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Direct to consumer online sales have helped a number of female-focused startups get products to market in recent years — often pitching better designed and generally more thoughtful feminine hygiene products than mainstream staples.
The lack of innovation in the mainstream market for feminine hygiene has certainly created a gap for startups to address. Examples in recent years include companies like Thinx (absorbent panties for menstruation) and Flex (a disc-shaped tampon alternative for wearing during sex). Or Daye — which makes CBD tampons for simultaneously treating period cramps.
Even so, there still hasn’t been a critical mass of product innovation in the category — to the point where alternatives can trickle down (no pun intended) and influence the trajectory of the mainstream market. The core products on shelves are, all too often, depressingly familiar — disposable pads and tampons — even if they may (sometimes) now be made of organic cotton or have some other mild design tweaks.
The most notable change to the available product mix is probably period pants — which have recently started to appear on mainstream shop shelves and seem to be selling well in markets like the U.K., as The Guardian reported recently.
In the average drug store, the other non-disposable alternative you’ll most likely see is the menstrual cup. Which is not at all new — but has finally got traction beyond its original (very) niche community of users, which is another signal that consumers are more open to trying different solutions to deal with their monthly bleeding versus the same old throwaway wadding.
While free bleeding — an old movement which has also seen a bit of wider pickup in recent years — can also be seen, at least in part, as a protest against the poor quality of mainstream products for periods.
All of which makes this forthcoming product launch rather interesting: Meet LastPad, a reusable (rather than disposable) sanitary towel.
Image Credits: LastPad
The first thing you’ll likely notice is that the pad is black in color — which certainly rings the changes versus the usual white stick-on fodder. The company behind LastPad says it worked with an unnamed “luxury lingerie manufacture” on look and feel — and, well, judging by the product shots alone it shows.
The bigger behind-the-scenes change is that it’s been designed for sustained, repeat usage. So each LastPad comes with its own fabric pouch (in a range of colors) for folding up and storing after use (and until you get a chance to pop it in the wash). The pad can also stay in its pouch for washing so there’s no need for additional handling until you’re getting it out of the washing machine to dry.
LastPad is the brainchild of Danish designer and entrepreneur Isabel Aagaard, whose company LastObject has — for the past three years — been taking aim at the wastefulness of single-use hygiene and beauty products, designing reusable alternatives for what are unlovely but practical items — like Q-Tips and tissues*.
In total, LastObject has sold around 1.5 million products so far — across its existing range of beauty, hygiene and travel-focused items. But LastPad marks its first push into a really female-focused product category.
A reusable (washable) sanitary pad is clearly a big step up on the design challenge front versus making reusable (silicone) Q-Tips or (cotton) tissues or makeup rounds — because of the complexity involved with designing a wearable, intimate hygiene product that can handle the variable and often messy nature of periods, and keep doing so, use after use.
It needs to be both comfortable and reliable — as so many disposable pads actually aren’t.
So it’s not too surprising that, per Aagaard, the company has been working on designing and prototyping LastPad for two years. Now they’re finally ready to bring it to market — launching the LastPad on Kickstarter today — with a goal of shipping to early backers next February.
“We’re seeing amazing conversions [for the LastPad pre-campaign],” she says, discussing how much demand they’re expecting. “This is our sixth [crowdfunder] campaign — and it’s looking really good. So I think the demand is bigger than I actually imagined. Because this is also the first product that is only for women. And we were very much in doubt that we should put it on Kickstarter because it’s a very male-dominated platform but it’s looking really positive.”
“We already started working on this two years ago so it’s really been a process. And also because we wanted it to be really innovative. Because right now you can see on the market there’ll be pads that are more like home sewn or do it yourself — and we wanted to really make an exclusive, very, very innovative version of that — that has a lot of the benefits that the single-use version has.”
Image Credits: LastPad
Each LastPad is made up of three layers: A woven top to help keep the pad feeling dry against the skin by quickly funnelling menstrual fluids down into — layer two — a central absorbent section (made of bamboo) — which sits above a TPU base to ensure no risk of leaks.
“The first layer is a woven material that is really, really fine — it has a little bit of silver in it so that the odours will disappear. It’s also woven with small funnels so that the blood disappears very quickly into the middle layer — because it’s so important that you’re not like wet. Because that’s awful. So it dries quite quickly when you’re wearing it,” explains Aagaard. “And then the middle layer is 100% bamboo — it’s absorbent like crazy; 40% more absorbent than, for example, cotton. And it also has anti-bacterial properties. And then the bottom layer is a TPU [Thermoplastic Polyurethane] — which is just a leakproof cover; it’s comfortable, it’s not like a plastic bag but it does make sure that you cannot bleed through it.”
While disposable sanitary towels rely on an adhesive layer to enable the consumer fix the pad to their panties, LastPad has to do that a bit differently too given it’ll be going through the wash. So the pads have wings — which wrap around the gusset of the panties and fix together underneath with a (soft) Velcro fastening.
That’s not all: There’s a (sticky) silicone strip running around the back side of the pad which helps prevent it from moving around — and, per Aagaard, will happily survive repeat washing (in fact if it’s not used for a time, she says dust may temporarily reduce the stickiness — but says that immediately resolves just by wetting it again).
“Where I felt that we really made a huge difference is that on the back side of the pad — it has wings [with] a Velcro [fastener] that’s completely soft and you don’t feel it; even if you’re biking — that was like the big test — and then it has a silicone strip in the back and at the bottom, like a sticky silicone… so it doesn’t move around in your pants.”
Practically speaking, it won’t be possible for a LastPad user to use just one LastPad to see them through their period — given the need to wash and dry them between uses. So a pack of several reusable pads will be necessary to entirely replace disposable pads and ensure there’s always a clean towel available to swap out the used pad.
But LastObject’s idea is, much like you own several pairs of socks and briefs, you’ll have a set of LastPads to see you through until after laundry day.
The product comes in three different sizes and thicknesses to cater to different flow levels, too. So the consumer may end up owning a range of reusable LastPads — from a panty liner option to a day flow and heavier-duty night pads.
Image Credits: LastPad
“It wasn’t as simple as I thought it was going to be — but that’s also because you have to understand the viscoses of blood, for example, compared to water,” Aagaard tells TechCrunch. “And also a flow — it’s not just blood. There’s a lot of other stuff that come out. So it’s taking all of these things into consideration.”
“We’ve been testing it for so long,” she goes on. “That was our main thing with this product. A lot of the other [LastObject products] were very much about printing it, looking at it. Using it of course — but it took us long before we had it in actually a silicone form. Because that is also expensive. Whereas [LastPad] we could sew quite quickly just here at the office and [test it]… So we’ve just been testing it constantly — how’s the feeling? Getting it out to a lot of different women that wear different panties that have different cycles. So it’s really been about testing.”
Pricing for LastPad will be around $60 for three pads — so around $20 per pad. Which is obviously a lot more expensive than the per unit cost of disposable towels. But LastObject says it will offer packs so if a consumer buys more pads it should shrink the per pad cost a little.
Aagaard says the product has been tested to withstand at least 240 washes — which she suggests will mean it’s able to last at least a couple of years, saving likely hundreds of disposable pads from being consumed in its stead.
Although it’s maybe less likely to save consumers money — depending on which disposable pads you’d buy and how many you’d used per cycle (basic disposable pads can cost as little as ~20c each) — as LastObject recommends owning nine of its LastPads which could cost around $80 or more). But the target user is evidently someone with enough disposable income to be able to pay a premium for an eco alternative.
Given the price-point, it does also look more expensive than the menstrual cup — an existing and highly practical alternative to disposable menstrual products — which can cost around $30 (for one reusable cup; and you can get away with owning just one) and, typically, a cup will also last for years as it’s made of silicone.
However the menstrual cup won’t suit every woman — and does require access to clean water to rinse and sanitize — so having more non-disposable alternatives for periods is great.
Aagaard says she’s a fan of the menstrual cup but suggests LastPad can still be useful for its users as a back-up to catch any leaks and/or provide an added layer of reassurance.
While, with period pants, she says the issue she finds unpleasant is the feeling of wetness when wearing them.
On LastPad’s environmental credentials, the washing process required to keep reusing the pad does obviously require some resources (water, soap etc.) but — as is the case with other LastObject products — the company’s claim is that it’s still substantially greener to wash and reuse its non-disposable products versus consuming and binning single-use items that have to be continually produced and shipped out (generating ongoing CO2). Such products can also pollute the environment after they’ve been thrown away — and plastic waste is of course a huge global problem (including from thrown-away sanitary products).
LastObject will be publishing a third-party LCA (lifecycle assessment) for LastPad to back up its eco claims for the reusable product — comparing it to using disposable sanitary pads. But Aagaard is confident it will be substantially better when compared against most disposable alternatives.
“You’ll be putting a wash on anyway; [LastPads] don’t take up that much space; you’re not going to wash them just them; it is with your other laundry; and if you wash them at a cold wash I think that the LCA report will look really good,” she suggests when we ask about the eco credentials.
“We’re doing this with all our products where we’re taking them through a third party who’s testing everything and putting them up against [alternatives] and having these considerations with CO2, with water, with chemicals — with the whole pack… So we’ll be doing that more specifically; right now… the alternative of a [disposable] pad — they are so differently produced. It’s crazy. So I could say the worst [for comparative purposes] or I could say the best — and ours is about 12x better than that.”
“When we got the LCA report for the LastTissue and LastSwab they were so much better than I have imagined,” she adds.
From this year the European Union has started banning the sale of some single-use plastic items (such as Q-tips and disposable cutlery) as reducing plastic waste is one of the goals for regional lawmakers. And — globally — regulators are increasingly looking for quick wins to shrink the environmental impact of the fast moving consumer goods market’s long standing love affair with plastic.
But some disposable product categories are simply more essential than others — which makes it hard for lawmakers to just ban plenty of wasteful, polluting products. So developing innovative, reusable alternatives is one way to help lighten the usage load.
“The most sustainable pad that you can ever have is actually the one that you don’t produce but that would just be free bleeding — and I think that 99% of women are not ready for that,” adds Aagaard. “So can we make some solutions on some of the things that we actually have to take care of?”
While LastObject is sticking with Kickstarter to get LastPad to market, Aagaard confirms that once they see how much early adopter demand it’s getting they plan to produce enough to also sell via some of the other outlets where they currently sell their products — such as e-commerce sites like Amazon and of course their own web shop.
So far, the U.S. has been the main market for LastObject’s reusable wares, per Aagaard — which she attributes to mostly using Kickstarter to build a community of users. But she adds that the company is starting to see more traction in Europe as it’s increased the number of regional distributors it works with.
So what’s next for the company after LastPad? The product direction they’ll take is an active discussion, she says.
“We can keep going the beauty way, we can go more personal care but we have to also [not] go in too many directions. I personally have a lot of fun things I want to do in the bathroom still, because I feel like it’s a space where not a lot of designers have actually really been investigating some of the products that we’re using. Both in beauty but also in personal care. Like in the floss and toothbrush but also in diapers and wipes and all of that. So I think that there’s some innovation that could be really fun. But… this one took two years and I’m so happy about the result and I couldn’t have spent two months less on it. Then we wouldn’t have had the solutions that we’ve gotten to. So that feels very important.”
Image Credits: LastPad
*Washable tissues are also of course not new. Indeed, Wikipedia credits the invention of pocket squares to wipe the nose to King Richard II of England who reigned in the 14th century. But the traditional (fabric) handkerchief — which was used, laundered and reused — became yet another casualty of the switch to single-use, disposable, cheap consumer goods that’s since been shown to have such high environmental costs. So perhaps reversing this damaging default will bring more ‘historical product innovation’ back into fashion as societies look to apply a modern ‘circular economy’ lens.
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Before you hire a marketing consultant who doesn’t understand your products or commit to a CMO who has several years of experience — but none in your sector — consider influencer marketing.
If the phrase evokes images of celebrities hawking hard seltzer, think again: An influencer can be as humble as an enthusiastic Reddit user who manages your Telegram channel.
According to Uber growth marketing manager Jonathan Martinez:
“ … You don’t need to find influencers with millions of followers. Instead, lean toward microinfluencers for testing, which will bring cost efficiency and the ability to sponsor a diverse range of people.”
If your startup has a clear brand pitch, “an enticing offer” and “clear next steps,” you’re ready to reach out to influencers, he says.
In a guest post, Martinez explains how to structure offers that will maximize conversions and keep your representatives motivated to promote your products and services.
Full Extra Crunch articles are only available to members.
Use discount code ECFriday to save 20% off a one- or two-year subscription.
Image Credits: Julian Shapiro
This morning, we published an interview with growth expert Julian Shapiro, a founder and angel investor who also advises startups on the best way to present themselves.
Marketing is data-driven, but good storytelling is an art, says Shapiro.
To connect with consumers on an emotional level, “you need a mix of goodwill, what-we-stand-for ideology, social prestige and customer delight — among other affinity-building ingredients.”
Thanks very much for reading Extra Crunch this week!
Walter Thompson
Senior Editor, TechCrunch
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“In celebration of Coinbase’s earnings report today, investors poured a mountain of cash into one of the company’s global competitors,” Alex Wilhelm writes in The Exchange.
Rolling up his sleeves, he dug into numbers from Coinbase, FalconX and FTX to give readers some perspective on the state of cryptocurrency exchanges.
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Companies that have reached $5 million to $10 million in annual revenue are more likely to assemble growth teams; it’s a smart investment for any startup that’s achieved product-market fit.
It can also be potentially disruptive: Early marketing and product managers may feel sidelined by new cross-functional teams that suddenly take a leadership role.
In a detailed walkthrough, senior director of growth at OpenView Sam Richard explains the core players needed to build a growth team and how to integrate them into the organization smoothly, and shares some useful experiments to run.
“Don’t expect a single hire to scratch the growth itch for you,” Richard warns.
“A brilliant hire is going to come up with ideas, but will absolutely need a team to support them, turn them into experiments and then make them a reality.”
Image Credits: Bryce Durbin
In an interview with Brian Heater, Indiegogo CEO Andy Yang spoke about how the pandemic has impacted the crowdfunding platform, the challenges of stepping into the role after the previous CEO departed, and how the company reached profitability.
The company wasn’t profitable when you joined?
We weren’t profitable. I joined and then we cut to profitability, or at least kind of a neutral state, and with any kind of change in leadership, some tenured folks opted out, and we basically became a new team overnight to kind of re-found the company, and we’ve been slowly adding people over the last couple years, but always with that eye on profitability and controlling our own destiny.
Image Credits: Bryce Durbin
Last week, Kickstarter announced that people have backed more than 200,000 projects with $6 billion in pledges since the company launched in 2009. Just 15 months ago, it crossed the $5 billion threshold.
Brian Heater spoke to CEO Aziz Hasan, who took over in 2019, about last year’s substantial of layoffs, the pandemic’s long-term impact on crowdfunding, and how he’s working to build a more resilient company:
I think for us some of the most important things are to really just understand how we’re operating the business, making sure that we are sufficient in the buffer that we have for the business to make sure that we’re operating in a way that we can feel confident that the team is going to have some stability, that they’re going to have this resilience.

We frequently run articles with advice for founders who are working on pitch decks. It’s a fundamental step in every startup’s journey, and there are myriad ways to approach the task.
Michelle Davey of telehealth staffing and services company Wheel and Jordan Nof of Tusk Venture Partners appeared on Extra Crunch Live recently to analyze Wheel’s Series A pitch.
Nof said entrepreneurs should candidly explain to potential investors what they’ll need to believe to back their startup.
” … It takes a lot of guesswork out of the equation for the investor and it reorients them to focus on the right problem set that you’re solving,” he said.
“You get this one shot to kind of influence what they think they need to believe to get an investment here … if you don’t do that … we could get pretty off base.”
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Going up against global e-commerce behemoth Amazon might seem futile, but smaller players can leverage value adds that give them a leg up when it comes to ensuring a loyal customer base, says Kenny Small, vice president SAP and Enterprise at Qualitest Group.
“The reality is that Amazon’s true unique selling proposition is its distribution network,” he writes in a guest post. “Online retailers will not be able to compete on this point because Amazon’s distribution network is so fast.
“Instead, it’s important to focus on areas where they can excel — without having to become a third-party seller on Amazon’s platform.”
Image Credits: Nigel Sussman (opens in a new window)
Edtech and fintech have been in the Chinese Communist Party crosshairs in recent weeks — now, chat apps and gaming are among the targets.
Beijing filed a civil suit against Tencent over claims that its WeChat Youth Mode flouts laws protecting minors, and state media criticized the gaming industry as the digital equivalent of passing out drugs to kids, Alex Wilhelm writes in The Exchange.
He writes that the “news appears to indicate that we should expect more of the same as we’ve seen in recent months from the Chinese government: More complaints about the impact of ‘excessive’ capital in its industries, more tumbling share prices and more held IPOs.”
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In an increasingly on-demand world, shipping delays and disruptions are a major roadblock to customer happiness.
AI can help, says Ahmer Inam, chief artificial intelligence officer at Pactera EDGE, who offers five strategies for using AI that can help startups understand supply chain disruptions and prepare for a Plan B.
“While AI won’t protect startups, manufacturers and retailers from these types of disruptions in the future, it can help them sense, anticipate, reroute and respond to them more effectively.”
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According to one estimate, Americans call 911 about 240 million times every year.
Sending emergency services to the right location sounds straightforward, but each 911 call is routed through one of thousands of call centers known as public safety answering points (PSAPs).
“Every 911 center is very different and they are as diverse and unique as the communities that they serve,” said Karin Marquez, senior director of public safety at RapidSOS.
One PSAP that serves New York City is a 450,000-square-foot, blast-resistant cube set on nine acres, but you also have “agencies in rural America that have one person working 24/7 and they’re there to answer three calls a day,” Marquez noted.
Founded eight years ago, RapidSOS processes more than 150 million emergencies each year across approximately 5,000 PSAPs. The company’s technology helps call centers integrate requests from cell phones, landlines and IoT devices.
“Its technology is almost certainly integrated into the smartphone you’re carrying and many of the devices you have lying around,” Managing Editor Danny Crichton writes in a four-part series that studies the company’s origins and ensuing success:
Full Extra Crunch articles are only available to members
Use discount code ECFriday to save 20% off a one- or two-year subscription
“I’ve honestly never met a company like RapidSOS with so many signed partnerships,” says Danny, who initially wrote about the firm six years ago.
“It’s closed dozens of partnerships and business development deals, and with some of the biggest names in tech. How does it do it? This story is about how it built a successful BD engine.”
Thanks very much for reading Extra Crunch this week!
Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist
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The headlines might be littered with mega deals, IPOs and SPACs, but in all likelihood, you will exit your startup via a relatively smaller merger or acquisition, Ben Boissevain writes in a guest column.
“The IPO market is healthy again, but M&A still represents 88% of exits: So far this year, there were 503 IPOs and 5,203 deals,” writes Boissevain, founder of Ascento Capital.
“While it is good to strive for a billion-dollar-plus sale, a successful IPO or a SPAC deal, it is practical to prepare your startup for a smaller transaction.”
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U.S. edtech company Duolingo bumped up its IPO price range Monday morning, targeting $95 to $100 per share, up from previous guidance of $85 to $95 per share.
“The fact that Duolingo is raising its IPO price range indicates that we are more likely on the path for a strong offering than a weak one,” Alex Wilhelm notes.
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Many Extra Crunch readers will not have heard of China’s fastest-growing bottled beverage company: Genki Forest is a direct-to-consumer startup that started selling its sodas, milk teas and other products just five years ago.
Today, its products are available in 40 countries and the company hopes to generate revenue of $1.2 billion in 2021. After closing its latest funding round, Genki Forest is valued at $6 billion.
Industry watchers frequently compare the upstart to giants like PepsiCo and Coca-Cola, but founder Binsen Tang comes from a tech background, having funded ELEX Technology, a social gaming company that found success internationally.
“China doesn’t need any more good platforms,” Tang told his team in 2015, “but it does need good products.”
Leveraging China’s robust distribution network, lighting-fast manufacturing capabilities and a vast pool of data that enables holistic digitization, Genki Forest sells more than 30% of its products online.
“Everything feels right about the company,” said VC investor Anna Fang. “The space, the founder, the products and the back end … they exemplify the new Chinese consumer brand.“

Sequoia’s Mike Vernal joined us on TechCrunch Early Stage: Marketing and Fundraising to discuss how founders should approach product-market fit, with a specific focus on tempo.
It doesn’t mean fast in the kind of uncontrolled, reckless, crashing sense. It means fast in a sort of consistent, maniacal, get-a-little-bit-better-each-day kind of way. And it’s actually one of the top things that we look for, at least when evaluating a team: How consistently fast they move.
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Alex Wilhelm spent the end of last week and the beginning of this one looking at Chinese regulations targeting its edtech sector, aiming to understand “precisely what is going on with the various regulatory changes.”
“For startups, the regulatory changes aren’t a death blow; indeed, many Chinese tech startups won’t be affected by what we’ve seen thus far,” he writes. “But on the whole, it feels like the risk profile of doing business in China has risen.”
Image Credits: Porsche AG
To ensure a steady supply of batteries, automakers are increasingly looking to joint ventures.
“Like if you’re VW, and you say, ‘We’re going to go 50% electric by whatever year,’ but then the batteries don’t show up, you’re bankrupt, you’re dead,” Sila Nano CEO Gene Berdichevsky said in a recent interview.
“Their scale is so big that even if their cell partners have promised them to deliver, automakers are scared that they won’t.”
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The team at memoryOS “spent countless hours researching down the rabbit hole of crowdfunding tips and tricks” before it successfully became the most-funded app on Kickstarter, the company’s CEO, Alex Ruzh, writes in a guest column.
“We’re sharing our approach (and secrets) to building a successful crowdfunding campaign because we know just how tough it can be to launch your own product,” he writes.

Startups developing so-called deep tech often find it challenging to raise capital for various reasons.
At TechCrunch Early Stage: Marketing and Fundraising, two experienced investors, SOSV partners Pae Wu and Garrett Winther, spoke on the subject and advised startups facing a challenging fundraising path.
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Processing payments, credit and authorizations for B2B purchases is all handled electronically, but that’s not a panacea.
For example, volume sellers prefer to work through traditional accounts payable systems instead of paying the service fees smaller companies accept as the cost of doing business.
However, the combination of fraud and identity protection with credit handling and digital payments “creates a powerful network, the type that can not only build trust but enable one-click transactions at scale,” says Andrew Steele, an investor at Activant Capital.

At TechCrunch Early Stage: Marketing and Fundraising, Cowboy Ventures’ Ted Wang spoke about why he encourages founders in his portfolio to work with executive coaches.
I don’t think you need to limit advice from people who are “been there, done that.” I think it is really important to get input from those people, but in terms of personal development, I think you want insight from people who understand how human beings listen and learn and grow.
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Here at memoryOS, we have a saying we repeat often: “Most of the Kickstarter happens before the actual Kickstarter.”
Preparation is the key. But even if you understand that most of the work is done in advance, you should still prepare yourself for some sleepless nights after the launch date. The usual startup mantra will apply to your crowdfunding campaign just as well: Measure, analyze and adjust along the way.
As you may know, crowdfunding fits some B2C products better than it does others. So to give you our product context here, memoryOS is a gamified app that teaches memorization skills with the help of virtual mind palaces and interactive microlessons taught by our co-founder, two-time World Memory Champion, Jonas von Essen.
Image Credits: memoryOS (opens in a new window)
Before becoming the most funded app on Kickstarter and getting it 6,400% funded (and carrying it further to the Indiegogo platform right after), we spent countless hours researching down the rabbit hole of crowdfunding tips and tricks. We also had calls with several top-tier crowdfunding project creators who were kind enough to answer our questions and share bits of knowledge from their experience.
We’re sharing our approach (and secrets) to building a successful crowdfunding campaign because we know just how tough it can be to launch your own product. So here is a complete 10-step guide:
You should have a unique idea for a product that would solve at least one problem for your target audience. The proven approach is to set two major hypotheses right at the start and then work on getting them tested:
You will need to build a base prototype to test the first hypothesis and, if it works, you can then work on turning it into an MVP or a short demo version for your future commercial product. You can then get people to test it for free and prepay for the full version.
Getting people to actually back their interest with their wallet means you already have customers, not merely enthusiasts, and it significantly increases the chances of a successful project.
Yes, it’s important that you get people to pay a minimum reservation deposit at this point and receive their commitment to pay the remaining amount for the full product later on. Getting people to actually back their interest with their wallet means you already have customers, not merely enthusiasts, and it significantly increases the chances of a successful project.
As soon as you have something to test, conduct short surveys to better understand your customers by gathering and analyzing the reasons why and for what purpose(s) they would want your product.
Here at memoryOS, we called the first couple thousand of our leads and had many insightful conversations to help us connect to our audience on a more personal and emotional level.
Once you have a demo or prototype for the users to test, make sure to add a feedback form right at the end of their experience (or gather feedback using Google Forms for surveys, or via email inquiries).
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Building a business is hard; about 50% of businesses fail in the first five years. The early years of an entrepreneur’s journey can be difficult and lonely. When starting my digital services firm Fearless, I convinced my wife to rent out our home and move in with my mother so we could have an extra income while I built Fearless in my mother’s basement.
That was 10 years ago — Fearless now has over 115 employees.
That story of struggling to build a tech company and working out of a basement or garage until you “make it” is pretty common, but the barriers facing Black entrepreneurs make it harder to find success and support.
Research by the University of California, Santa Cruz states that minority-owned startups have access to less capital than their white counterparts. The right investors can offer more than just funding to early-stage companies; the connections those in the venture capitalist world have can bring an entrepreneur the new business, mentorship and employees needed to grow.
Venture capital firms like Harlem Capital and Black Angel Tech Fund are focused on changing the faces of entrepreneurship by diversifying their portfolio, but traditional venture capitalist funding is not the only way to grow your business.
There are other avenues and opportunities to get the support, financial and otherwise, to help build a successful company:
Equity crowdfunding: Similar to crowdfunding campaigns like GoFundMe or Kickstarter, equity crowdfunding allows nontraditional investors to support businesses and receive equity. Enabled through Title III of the 2012 JOBS Act’s Regulation CF, equity crowdfunding allows all companies to sell securities, whether in the form of equity in the company, debt, revenue shares, convertible notes and more. Equity crowdfunding platforms include WeFunder and LocalStake.
Mentor programs: Fearless was lucky enough to be accepted into the DoD Mentor-Protégé program early in our growth. As the oldest continuously operating federal mentor-protégé program in existence, the DoD program helped us establish and expand our footprint in the federal government contracting space. NewMe and Black Girl Ventures are two programs that specialize in mentorship for early-stage companies.
Become 8(a) certified: The federal government has a goal of awarding at least 5% of all federal contracting dollars to small, disadvantaged businesses each year. These businesses fall under the 8(a) classification. To qualify for the program, you must be a small business with 51% of ownership and control from U.S. citizens who are economically and socially disadvantaged and the owner’s adjusted gross income for three years is $250,000 or less.
The full definition of what counts as being economically and socially disadvantaged can be found in Title 13 Part 124 of the Code of Federal Regulations. Fearless has been classified as an 8(a) company for several years and we have been able to secure several contracts through the certification.
Tap into Small Business Administration resources: More than a million users visit SBA.gov to utilize tools like the SBA Business Guide and Lender Match site. By using the SBA website and reaching out to your local SBA office, you can make full use of the programs available and connect with business owners who can offer advice and mentorship.
Identify supportive bankers: Your business is your top priority and the people you engage with should view your company as a priority too. You need someone vested in your success who will advocate for you when you need them. If you meet with a banker and get a sense that you would be an account number instead of a person, then find another one. If you don’t have your banker’s personal cell phone number, and they aren’t willing to visit you at your business, then take a pass and find a true partner who supports you.
I am putting the call out to business owners and entrepreneurs who are further along in their journey to mentor and invest in Black-owned businesses. Think back on the support you received, and be that model for someone else. Or be the mentor that you wished you had when you were starting out. Take time to invest in other Black-owned tech companies or fund the programs that do. Share your knowledge and experience with Black tech leaders.
If there isn’t a resource hub for Black entrepreneurs in your city, create one. Fearless is a small company and we have still managed to help 13 new companies get off the ground through our accelerator program, Hutch.
Hutch is an intensive 12-month program that gives entrepreneurs a blueprint for building successful digital service firms, by empowering them with the tools, mentorship and peer support they need to have a lasting impact. We think of this program kind of like a home base for our entrepreneurs, providing them with a foundation of support so they can grow without getting lost amongst bigger companies in the industry.
Help create the spaces in your community that will foster innovation and business growth.
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Finding the right product/market fit is challenging for any company, but it’s just a little harder for hardware startups.
I recently visited the San Francisco offices of Nebia to chat with co-founder and CEO Philip Winter, whose eco-friendly hardware startup has received funding from Apple CEO Tim Cook, former Google CEO Eric Schmidt and Fitbit CEO James Park. After checking out the company’s latest shower head, we eased into a discussion about the opportunities and challenges facing hardware startups in Silicon Valley today.
TechCrunch: What’s so hard about hardware in 2020?
Philip Winter: The hardware landscape was, at one point, super-hot, at least in Silicon Valley. I would say like three or four years ago. A lot of companies came out with breakout products and a lot of them disappeared over the years since then. A lot of them are our peers — it’s a fairly small community.
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At CES 2020, one of the more well-represented gadget categories was definitely consumer robots – but none was more adorable than MarsCat, a new robo-pet from industrial robot startup Elephant Robotics. This robot pet is a fully autonomous companion that can respond to touch, voice and even play with toys, and it’s hard not to love the thing after spending even just a brief amount of time with it.
MarsCat’s pedigree is a bit unusual, since Elephant Robotics is focused on building what’s known as ‘cobots,’ or industrial robots that are designed to work alongside humans in settings like factories or assembly plants. Elephant, which was founded in 2016, already produces three lines of these collaborative robots and has sold them to client companies around the world, including in Korea, the U.S., Germany and more.
This new product is designed for the home, however, not the factory or the lab. MarsCat is the startup’s first consumer product, but it obviously benefits immensely from the company’s expertise and experience in their industrial robotics business. With its highly articulated legs, tail and head, it can sit up, walk play and watch your movements, all working autonomously without any additional input required.
While MarsCat provides that kind of functionality out of the box, it’s also customizable and programmable by the user. Inside, it’s powered by a Raspberry Pi, and it ships with MarsCat SDK, which is an open software development library that allows you to fully control and program all of the robots functions. This makes it an interesting gadget for STEM education and research, too.
MarsCat is currently up for crowdfunding on Kickstarter, with Elephant having already surpassed its goal of $20,000 and on track to raise at least $100,000 more than that target. Elephant Robotics CEO and co-founder Joey Song told me that it actually plans to ship its first batch of production MarsCats to users in March, too, so backers shouldn’t have to wait long to enjoy their new robotic pet.
There are other robotic pets available on the market, but Song thinks that MarsCat has a unique blend of advanced features at a price point that’s currently unmatched by existing options. The robot can respond to a range of voice commands, and will also evolve its personality over time based on how you interact with it: Talk to it a lot, and it’ll also become ‘chatty;’ play with it frequently and it’ll be a playful kitty. That, combined with the open platform, is a lot to offer for the asking backer price of just $699 to start.
Sony’s Aibo, the canine equivalent of MarsCat, retails for $2,899 in the U.S., so it’s a bargain when considered in that light. And unlike the real thing, MarsCat definitely doesn’t shed, so it’s got that going for it, too.
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Remember the OUYA?
As a cheap Android-powered game console, it was pitched as being able to “open the last closed platform: the TV.” It was one of the first huge Kickstarter campaigns, raising nearly $9 million on the site in 2012. Even half a decade later, it remains one of the biggest campaigns Kickstarter has seen.
Outside of Kickstarter, the $99 console never really found its audience. OUYA was split up by 2015, its software assets and team acquired by Razer.
Razer kept the OUYA store running post-acquisition, a ghost of its former self. On June 25th, 2019, they’ll pull the plug once and for all.
In an FAQ on its site, Razer says that the OUYA store will be shut down by the end of June. The game store for the Forge TV (a similar attempt at an Android-powered console built by Razer itself) will also be shut down.
If you’ve somehow still got funds in your OUYA account, you’ll want to use them quick — the FAQ suggests that come June 25th, those funds will be more or less gone.
But what about the games you’ve already bought? Will those continue to work? That’s a bit more complicated. Writes Razer:
You will be able to play games via the OUYA platform until June 25, 2019. Once it has been shut down, access to the Discover section will no longer be available. Games downloaded that appear in Play, may still function if they do not require a purchase validation upon launch. Contact the game developer for confirmation.
In other words: some games will work, some won’t. They do note that the download servers will also go dark on June 25th — so if there’s a game you want to keep for the long term, make sure you’ve got it saved on the console.
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The week following CES is probably as good a time as any to launch a Kickstarter campaign for your strange new smartphone. After all, a company like Doogee is going to have difficulty rising above the din during a CES or MWC, even with an idea as interesting as the rugged, modular S90.
The Chinese manufacturer has no shortage of interesting concepts, of course. And while the S90 appears to be a bit of a niche, it’s already surpassed its (admittedly modest) goal several times over.
The product’s modular concept is pretty in line with Motorola’s Moto Z offerings, with a series of plates that snap onto the back of the handset, delivering different hardware features through a multi-pin connector.
Many of the mods should prove familiar, too, including an extra battery (5,000mAh) and a game pad. Though, in addition to the rugged handset, you’ve also got some add-ons specifically tailored to those looking for a device to use in the field. Among those listed are a night-vision camera and a walkie-talkie, which extends the handset’s communication abilities where cellular networks don’t reach.
Doogee is shooting for a February delivery for the new handset.
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Every year I teach an MBA course at Stanford about the exciting opportunities for tech investors and entrepreneurs in developing economies. When we designed the syllabus back in 2013, Rocket Internet was still firing on all cylinders on four continents. The unapologetic machine built to copy big American internet companies created billions of dollars for the Samwer brothers and its backers. During Rocket’s golden years, the best startups in the developing economies seemed to inevitably have an original reference in Silicon Valley.
Accordingly, we added a class about the opportunity of replicating business models to seize this information arbitrage. Call it the second-mover advantage.
Despite my conviction about the model, the copycat word — short for replicating startups and attached to these ventures — annoyed me from the start. More than a term to describe a straightforward recipe to launch, I see it as an unconscious way to belittle an entire group of hard-charging founders and investors.
Indeed, while in foreign eyes, we have been building a Mexican Kickstarter, a Middle Eastern Uber, an Indian Amazon or a Colombian Postmates, I argue visionary founders are taking a simple idea that already exists and creating new worlds.
On the internet, there are Einsteins and there are Bob the Builders. I’m Bob the Builder. Oliver Samwer, founder of Rocket Internet
While impact is the final goal, founders can approach the journey in different ways. The most common approach in the startup world is to use the business method, or more pompously, the design thinking methodology. “Fall in love with the problem, not the solution,” mentors keep telling a succession of startup clusters in acceleration programs. The best and “leanest” way to product market fit is by starting small then keep iterating the solution until you nail it.
A second way to start is favored by engineers and scientists: Take a new promising technology or a forgotten molecule, then find a big problem. Keep iterating until you find a problem worth solving, like a hammer looking for a nail.
A third way is starting like painters create, building skills by copying classics, or like a new chef cooks by starting with iconic recipes: replicate a proven idea and iterate until you find traction.
Until a few years ago it was ostensibly the only way to scale in developing economies. The model helped raise local capital from risk-averse investors who needed reassurance. The playbook to scale was unfolding a couple of years ahead and served as a guide to founders without previous startup experience and no local role models. The potential acquirer was identified and sometimes contacted in advance. Founders weren’t crazy and investors weren’t dumb.
Replicating a business model has served in emerging ecosystems as the gateway to entrepreneurship and venture investing.
Photo courtesy of Flickr/A_Marga
According to conventional wisdom, new ecosystems around the world grow through the following three stages, be them in developing economies or more developed countries. First, local and foreign entrepreneurs replicate successful models focused on local markets. Then as the ecosystem evolves, founders start applying existing technologies to solve local problems. Finally, as the tech space matures, new technologies begin to flourish.
In my opinion, those stages never happen sequentially as stated by ecosystem observers. Successful startups that started with a foreign inspiration can outgrow the master. If they are not bought into submission by the first mover, some of the most famous copycats reinvented the original and made it better: Mercado Libre is much more relevant in the e-commerce space than eBay . Flipkart is hardly an Amazon, not to mention WeChat. These companies are in turn some of the most prolific tech innovators on the globe. Truly ecosystems evolve organically in unique ways reflecting their history, geopolitical environment, economic structure and cultural features.
Two ways to defend the status quo: “It’s been done before” and “It’s never been done before.” –Thibault @Kpaxs
Recently, it’s hard to hear American observers use the word copycat to describe any American company. After all, Guilt replicated VentesPrivees and Lime, Chinese dockless bike sharing and many more examples. All American startups are treated as innovators while the rest as mere followers.
Recently, Chinese or Indian startups seem to be given the benefit of the doubt regarding their originality. Is it because these regions have become more innovative? Maybe. But it’s also because these ecosystems have gained the respect of Silicon Valley. Indeed, Chinese consumer tech surpassed decisively the U.S. as the most important country in terms of investments.
So here’s my humble suggestion to our wealthier and more accomplished colleagues: stop using the c-word with founders. It’s offensive. Most probably, these founders are facing more challenges to build their companies and lower odds for success that the first mover. If anything, they have more merit than the originals.
As for founders, when they call you a me-too, remember all teams started somewhere, somehow. In fact, most started like Bob the Builder before turning into Einsteins. The truth is, it doesn’t matter where you start. You can start by applying a new technology or protocol. You can start with a problem you feel passionate about. You can start by replicating a business model. It doesn’t really matter if you take a big swing at the future and trust you will figure out how to make it happen. It doesn’t matter what label they use while you change the world for the better.
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