance of confidence in their innate abilities may believe that little or nothing need be done to improve, which can result in unnecessary risk and wasted effort. Those with great ideas, but little confidence, may forgo important opportunities.

This is especially unfortunate at a time when there is a refreshing expansion of programs and resources that support innovators and entrepreneurs in building upon their natural talents, often while developing a new venture.  Some of these are aimed at individuals who are considering starting an innovation-driven venture while others help teams already in the process of starting up or accelerating a new business.

It is easier than ever before for individuals with a great idea, substantial subject matter expertise and minimal business experience to learn the basics. In addition to local resources, intensive introductory courses are available through the Stanford Venture Lab or MIT Open Courseware for free. If you prefer a completely self-guided approach, here is a wonderful list of books (the Startup Nuts & Bolts section is a good starting point), many of which are also useful references for individuals and teams already in the trenches.

For hands-on programs, consider local and national accelerators and incubators that work with pre-venture and new venture teams. The iterative learning and doing that takes place in some of these is remarkable.  Here are three programs with which I have firsthand experience:

  • The National Science Foundation I-Corps program provides an intensive experience through which university-based teams learn new skills while exploring commercialization opportunities for a promising technology. As a mentor on one such team it was inspiring to share the experience with similar groups, all committed to improving their abilities as innovators and entrepreneurs.
  • The MassChallenge is an industry-agnostic accelerator program that draws new ventures to Boston (MA) for four intense months. The program includes exceptional office space, a wide array of seminars, ongoing mentoring, access to experts, and facilitated exposure to the Boston/Route 128 innovation ecosystem. I help out as a volunteer mentor.
  • The CleanTech Open is a sector-focused accelerator with regional programs together scale to a national program. I mentor for the Northeast CTO. Its decentralized structure allows it to serve the needs of innovators and entrepreneurs regardless of location while giving them access to specialized information and resources.

Of course, there are many other programs throughout the US and globally. Look for one that fits well with your situation and needs. Beyond such programs, seek out informal opportunities to learn as you make progress and build your network.

Innovation-driven entrepreneurs who are able to be constructively self-critical about their progress and skill sets relative to an objective framework are at a big advantage over the long-term. Having such a perspective allows for continuous improvement of themselves, their team, and their businesses. I will write more about this in a future post.