Crowdfunding is fast becoming a mainstream way of generating investment for a startup or new product. Recently, Microsoft Start published a story of how Hypershell generated over $1 Million in crowdfunding for their product which proves this point.
This product is a hiking “exoskeleton” that promises wearers a “50% torque increase, and quadrupled motion acceleration capability.” According to the company’s Kickstarter page, the exoskeleton has over 2,500 interested users who have pledged HK$ 9,621,027 ($1,228,240).
The rig is a wearable bionic framework that makes muscle power more efficient; the one-horsepower wearable device “offsets 30 kg (66 lbs.) of weight.” It does so by means of 14 AI sensors that help it contour to the wearer’s movements.
It is also easy to carry, as it packs down to a volume of about 6.5 litres. The fully charged rig can assist the wearer over 12 miles of hiking, trail running, or mountaineering.
Whilst it sounds like a viable product, sceptics are concerned about how well it would be able to deliver on the promises made.
According to orthopaedic surgeon John Paul Rodriguez, the problem lies in the fact that walking and running are activities that strengthen the lower back muscles. These muscles are already weak in people who lead a sedentary lifestyle. By using bionic support, one would be sacrificing the chance of strengthening them in exchange for more power.
The other concern raised was the low cost of the device. For a device to be this powerful and tech-intensive, the price of $600 seems quite low. However, these concerns have not affected investors, who were happy to pledge money to get the chance to use this product first. This desire is in part fuelled by the promotional video used to sell the product on the Kickstarter page.
The video demonstrates how easy it is to store, carry, and use the product. It also makes running up mountains and hiking through treacherous terrain look easy. A visual demonstration of the rig might have had a significant impact on the success of the crowdfunding campaign.
This observation is confirmed by Bold Content, a London-based video production company. According to the company’s crowdfunding video production service page, having a high-quality crowdfunding video can make the campaign much more compelling than one with only pictures. Using a video, the company can tell its story, show how its product can solve problems, and create a sense of excitement around it.
It can be much more effective at convincing investors than any other form of marketing, especially when the investors are also potential users of the product, as is often the case with crowdfunding campaigns.
The company also talks about the process involved in making a compelling crowdfunding video and what one needs in order to make it engaging. Finally, it discusses why one needs to vet the video production company properly, as that would affect the final product.
All in all, if a new business wants to use crowdfunding to generate investment for its product, investing in a video to market might make good business sense.
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