Inventing New Products/Inventions/Crowdfunding Tips
I am a small business owner and my nephew is working on a lean start up company. He needs resources in order to develop his product. He says that crowd funding sounds like a good option but I told him that his product lacked that "sexy" appeal haha. I offered him money so that he could refine his product, but he says that he just needed to get the concept across and that I should use that money to ensure that his project gets fully funded (because on kick starter its fully funded or no dice.)
Personally, I think that a more developed product is more likely to turn heads rather than just an idea and a decent prototype, but I don't have much experience with crowd funding.
What do you think is the better strategy?
NOTE: This is more of a "poll" question, so a short rationale is all that's needed, unless you want to suggest another strategy.
MAIN QUESTION: I mostly would like some general tips on how to crowd fund effectively, that would greatly be appreciated.
I am not an expert in this crowd sourcing department but from what I have read a lot of projects get funded and then fall short when it comes to delivering. My own experience with manufacturing is all projects take longer and cost more than expected. Everything I develop now is done in soft launch mode for a year or two. You get good feedback from the customers before you sink a lot of money into mass production. The mistakes are much cheaper, you can shift resources to the projects that are hits, let the less popular ones idle away with continuous improvements or just kill them off.
Your advice to take the first round of seed funding to refine the project is SUPER.
All the best with the project Joseph.