Crowdfunding delivers innovation but buyer beware

Apple Tay
5 May, 2015
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Crowdfunding innovative projects is a way for people with great ideas but limited funds to turn those ideas into tangible products.

Indiegogo presents people with the opportunity to turn their creative projects into products by raising money via online donations or pre-purchasing of products and experiences. They provide the option of Fixed Funding or Flexible Funding to its clients. Flexible Funding allows creators to keep the funds they have raised, for a 9% fee, even if the project is ultimately unsuccessful and project creators retain 100% control over their products and services.

As the crowdfunding market grows more creative products are expected to be introduced. However, there is a risk to it as not all projects make it.  For Indiegogo, statistics have shown that over 80% of all campaigns fail to start off. That being said, creators would still be held accountable for delivering all promised donation perks nonetheless. Crowdfunding sites take a cut of the funding that’s processed through their online platforms, and take no responsibility for the trustworthiness of the people seeking funds. So knowing if a project will succeed may take a leap of faith.

Here are a couple of Indiegogo campaigns that have grabbed our attention. But remember, only contribute if you’re confident the projects will succeed. And just because we’re writing about them here doesn’t mean we’re recommending you invest your money.

HiSmart: The First Smart, Convertible Urban Bag

HiSmart is a smart bag that syncs with your phone

The specially designed HiRemote syncs with the HiSmart app. The 2-in-1 customised chip inside the strap enables you to pin locations, find your HiSmart or phone, answer calls, listen to music, record your voice, and take selfies.

The cost of this bag is $219 and there are package deals available on Hi Smart’s indiegogo funding page.

Luna: Give your bed a brain

Luna is the world’s first mattress cover that makes any bed smart. It turns your regular bed into a smart bed that can intelligently manage the temperature and integrate with your smart home.

It can track the quality of your sleep including sleep phases, heart rate, and breathing rate, without you having to wear anything to bed. Luna combines this knowledge about your night with information about your day and uses those insights to recommend what works best for your sleep.

Luna learns your sleep habits and programs itself to create a personalised schedule for bed temperature adjustments, and continues to adapt to our changing life. Luna can be controlled from your smartphone or tablet from wherever you are. It uses 128-bit so comms between you and your bed are kept private.

Prices ranges depending on bed size between $235 – $265.

 

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