{"id":4703,"date":"2013-04-07T18:00:19","date_gmt":"2013-04-08T00:00:19","guid":{"rendered":"http:\/\/financenewmexico.org\/?p=4703"},"modified":"2013-06-24T16:14:31","modified_gmt":"2013-06-24T22:14:31","slug":"innovators-learn-the-benefits-challenges-of-crowdfunding","status":"publish","type":"post","link":"https:\/\/financenewmexico.org\/sandbox\/articles\/general-business-advice\/innovators-learn-the-benefits-challenges-of-crowdfunding\/","title":{"rendered":"Innovators Learn the Benefits, Challenges of Crowdfunding"},"content":{"rendered":"
\"By<\/a>

By Lisa Adkins, Director of the BioScience Center<\/p><\/div>\n

\u201cCrowdfunding\u201d is a way that startups can raise money to get a project or enterprise off the ground without company founders having to surrender ownership, secure a loan or approach foundations for elusive grants.<\/p>\n

Earlier incarnations of the practice didn\u2019t have the advantage of instant access to a global fan base that can grow exponentially through social media. The Internet created that access, and crowdfunding sites like Kickstarter.com and IndieGoGo.com created platforms where people could pitch their projects.<\/p>\n

Aqua Research, a resident company in the BioScienceCenter incubator in Albuquerque, is using IndieGoGo to raise $50,000 by May 10 to finance production of its H2gO water purifier, which can turn up to five gallons of unsafe water at a time into potable water using a solar-powered rechargeable cell-phone battery.<\/p>\n

QueLab, an Albuquerque nonprofit raised twice as much money as it needed on Kickstarter to secure the materials to build a three-dimensional printer for its \u201cmaker-space,\u201d a creative workspace where people collaborate on innovations \u201cat the intersections of science, culture, art and technology.\u201d<\/p>\n

Thirst for invention<\/strong><\/p>\n

The h2gO Purifier\u2019s inventor, Rodney Herrington, also invented its predecessor, the MSR MIOX Purifier, used for years by the U.S. military. Private funding underwrote research and development of this next-generation device, but now the company wants to begin production, obtain certifications and conduct field-testing.<\/p>\n

The purifier uses electrolytes to convert salt into a powerful disinfectant that\u2019s added to impure water, making safe drinking water in about 30 minutes. The device is recharged via its integrated solar panel.<\/p>\n

As of mid-March, 82 funders had contributed $9,942 toward Aqua Research\u2019s goal. Unlike Kickstarter, IndieGoGo isn\u2019t an all-or-nothing proposition. Project sponsors can keep whatever they raise, but the fee paid to the crowdfunding site is higher (9 percent verses 4 percent) when projects fall short of their target.<\/p>\n

Those contribution at least $55 to Aqua Research will receive one of the purifiers when they\u2019re produced. For details, see http:\/\/www.indiegogo.com\/projects\/h2go-quest-to-create-the-best-personal-water-purifier<\/a>.<\/p>\n

Power of abundance<\/strong><\/p>\n

QueLab raised $2,200 \u2014 twice its $900 goal \u2014 in 30 days earlier this year to buy a 3-D printer, a computer dedicated to the printer and printing filament. The nonprofit\u2019s members and visitors can use the printer, once it\u2019s built, to fabricate things for fun or profit.<\/p>\n

Because the money raised from crowdfunding isn\u2019t a loan, it doesn\u2019t have to be repaid. But getting a project funded requires coordination, good financial planning and an appealing message, QueLab board member Ray Finch emphasized. It isn\u2019t \u201cfree.\u201d<\/p>\n

\u201cYou have to set it up so people want to give you money,\u201d he said. \u201cAnd you have to be prepared \u2014 you have to have your perks [rewards to donors] ready, and your goal has to be reasonable and attainable.\u201d<\/p>\n

Finch said he was surprised how quickly the group raised \u2014 and exceeded \u2014 its goal. The extra money will finance a second, more experimental printer. The organization hopes to use the platform again for other projects \u2014 once it finds a larger space for its growing venture.<\/p>\n

QueLab thanked its backers with T-shirts, public mentions and \u2014 best of all \u2014 access to the \u201cmaker-space\u201d and all its creative tools. To view QueLab\u2019s pitch, visit http:\/\/www.indiegogo.com\/quelabprinter<\/a>.<\/p>\n

The BioScience Center, located in Uptown Albuquerque, is the only incubator\/accelerator in New Mexico focused on nurturing bioscience and life-science startups. It has more than 40 offices and eight wet (chemistry and microbiology) laboratories totaling 2,500 square feet and shared facilities that include reception, IT infrastructure, group purchasing and conference space. Founded and managed by entrepreneurs who have considerable experience creating, nurturing and exiting successful businesses, The BioScience Center is the place for fledgling bio companies.<\/p>\n

Download\u00a0288_Innovators Learn the Benefits Challenges of Crowdfunding<\/a>\u00a0PDF<\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cCrowdfunding\u201d is a way that startups can raise money to get a project or enterprise off the ground without company founders having to surrender ownership, secure a loan or approach foundations for elusive grants. Earlier incarnations of the practice didn\u2019t … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[9],"tags":[],"_links":{"self":[{"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/posts\/4703"}],"collection":[{"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/comments?post=4703"}],"version-history":[{"count":16,"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/posts\/4703\/revisions"}],"predecessor-version":[{"id":6000,"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/posts\/4703\/revisions\/6000"}],"wp:attachment":[{"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/media?parent=4703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/categories?post=4703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/tags?post=4703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}