Influence of Crowd funding – CES 2014

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When most of the top consumer product manufacturers where burning the midnight oil to solve the smartwatch mystery, that has been a growing trend over the last few years, one company quietly sneeked in a product in 2013 that took the world by surprise. Rather unheard off in every way, Pebble started off as a dream in an upcoming crowdfunding organization called Kickstarter . When traditional venture capitalists failed them, Pebble looked towards crowd funding in April 2012. And soon it turned into a cult raising around 10 million from around 70,000 users around the world, becoming one of the highest crowd funded projects till date. It wasn’t long before they started mass production with a release date of January 2013. With around 200,000 units sold by the end of 2013, Pebble announced their second iteration of the smartwatch – The Pebble Steel at CES 2014 in Las Vegas.

But we are not here to talk to Pebble and its growing success, when companies like Apple and Samsung are still struggling to enter this market of watches. Rather I wanted to focus on what made Pebble possible – Crowd Funding. At least 4 of the gadgets that won the CES 2014 Awards were crowdfunded, with Oculus Rift “Crystal Cove” , the most notable amongst them. Reports suggest that Eureka Park at CES, the launchpad for startups, saw an increase of around 40% in the number of startups with exhibits. And what more, there was even an Indiegogo Zone at the venue with hoards of hardware startups flaunting their jaw-dropping ventures.

Starting a company has traditionally been expensive, when it involves hardware manufacturing. Finding an investor has been even more arduous if you just have a concept or a dream. Most investors for a manufacturing venture require a well chartered business plan stating the plan of action. This has kept a lot of startups stale for long periods of time. Crowd funding has changed all that. Through certain incentives to the crowd that funds the project, these startups have now found a way to bring their dreams to reality. Statistics show that Kickstarter has 128,244 projects registered with around $940 million pledged by close to 5 million users across the globe and around 55,000 projects among them have successfully taken off. Although Indiegogo have not published their statistics yet, I’m sure they have started to see heavy investments from users all around.

A little bit of trivia while I leave you to mull over the next venture you plan to start, CES 2014 took crowd funding rather seriously. So much that even their live streaming was crowd funded!

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iCrowd – Unraveling the power of crowd in the web world

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I must begin with a confession. I am a terrible Apple fanatic. So any resemblance in the title here is not a mere coincidence. But I assure you, the resemblance stops here. This is a concept – one that can perhaps be described as a concoction of a multitude of concepts that have already been floating around. Through the posts that follow, you will find me elaborating more on every one of those concepts to unearth a common theme across them – the crowd. Over the past five years, as social media and networking have started to mushroom around the web world, with smartphones and tablets becoming a common man’s gadget, several companies have started to make use of the data that is updated by users around the globe. And indeed many of the entrepreneurs and thinkers of this era have started to find correlations amongst these efforts. And along came several concepts, those which have gradually started to become an everyday term. Among them, Collaborative Consumption coined by Rachel Botsman , Crowd Sourcing coined by Jeff Howe of the Wired Magazine and Cognitive Surplus by Clay Shirky have grown significantly, in parallel.

While each of these talk about the influence of crowd in the functioning of the today’s world, analyzing and categorizing companies and organizations among various buckets, each have their own distinction. They portray a very specific aspect of the crowd and collectively they can encompass the iCrowd, in its entirety. Collaborative consumption talks about the idea of sharing what you have with a stranger, through a common platform for sharing, that is built upon trust. The product that is shared can vary with an organization that lay forth the platform. Airbnb, Taskbunny, A Spare to Share are all examples of this sharing. Rachel Botsman through her ground breaking talk at TED and her book What’s mine is yours , laid the foundation to this categorization of sharing, into buckets based on services .

Crowd Sourcing, coined back in 2005, talks about the idea of converting user input data into useful information, in the form of trend or recommendations or even just a single point of data depicting the state based on the data gathered from the “crowd”. I have spoken extensively about Crowd Sourcing and have tried to classify them into some reasonable buckets. SkyMotion, Waze, Minutely are all applications that have presented information from a large repository of user input data. There are then the amazon recommendations providing you with a list of products that “other customers” looked at, after viewing a particular product, in which case the input is user data collected passively. We will look into both these situations and how they play a part in the information transfer.

Cognitive Surplus is a more recent term, yet to be defined exhaustively. Clay Shirky describes it as a form of constructively making use of an individual’s free time towards a particular goal. Add in the crowd dimension and you now have an “organization without an organization”. Wikipedia is perhaps the best example of this “revolution”. Although Wikipedia has been around for quite sometime, identifying the concept that made it a huge online encyclopedia was as recent as 2009. As more and more efforts start getting categorized under this umbrella, cognitive surplus can be yet another powerful concept making use of the power of crowd.

In the coming weeks, I will hoop through each of them in more detail, pointing out examples that illustrate the common link and the distinctions.