Being an entrepreneur is hard work from the get go. Having an idea is easy; the challenge is implementing it into a viable product/service that can be monetized at a reasonable time period.
The top most obstacle to the entrepreneurial process is the lack of capital. I don’t believe there is any bank out there that will give you funding based on idea only. No matter how mind blowing it is.
So what next?
You have probably read how Silcon Valley start-ups in the US are raising capital through crowd sourced funding, well; they are not the only ones. Kenyans like you and me are raking in millions for their projects through crowd funding sites. The two behemoths sites out there are Kickstarter and IndieGoGo.
So far there are 129 Kenyan projects on Kickstarter, and 56 have been successfully funded; raising over 75 million shillings in starting capital.
What is Kickstarter?
“A new way to fund creative ideas and ambitious endeavours,”that’s how Kickstarter describes its self.
1. You post a project description on Kickstarter. You make a pitch video. The video isn’t a strict requirement, but almost all funded projects have a video. You come up with a set of “rewards” for different pledge levels on the site. You set a funding goal and a time frame for your project.
2. Kickstarter staffs look at your proposed project and provide feedback. Then they (hopefully) approve your project and it’s posted on the site.
3. Your project goes live.
4. If you don’t hit your funding goal in the specified time frame, no one’s cards get charged and you don’t receive any of the funds.
Read Also: How to create a successful Kickstarter campaign
Drawbacks
All or Nothing
Kickstarter pledge drives are “all or nothing,” meaning that if the goal isn’t met by the specified time then no one’s credit cards are charged and the project doesn’t get any of the pledged funds.
Fees
Kickstarter takes a 5 percent cut of your pledges and Amazon will take an additional amount (around 2 percent) on top of that. If your margins are slim, this could be significant.
These are some of the successful funded Kenyan projects
