1. What could the twin sisters have done differently?

2. Should Hanson have targeted more than $10,000?

3. In both cases, were the financial results worth the effort?

4. What would you do differently if you were to run a crowdfunding campaign?

3. In both cases, were the financial results worth the effort?

In both the cases the net proceeds are much lower than the total amount raised. In the case of Enerchi
bites, amount raised is $9683 ($10,183-$500). Out of this there were total expenses of $5116 thus leaving
proceeds of $4566. These expenses including Kickstarter commission, amazon pay, video production and
social marketing company and rewards. These accounted for inefficiency as close to 40 % of expenditures
were on rewards fulfillment. The inefficiencies are further aggravated as the commission as well as
expenditures on rewards are also being cut out of the money given by the friends and families. Hence the
effort against the money raised was not worth it however it did help them to create the awareness of
their concept across a set of contributors as well as other participants on the kickstarters . But again these
were not the crowd who would primarily adopt the Enerchi Bites thus although it provided the marketing
buzz but did not eventually have confirmations on the right set of people hence the intangible benefits
out of the campaign are also not enough to offset the effort put in creating the video, getting the rewards
and fulfilling them inorder to get less than 50% capital against the amount raised. Moreover, the amount
finally gained by Enerchi bites would have been even lower if the video production had not been donated,
thus further reducing the returns against the efforts made to raise the capital.

This ratio of amount of capital actually gained by the founder vs amount raised is even more skewed in
the case of “think board” as out of $10,101 raised , there were expenses of $8542 , leading to net proceeds
of $1559, which make the actual capital raised mere 16% of the total raised amount . Thus the purpose of
raising the money is completely defeated as the effort and time of the entrepreneur spent may be utilized
more productively with other capital instruments including venture capital and debt if capital needs is the
major concern for converting an idea to a meaningful business. Here also Cost of goods sold / rewards
were close to $3780 while and inventory ($2000) and shipping ($2660) accounted for other major chunks
of capital spent out of contributor’s money. Although the amount contributed did not have a major share
of family and friends in this case , however the net capital raised was low and thus the effort made to
raise the capital is not worth it again .This effort may have some other intangible benefits like concept
test for the business from an unknown audience , might just act as a learning for improving the business
concept or product . Also it also leads to formation of a campaign which may be used later and thus in the
process there is some value creation which might go beyond just the crowd funding campaign.

4. What would you do differently if you were to run a crowdfunding campaign?( shout outs , rewards )

There are a few things that may be done to make the campaign more successful bpth financially as well
as to do gain learnings from it. To begin with, the story for the product should be developed and content
for the same in terms of picture collaterals and video must be created to support the pre , post and the
entire cycle of fund raising during the crowd funding. This would help gain the right traction and also
help the target people gain awareness. This awareness would help in increasing the demand and thus
expanding the scale.

Moreover I would recommend the product to family and aske them to give direct contribution instead
through a crowd funding campaign. However I would take help in sharing the created content . Also as
the visits of various people are tracked through analytics ( eg. Google analytics ) .

Also I would plan the post scaling plans ready andn make them a part ogf the video so that the investor
can gauge the potential of the idea.

As far as the video collateral are concerned, these are a long term investment which not only promotes
the company during the crowd funding but beyond that. And has value which may be used in future
campaigns . A good investment in video collaterals goes a long way in company overall success through
a series of funding campaigns in future too .Moreover it should be able to connect woth the right
segment through careful selection of social marketing campaigns in terms of both the target audience
and timing an frequency of promotion across various venues including viral video marketing which are a
very important factor for generating the response from the users. Moreover the collateral would
contain a request for sharing of the video if not supported through funding

Also for rewards format of the campaign getting the bulk deals for production of right number, size and
type of rewards based on response estimation along with contract’s for shipping thus optimizing
expenditure and saving the hard raised money . Moreover I would plan a buzz creation with a series of
funding and analyse the response of the first campaign on social medial and crowd funding campaign of
site like kickstarted to not only improve the online marketing but also to test the concept in terms of
number of visits, sharing of content , number of people who read the content choose not to respond or
response in terms of amount of funding , those who ignore collateral or those who supported it .Also
we can see the amount of time spent by user on videos , their nationality , interest in terms of sites
visited and other preferences to identify the prospective customer profile for fine-tuning any glitches in
the entire effort.

Moreover the amount to be raised should be based on the future plans of expansion and later
incorporate all the expenditure arrive at the figure rather calculation of amounts just on the historical
trends as posted on the website. it would help the campaign support the future activities in a more
sustainable manner financially
Launch …tell a story …in press and …ask the family to share rather than contributing on the kckstarter

Create a good amount content

Have in placebefore gaining the funds …..complexity scale

STP google analytics …….

Professional marketing…….

Collaboartors……..fuutre funding base ….create buzz in markeing

Social medial

Analyse the value of fund to be raised …….inorganic growth …………15 %were….family

Amoun d to be calculated not based 10000 past

Remove family fiends

Rewards deleivry ,,,easy to produce procure and ship…shipmemet should be lower lower volume and
contracts service provider…