There is an entrepreneur here in Des Moines that is using a social platform to raise funds for her startup company. Abbie Durkee’s company, My Alibi Clothing is currently raising funds using Kickstarter. Different from equity investing, social platforms like Kickstarter serve as a method of raising funds through donations / advanced selling of products or services. Take a look at Abbie’s Kickstarter page. You will see that you can contribute from as little as $8 to pretty much as much as you want. Each level has a “reward” for the contributor.
Besides raising money, there is another reason to use platforms like this. Putting your product on Kickstarter and then promoting the effort is a great way to test the market and to test your skills as a marketer. One example of this is the Tik-Tok+LunaTik watch project. This project started with a goal of raising $15,000. At the end of the project, they raised $942,578! That is a successful market test and a successful fund raise!
Check out the other projects at Kickstarter.
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