Crowdfunding Secrets Indiegogo and Kickstarter May not Divulge

By Michelle McIntyre

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I recently met an entrepreneur named Kitae Kwon who had raised $84,000 three years ago on Kickstarter for his unique docking station called Landing Zone.

This is pretty amazing considering the average amount raised is around $5,000.

There are some other exceptions.

Scanadu, maker of the super cool Scandadu Scout personal health monitoring device, raised more than $1.6 million using Indiegogo.

If you are not that familiar with the concept, here is the definition:
Crowd funding or crowdfunding (alternately crowd financing, equity crowdfunding, or hyper funding) describes the collective effort of individuals who network and pool their resources, usually via the Internet, to support efforts initiated by other people or organizations. Crowd funding is used in support of a wide variety of activities, including disaster relief, citizen journalism, support of artists by fans, political campaigns, startup company funding, movie or free software development, and scientific research. (Source: Mashable.com)

From a technology perspective, usually people who sign up to use the crowdfunding services of say a Kickstarter or Indiegogo ask for monetary donations, not for equity in the company, and in return, send donors a gift. It’s usually their product.

It’s nice because it forces the founder to get his or her marketing act together. This could mean getting professional photos and videos made or simply writing sales messages.

It could also mean a slew of new customers, if the donor gift is in fact the product.

The third benefit is that it’s organized way for friends, families and of course, new contacts to donate to your company.

Crowdfunding typically works better for B2C products by the way. B2B’s should probably just tap angel investor friends directly for funds.
There are some downsides though. Kitae Kwon says watch out for people who make your product look bad by posting terrible reviews which can often be fake. For example, someone posts a negative review before actually receiving the product.

Kwon said they probably come from competitors or random people who just like to write bad reviews.

He added that you have to be strong and confident when crowdfunding. If it doesn’t go as planned, your company could still be successful. Sometimes the campaign was just not planned or executed well.

Additionally, said Kwon, you could have a successful crowdfunding campaign but the product fails.

The net is, says Kwon, don’t let the campaign define your startup’s future.

However, Kwon adds, there are many crowdfunding benefits. For example, when people donate to get your product as a gift, it shows a bigger prospective investor, like a venture capitalist it is in demand.

Since he raised $84,000 for his docking station for the Apple Macbook Air, which is 10 times the average amount raised, Kwon must have had a huge demand.

For more unique crowdfunding examples, check out this story on the website Hooked on Social Networking. For information about Kwon’s company Landing Zone, visit: http://landingzone.net/
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Michelle McIntyre is the president of MMC high tech PR, on the TEDxSanJoseCA executive team, and director of marketing communications for SVIABC. Follow her on Twitter at @FromMichelle  [Photo credit: iStockPhoto.com.]

 

Two Simple Tricks to Increase your Retweets

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By Michelle McIntyre

Twitter’s usage facts are impressive. According to the company, there are 255 million active users monthly and 500 million Tweets are sent a day.

Twitter is an important tool used by companies in conducting social business. According to Gartner, businesses leverage social media to drive growth, improve business processes and drive innovation. Marketers use it to gain valuable insight from customers and prospects.
Let’s face it. Twitter is important so community managers want more followers and tweet shares.

Retweets are definitely sweeter than being ‘favorited,’ especially if the retweeter has more followers than you, or at least a list of followers strategic to your business. Sometimes 50 strategic followers are better than 5k random ones.

I’m proud to say that when I Tweet about entrepreneurship or tech trends, I have been retweeted more than once by @SVForum, the top Silicon Valley organization for tech startups and their investors. My client prospects follow SVForum on Twitter. This is a good thing.
I noticed I am more likely to be retweeted if I do these two simple things.

1. AIM FOR 100 CHARACTERS OR LESS. People are more likely to retweet a shorter Tweet. Twitter rules say your tweet needs to be 140 characters or less, but Twitter users actually like 100 characters or less.
Use these free and easy services to shorten your URL links: TinyURL.com and Bitly.com. To use the services, copy paste your long link and make a short one. You should not have to register, sign in or pay for either service.

2. USE TWO HASHTAGS INSTEAD OF ONE. When I am managing the Twitter handle for @SVIABC, I like #communications and #pr since the organization promotes quality in the communications field. Sometimes I add #social, #socialmedia or what the social studs use, #SoMe. What a hashtag does is it includes your tweet in the ongoing group conversation on that topic. Many more people can then see your tweet even if they are not follow you. Pretty cool, huh?

What other tips do you have to increase retweets?
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Michelle McIntyre is the president of MMC high tech PR. @FromMichelle on Twitter

 

Guy Kawasaki says Entrepreneurs Make these Top 10 Mistakes

ImageGuy Kawasaki spoke at The Startup Conference this week. (Photo credit: Guy Kawasaki)

By Michelle McIntyre

Investor, TED Speaker, startup expert, former Apple evangelist and author of nine books, Guy Kawasaki gave a talk called “The Top 10 Mistakes Entrepreneurs Make” at The Startup Conference in Redwood City, Calif., Wednesday. He is currently chief evangelist of Canva, an online graphic design tool.

Kawasaki has a BA from Stanford University and an MBA from UCLA as well as an honorary doctorate from Babson College.

As a PR and business strategy consultant to many startups, nothing he said shocked or amazed me but his side comments and answers to audience were very funny. He has always had a way of giving business advice in an entertaining and highly digestible fashion.

Here is his list of 10 top entrepreneur mistakes:

Mistake 1 Multiply big numbers by one percent to calculate market size.

Solution: Entrepreneurs should calculate from the bottom up and have realistic expectations.

Mistake 2 Scale too fast.

Solution: “Eat what you kill.”

Mistake 3 Form partnerships, or just focus too much on them.

Solution: Focus on sales. Kawasaki says, “Sales ‘fixes’ everything!”

Mistake 4 Focus on the pitch.

Solution: Focus on the prototype. Code writing software is more important than Microsoft PowerPoint.

Mistake 5 Use too many slides.

Solution: Use the 10-20-30 rule. It is 10 slides or less, 20 minutes in length and no smaller than 30 point type. I agree with this. In fact, I tell clients no more than six slides.

Mistake 6 Make serial progress.

Solution: make “parallel progress.” Startups need to multitask and be flexible instead of deciding that everything must be done in an exact order.

Mistake 7 Try to retain control. It’s a mistake to think that if you own 51% of the company, you can call all of the shots. Most decisions voted on in the board room are decided ahead of time.

Solution: Instead of focusing on how much of pie you have, focus on “making a bigger pie.”

Mistake 8 Use patents for defensibility.

Solution: Use success. He cautioned against mentioning patents more than once in a pitch.

Mistake 9 Hire in your own image.

Solution: Hire to complement. If you are a male founder, look for a female to round out the management team. Diversity is good for business.

Mistake 10 Befriend your investors.

Solution: Simply exceed expectations.

ImageEnchantment is one of nine books by Guy Kawasaki. (Photo credit: Guy Kawasaki)

My key takeaway was that early stage startups need to make their top two priorities developing a quality product and building the user base. Nothing else is as important.

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Michelle McIntyre, @FromMichelle, is a PR consultant for tech startups, an IBM vet, on the executive team for TEDxSanJoseCA and director with Silicon Valley International Association of Business Communicators.

 

 

 

What Prospective Employers Find Out about You on Social Media

According to a story, “Should Companies Monitor Their Employees’ Social Media?” in the May 12, 2014 edition of The Wall Street Journal, job candidates need to beware that prospective employers are tracking their social media networks to get a glimpse of what they are like.

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The story covered results of a survey sponsored by Careerbuilder.com.

Although the article doesn’t refer to consultant candidates, there is no doubt they use similar research methods to check them out as well.

Here are the sites that employers are using to research candidates:
Facebook: 65%
LinkedIn: 63%
Twitter: 16%

Here’s what employers look for when they research a candidate using social media:
To see if the candidate presents himself/herself professionally: 65%
To see if the prospect is a good fit for company culture: 51%
To learn more about the candidate’s qualifications: 45%
To see if he or she is well-rounded: 35%
To look for reasons not to hire the candidate: 12%

Not surprisingly, here is what survey responders said hurt candidates:
Candidate posted provocative or inappropriate photos or info: 50%
Got a good feel for candidates personality: 50%
Candidates showed a wide array of interests: 50%
Background supported professional qualifications: 49%
Evidence of creativity: 46%
Excellent communication skills: 43%
Great references: 38%

Prospective employers need to be careful as well. The story says that these searches put the employers at liability. The story says that “An employer who learns than an applicant is gay, Moslem, disabled, or over 40 years old, and then hires someone else may face discrimination charges.”

To read the entire article, visit wsj.com.  The most interesting stats are on page R2 of the print edition.

If you haven’t bought a hard copy of The Wall Street Journal lately, pick up a copy at Starbucks or at a neighborhood store. It’s nice to read an actual “print edition” newspaper every once in a while.Of course you could also subscribe and get it at home or at the office.

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Michelle McIntyre is president of Michelle McIntyre Communications LLC, on the executive team of TEDxSanJoseCA, and director of communications for SVIABC. She’s @FromMichelle on Twitter.

Software Experts Advise Startup CEOs to Build those Ecosystems

Facebook recently announced it was buying WhatsApp for a whopping $19 billion. WhatsApp is valuable because it has 450 million users and is adding one million new ones per day according to the company.

The app allows people to send each other text and photo messages via the Internet, and will help Facebook grow stronger in the mobile market. A Time article described the deal as “epic” due to the humongous price paid.

Many billion dollar companies have blossomed recently because their apps have been adopted by a huge amount of people.  

And when an app becomes very popular, it can turn into a platform. Facebook, Salesforce.com and Twitter are all platform companies. Other companies make apps that work with them, making them even more popular and innovative.

Developing, building the ecosystem for and monetizing apps and platforms were topics discussed at the SVForum event “Apps to Platforms” Thursday, February 20th, at the McEnery Convention Center in San Jose.

About 150 people made up mostly software start-up founders and developer relations executives from large companies like Dell, IBM, Google and Microsoft, and a few consultants like me attended.

San Jose Mayor Chuck Reed gave the opening remarks, stating more than once that San Jose is the capital of the Silicon Valley. To me, the Silicon Valley is mostly the South Bay and San Jose is the largest city here so I agree with him. Sorry, San Francisco.

Here are some of the other comments from the panelist and keynote speakers.

In the first panel, Adrian Cockcroft, technical fellow, Battery Ventures and Netflix’s former cloud architect said, “There are three questions to ask when developing a killer app. They are, ‘Is it easy to use? How will it spread, and how do you monetize it?’”

Randy Heffner, vice president, Forrester Research says that the granddaddy of APIs, which are tools that help the software programs talk to eachother, Amazon.com took off because it opened its API to mom and pop and boutique websites and blogs. He emphasized the link between APIs and the concept of the internet of things, or how many automated things in our lives are connected.

However, Heidi Williams, director of platform engineering at Box, cautioned, “If you give people all the control in the world, it can lock you in later.” She added that Box’s platform strategy is to build, distribute and monetize.

Saad Khan, Partner, CMEA Capital, who started as an intern at IBM alphaWorks team in the late 90s when I was also working at Big Blue, elaborated on the importance of connecting the software dots. “We’re going to an automated world where everything is modular and connected,” said Khan.

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Another keynote speaker stressed the importance of ecosystem in creating innovation. “A platform is a lot more powerful when you can get someone else to build it,” added Matt Thompson, general manager, developers and platforms, Microsoft.

John Wolport, IBM’s Seeker of Awesomeness (his actual title), and creator of its unique Extreme Blue internal incubator program says that a company like Big Blue adds integrity and helps with partner engagement.

ImageAn audience member asked him, “How can start-up founders and big company workers get along? Their situations are so different.”

Wolport said that there are a lot of entrepreneurs within IBM they are not so different after all.

John Sheehan, CEO, Runscope, stressed the importance of platforms saying simply, “They bring you an audience.” Sheehan used to work for Twilio, which started as platform which is uncommon.

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SVForum is an organization that fosters networking and best practices among members of the technology startup community. The group recently moved its office to San Jose from the North Bay. Its new CEO is Ms. Adiba Barney. @SVForum on Twitter.

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Michelle McIntyre is a public relations consultant, executive member of TEDxSanJoseCA, director with the Silicon Valley International Association of Business Communicators, and an IBM vet. @FromMichelle on Twitter

The photos were taken by Michelle McIntyre. They are of, in this order, Saad Khan, Partner, CMEA Capital; John Wolport of IBM; and project managers at the uTest booth.

Silicon Valley Entrepreneur Rock Stars on the Next Big Thing in Technology

On Monday January 27, three seasoned entrepreneur rock stars manned the panel chairs at an SVForum event at IBM in Foster City, Calif., giving several dozen early stage start-up founders advice on the dos and don’ts of successfully getting their tech businesses off the ground.
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The event “The New Venture in 2014 – Choosing the Right Idea, Building the Team, and Getting the Venture Started” was moderated by John Lee, vice president, Silicon Valley Bank.
 
The software-savvy panel included Spreecast CEO and founder of StubHub Jeff Fluhr, Couchbase CEO Bob Wiederhold who was at the helm of Transitive when it was sold to IBM, and Ullas Naik, founder of Streamlined VenturesNaik is a seed stage angel investor whose various firms have backed 200 technology start-ups. Fifty are currently active investments.
 
The three generally agreed that Silicon Valley is the best place to start a technology company because it’s so entrepreneur-friendly.
 
“The technology ecosystem is robust in the Silicon Valley. Your management team should be based here. The way to think about it is if you want to make movies, you move to Los Angeles, not St. Louis,” said Naik.
 
They also said to choose a co-founder whom you know well and that a company’s strategic advisors should receive some sort of equity in order to be truly useful and not just a bunch of impressive names and photos on the website.
 
The panelists had strong opinions on recruiting co-founders. Fluhr said that he founded StubHub with a former Stanford B-school classmate. He added, “It is best if you have known someone a long time, so choose a friend you have worked with before or know from school.” 
 
Naik said, “I typically don’t invest in companies that have related co-founders, for example brothers or husband and wife. I also don’t like to invest in solo founders. There is too much to do. Co-founders who have just met three months ago are also red flag.”
 
He admitted that there are exceptions to the rule, for example, Cisco was founded by a husband and wife team. 
 
An audience member asked the panelists to comment on the next big thing in technology.

Jeff Fluhr said Bitcoin, the alternative form of currency was intriguing.
 
Database company CEO Bob Wiederhold said Big Data and the Internet of Things are important in his market and driving a lot of investments.
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Ullas Naik added that data and what people are doing with it as well as wearables are the next big things in technology. Naik also said, “I believe that an alternative form of currency will be big, but not Bitcoin.”
 
If you are interested in getting more hot tips from top technology company founders and investors, SVForum invites you to attend the APPs to Platforms event in in San Jose, Calif., on Feb. 20. Register at svforum.org. The all-day event is priced at under $200.
 
Follow SVForum on Twitter @SVForum.
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Michelle McIntyre is a tech PR consultant with 10 awards for outstanding results at top PR agencies and Fortune 500 companies. She’s a director with Silicon Valley International Association of Business Communicators and on the executive team at TEDxSanJoseCa. She’s @FromMichelle on Twitter
 

Photo 1: Jeff Fluhr
Photo 2: Bob Wiederhold

Do You Charge for an e-Book?

By Michelle McIntyre

Oakland-based business coach for midlife entrepreneurs, Dina Eisenberg recently spoke to my Women in Consulting (WIC) group in Los Gatos last week about how to kick start an information product or “infoproduct” business.

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An information product is any product or service that you can sell to people to provide them with information. It includes e-books, books, audios, CDs, DVDs, seminars, videos, tele-seminars and more.

Because the event description mentioned her law degree and creating a “passive income,” I was expecting tips on self-employed (S.E.) IRAs and 401Ks. I had just set up a S.E. 401K so I figured it will probably be redundant to what I already just learned after spending hours with a Fidelity representative to set up my own plan. I went to the meeting anyway for the networking. 

 I was pleasantly surprised when Eisenberg started talking though.  

What it was really about was creating sustainable income to make, what Eisenberg calls “a cushion for life’s bumps.”  Consultants and entrepreneurs who are typically actively involved in delivering their service benefit from creating passive income streams that work, even when they cannot.

A self-proclaimed “information product junkie,” Eisenberg has also produced a range of products from online courses to retreats and subscription programs.

She said she it all started when her husband, whom she considers a successful entrepreneur just like herself, went on disability for two years due to a medical issue that has since mostly gone away. He was her fiancé at the time.

She shared her tactics with the consultants, many of whom had created their own infoproducts. Several consultants had their products on hand and the talk turned into a brainstorm and information share of sorts instead of just a presentation.

Two of her messages stuck in my mind.

First, start charging!  Yes, the internet is awash in free material however, people will pay for the exact right product that solves their specific problem at that time. Don’t assume you have to start with free.

Second, ask first.  The difference between a profitable infoproduct and one that flops is research.  Search Linkedin threads and comments for a wealth of topic ideas for your information product.

To learn more about Dina Eisenberg, visit her website at http://infoproductdoctor.com/.

Here are related Twitter handles.

WIC: @WIConsult

Dina Eisenberg: @DinaEisenberg

The author of this post: @FromMichelle


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Michelle McIntyre is a blogger and high tech PR consultant based in Saratoga, Calif. She’s also the director of marketing communications for the Silicon Valley International Association of Business Communicators and on the executive team for TEDxSanJoseCA.