Just Google “crowdfunding” and you will be rewarded with hours of entertainment. Main Street’s attempt at bargain investment opportunities held exclusively for years by Wall Street, “accredited investors,” and venture capital firms has taken flight in a big way. The impact to innovation is immeasurable.
Med City News reports that the new kid on the block is Christie Street, which focuses on products – gadgets if you will – rather than novelties, services, or other Kickstarter-like opportunities. In a very short time, they have already demonstrated success. What is also unique about the site is their claim that their processes also protect buyers; according to the lead inventor, James Siminoff, they weed out about 90% of the products that apply for funding status.
Since Kickstarter and other sites have become mainstream, we have questioned whether success or failure of the website funding opportunity validates – or kills – the innovation. Although not yet determinable in those models, clearly it appears that success at Christie Street would lead to validating the products potential.
And no, there is absolutely nothing wrong with Kickstarter. The website has been wildly successful, and Crowdfunding by its nature is a Disruptive Technology. Along the same lines as true product/service investments like Kickstarter and Christie Street is SoMoLend, which reduces the risk of direct investment by using a financing structure.
Innovation is everywhere, and crowdfunding gives the average Joe or Mary an opportunity to be part of something special.
You can contact our Life Sciences & Innovation Group by leaving a message below or by calling 440-449-6800.