I’ve been on calls and video shoots with three new projects we’ll be posting in January. One of the questions that comes up is how much money to ask for. We usually recommend a couple of things to think about:
- Our sweet spot is a range between $3000 and $15000
- Generally we recommend asking for the lesser amount- it is entirely possible to raise more than you ask for
- Decide how you are going to use the money and be specific: A prototype, more research, an early production run, a next generation version, etc.
- You can explain how you’d spend additional money if you get it: With $3000 we can take our current version and upgrade it to use cheaper parts. If we raise $6000 we’ll do that and build a test production run of twenty gizmos made for testing.
- It’s easier to raise money if you show the potential supporter that their contribution is going to result in measurable progress towards a usable product, service or device, etc.
These days the ability to make things at lower cost is a reality. Innovations like rapid prototyping, 3D printers, agile software development, minimal viable product, cloud access to tools and other often free resources mean you can change the world for a few dollars.
To see how far this can go, read about an entrepreneur that is funding six startups with $37.00 dollars each (that is not a typo). The 37 bucks gets you six months of server rental and a hot beverage. He has had hundreds of applications for the program!