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Crowdfunding Campaign a Success Despite Falling Short of Goal
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editorial

Crowdfunding Campaign a Success Despite Falling Short of Goal

One crowdfunding benefit that’s cited often is crowd validation. A successful campaign that generates buzz and builds an audience not only proves the concept to the entrepreneur behind the campaign, it also makes investors’ jobs easier.

After all, a company or project that has already experienced success, however small, and managed to generate income in the form of pre-sales is a safer investment than one whose concept is untested. Mark Cuban, in fact, has said that crowdfunding should be a requirement for every startup. 

One recent crowdfunding campaign showed, however, that even a not-so-successful campaign can still gain enough traction to convince an investor to support a company.

That’s what happened to Oogave, a soft drinks company based in Denver. Oogave first came to be in 2005, when Esteban Anson decided to offer a quality, organic soft drink in his restaurant that didn't contain processed sugar or high fructose corn syrup. The soda, which is sweetened with agave nectar, proved popular with his patrons, and Anson decided to expand operations in 2009.

Oogave has been well-received, appearing in stores and restaurants nation-wide. This is especially impressive considering its competition – the company claims that Pepsi and Coca Cola each sell as much pop in 20 seconds as Oogave sells in a year. But, nearly four years on, the company ran into financial difficulties and decided to crowdfund in order to keep operations running.

The soda company’s co-founders launched a flexible funding campaign on Indiegogo with an ambitious goal of $500,000 (to date, only seven projects have raised over half million dollars on the crowdfunding platform).

The campaign raised only $10,000, which Oogave will receive because its founders chose the ‘keep it all’ option. But that probably won’t keep the company afloat for too long.

What could help Oogave survive, however, is a bridge loan that the company was able to secure thanks to the publicity generated by the crowdfunding campaign.

“Part of the crowdfunding campaign is just to get the word out about Oogave, and we do have some other options that are coming through as a result of the campaign,” the company’s co-founder Gannon Merrell said in an interview with a local news station

The short-term loan, Merrell predicts, should help the company get to positive cash flow by the end of the year. In the campaign video, Merrell and Anson predict the company to become profitable in around 18-24 months.

Despite not meeting the campaign goal, Merrell is bullish on crowdfunding.

“[Crowdfunding] is definitely a laborious, time-intensive process,” Merrell said. “However, I think it’s a great opportunity to raise funds for your company and help yourself grow.”

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  • Guest Vincent Purino Mar 12, 2013 05:55 pm GMT

    Hi Crowdsourcing,

    We thought this might be a good story for your blog:

    original Nov press release:  http://www.aquaovo.com/Press-Release_AlterEgo.pdf

     -  Alter Ego is a high tech portable , on demand, water filter capable of eliminating, chlorine, heavy metals, pharmaceutical residues, bacteria and other toxic contaminants.  Ideal for travellers going abroad where water sources are questionable.  Ideal for urbanites sensitive to plastic water bottle waste and tap water contaminants.
     - Aquaovo has succeeded in raising funds to launch a stylish portable water filtration bottle through the international crowd funding platform Indiegogo.com.
     - Aquaovo's goal was to raise $45,000 to launch the Alter Ego.  They have raised over $80,000 exceeding their goal by 78% by pre-selling over 1850 units 
     - Aquaovo's Alter Ego campaign success puts it the project in the top 5% of successful  projects in terms of funds raised on the Indiegogo platform
     -  Funds from each Alter Ego sold will go towards helping sustainable water charities - over 300 Guatemalans will have benefited from a clean water for life program from the launch campaign which ends at the end of March

    project video:  http://igg.me/p/321006/x/1758750






    If you are interested in writing on this story , don't hesitate to call me with any questions.

    Thanks for checking us out!
    Vince

  • Archenette Evangelio Archenette Evangelio Mar 15, 2013 12:56 am GMT

    Hi Vincent,

    Thank you for introducing your project. Please know that you can upload your project's press release, articles, videos and the like. You just need to sign up on the site and then you're free to upload your own content items.

    Looking forward to seeing you join and participate...

    Archenette
    Community Manager, Crowdsourcing.org

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