Crowdfunding Will Change the Venture Capital Approach
Returning to the Pebble example, crowdfunding has modified a few of these steps.
1: Build a prototype, check.
2: Get customers, check – thanks to kickstarter, Pebble has pre-sold nearly 16,000 units
3: Show engagement, maybe – Pebble had decent pre-sale stats, but that does not prove people will use it. Or that the product works as promised.
4: Run monetization experiments, maybe – Pebble has proven they have revenue through their 16k presale, but again, no actual users.
5: Prove scalability, no – Pebble products have not been delivered yet. Until their investors report back that they have actually received the watch, scalability is still a giant question. They still need to produce the watches.