Technology gadget makers are increasingly turning to crowdsourcing rather than venture capitalists to finance their inventions. Typically, inventors or innovators describe their gadget or idea online at a crowdsourcing website—such as Kickstarter, Crowdtilt, and Gambitious—and explain how much capital they need. In return for a Kickstarter pledge, for example, the donor gets one of the first items or a special package of bundled products. Kickstarter keeps 5 percent of the donated amount. Only those projects that meet or exceed their goal are funded. Pebble Technology, developer of the Pebble E-Paper Watch, raised $7.1 million in crowdsourced funding via Kickstarter, and reached its goal of $100,000 within two hours of posting its project.
(The New York Times)(Fast Company)(Engadget)(Kickstarter)