SON OF A SAILOR // Indiegogo Debut!

The concept of crowdfunding as we know it is a relatively new one. We’re hearing names like Kickstarter and Indiegogo used more and more in the media, and most folks have a pretty good idea of how it works. Maybe they’ve supported a band via Indiegogo to release an EP or a designer friend hoping to launch a new line. Here at Son of a Sailor we have three days left of our own Indiegogo campaign.  Our goal is to provide sustainable employment for our team and support our first wholesale tradeshow we’ll be attending this month.

All that being said, for some people, the concept of donating to a business they aren’t personally connected to might seem a little foreign. We’ve found some fantastic articles that lay out the benefits and objectives of successful crowdfunding platforms. By now, just about any business concept has been funded, from cafes and arcades to a couple’s journey to have a baby through artificial insemination.

Why crowdsource? In this Inc. article, Indiegogo founder Slava Rubin eloquently lays out the “case for crowdfunding” and its benefits for American businesses. With economic growth lagging behind in recent years, a crowdfunding platform can provide desperately needed boosts for small businesses by allowing small funders to be apart of the action.

Last year President Obama signed into effect the JOBS act - a key law to allow crowdfunding investors to receive actual equity for their support, not just a reward or thank you (although for small funders, those rewards are still key!).

 Rubin explains the benefits of crowdfunding:

1 / Crowdfunded projects insists on transparency in a business. The public nature of a platform forces a business to provide clear answers.

2 / The campaign can provide marketing efforts naturally before the business even begins.

3 / The data collection “inherent to online activity” provides new business with critical information. With analytics systems and resources available, businesses can gain key insight into their customer base. 

(Video Credit: SXSW 2013 Panel) 

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