New Report: Successful Crowdfunding Entrepreneurs Should Try Again

Kickstarter repeat crowdfunding campaigns
Statista

Pebble Watch, the cool smart watch that broke all kinds of records when it first launched its crowdfunding campaign on Kickstarter, is back. (Note: if you're new to the concept of crowdfunding, read all about Kickstarter)

And Pebble is breaking all kinds of records. Again.

It turns out that Pebble's repeat success isn't really that common and in fact, more entrepreneurs should be running multiple crowdfunding campaigns.

Research from a new report on crowdfunding

The Wall Street Journal wrote recently on some new research that shows successful crowdfunding entrepreneurs have almost twice the chance of success of running a future crowdfunding campaign than other newbies.

On average, people raising money on the site for projects are successful in meeting their goals 38% of the time, according to Kickstarter. But new data show that those with one successful project under their belts have nearly double the chances of success—73%—of reaching their next funding goal. And those with five projects have a 91% likelihood, according to the six-year-old site.

                                                              -- Wall Street Journal

Pebble turned to crowdfunding when fundraising efforts from more traditional sources didn't come through. Pebble was a crowdfunding mega success, raising about $10 million during its first campaign and $20 million from its second.

Other multiple crowdfunding successes

There's another WSJ article published earlier this year that describes another crowdfunding success story that includes successful follow-on campaigns:

TrackR Inc., founded by University of California, Santa Barbara engineering students Chris Herbert and Christian Smith, raised $47,915 from 1,091 supporters on Indiegogo in February 2013. The 30-day campaign, which had an initial goal of $5,000, sought funding to develop a credit-card size device that tracks lost wallets using a smartphone. They dubbed it Wallet TrackR, and offered preorders to backers as an incentive.

...Messrs. Herbert and Smith returned to Indiegogo two months later, this time raising $352,378, from 1,312 backers, for a tracking “sticker” that could be placed on purses, keys and other items.

Why brands like Pebble come back to crowdfunding

It's hard to argue with this type of success. But why would Pebble -- which raised upwards of $10 million during its first crowdfunding campaign -- feel the need to go back to the well to raise more money?

An article in The Guardian explains that for successful crowdfunding brands like Pebble, coming back to crowdfunding just makes a heck of a lot of sense. The company already had a built-in audience of backers excited about its products, making Kickstarter the most obvious place to launch a new product.

“We have a new product that we’re launching. We’ve worked on it for over a year, we already have a million people who’ve bought Pebble in the last two years. And what are the ways you can launch a product? You can go to Best Buy, and have people line up; you could sell it on your website. But we knew that we’re going up against a gigantic competitor, Apple.

“How do small companies compete? They go to the people that love them the most. And in our case, that’s Kickstarter.”

Crowdfunding the way Pebble does it is so much more than just another way to finance a business. It's a way to get excited, interested people involved and participating in the launch of new ideas and products.

For that, it's worth coming back time and time again.

If you're thinking about running your own crowdfunding campaign, check out our top resources for running a successful crowdfunding campaign.