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We did a bunch of that stuff to maximize how many people we told about it.”Įstablished companies also are dabbling with crowdfunding as a go-to-market strategy. “Your network, your email list, your friends and family, if you can get any articles written about you or influencers posting about it. We had consulted with a lot of other brands … two other entrepreneurs who had done it before us … they said you’ll get a little traffic within Kickstarter, but you need to find a way to bring people in. “It’s much trickier to get people to actually come to your listing. “It’s pretty easy to make a campaign,” Mr. Rewards offered included bags of the product and T-shirts. As we were in this pause while we were expanding capacity, we thought, what can we do to generate buzz and sales? That’s why we went to Kickstarter.”Ī total of 1,585 backers pledged $71,786 to Quevos’ Kickstarter campaign, surpassing the initial goal of $10,000 in two hours.
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“We knew we needed a few months to install a few pieces of equipment and build out our production space. We’d been able to produce 10,000 bags a month, and we wanted to scale and make closer to 100,000 a month. “We’re in a pretty unique situation where we make the product ourselves because our process is unique. “We had a little bit of capital, we had improved our product and formula from the test, and now we needed to scale up our manufacturing,” he said. The prior year, Quevos had raised a total of $65,000 through participation in a business contest at the University of Chicago and the Kraft Heinz Co. Hamburger and co-founder Zack Scheier prepared to expand production of the snacks following a brief market test.
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The product was presented in a Kickstarter campaign last year as Mr. His business Quevos manufactures egg white crisps featuring flavors such as cheddar, sweet barbecue and sour cream and onion. “I think some brands that are later-stage that aren’t launching but are just trying to survive if the venture capital climate dries up might turn to some of those equity sites.” “Folks are going to be turning to not only Kickstarter but some of the more equity-focused platforms,” he said. More emerging brands may consider crowdfunding in the coming months as traditional fundraising options dwindle in a post-pandemic environment, said Nick Hamburger, co-founder of Quevos, a Chicago-area snack company. A regulatory framework was established for startups and small businesses to raise capital through crowdfunding under the Jumpstart Our Business Startups Act (JOBS Act) enacted in 2012. Through the equity crowdfunding model, founders on such platforms as StartEngine and Republic sell ownership stakes to investors. Kickstarter and Indiegogo are examples of rewards-based crowdfunding sites, providing perks to contributors in exchange for money. Startups may validate businesses and products, grow brand awareness and gain a loyal following of early adopters and advocates.
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More than moneyĬrowdfunding offers benefits beyond traditional fundraising.
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“We offered our backers a variety of rewards, lots of bags of Rule Breaker Bites, depending on how much they pledged, as well as rewards featuring our grab-and-go products that were already on the market,” Ms. By the end of the three-week period, a total of 403 backers had pledged $28,403 to support the production of Rule Breaker Bites. Rule Breaker Snacks initiated the campaign with a goal of $10,000, “which we reached in under three hours,” Ms. So, I looked at it as more of a marketing effort to generate buzz for free.” “But by the time you fulfill the rewards and pay Kickstarter their fee, you don’t get to keep most of the cash. “We definitely needed the money to help launch a new line,” Ms. The company created a Kickstarter campaign last March to develop and commercialize a new line of bite-size treats, formulated with ingredients such as chickpeas and dates.
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Rule Breaker Snacks produces vegan, gluten-free packaged brownies and blondies.