Can Crowdfunding Close The New Technology Funding Gap?

Monday, 03 December 2012 06:30
Blog author: 

Greetings!

Many promising new technology developers lack funds necessary to achieve commercial readiness. Crowd-funding platforms like Kickstarter have emerged to assist inventors and entrepreneurs, but they tend to focus on funding "products". Are there corresponding viable funding solutions for new technologies?

Curious to learn more? Read on, dear friends.

Can Crowdfunding Close The New Technology Funding Gap?

Let's start by accepting there are many scientists and technologists who have truly promising offerings with a strong and sound foundation. Further that these deserving technologies could benefit greatly from additional development funds. These monies could enable development completion or even to achieve commercialization stage readiness. 

Besides maxing out one's credit cards or being forced to tap the venture capital market (and their short-term payback orientation) do creative means exist to help underwrite new technology creation and development pursuits?

Could some form of crowd-funding be viable for new technology development? 

Some other people have apparently recognized this issue and raised this question. Some have even begun to address it by launching technology oriented crowd funding platforms, such as TechMoola, #SciFundChallenge, and FundaGeek. From TechMoola's website, according to one of its founders: "Unlike Kickstarter and other sites which feature "technology" but actually host design projects/products that mainly are additions/accessories to existing Apple products, we focus exclusively on novel, innovative, homegrown, American technologies." While Kickstarter's product-centric projects are more diverse than this description might suggest, their point is taken. Here's a further description from The Daily Crowdsource: http://dailycrowdsource.com/crowdsourcing/company-reviews/828-techmoola-crowdfunding-for-technological-innovation .

In visiting the TechMoola site, it appears that they feature products as well as technologies. Whether due to the relative "unsexiness" of technologies and products that are not consumer-focused, or the lack of broad site exposure, it appears from casual inspection that TechMoover investor participation rates are still fairly low. Still, TechMoola seems like a step in the right direction. Do any readers have any familiarity and or experience with TechMoola, or others such sites, including how successful they are?

Looking Ahead to 2013

2012 has been a productive one for BFS Innovations. We have provided our clients with technology scouting services, technology outlicensing, creative ideation services and external supplier sourcing and qualification support. As you focus on your plans for the coming year, I invite you to consider BFS as a prospective partner.

Call Michael at (614) 937-2408 today to discuss your upcoming needs and challenges.

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