Homeworkassignment Crowdsourcing and Crowdfunding

There are a lot of examples of crowdfunding. The reason behind this is the fact that crowdfunding is very popular nowadays. But not every crowdfunding project has a happy ending. Not all projects can reach their funding goal.

The first example I want to show is the Ouya gameconsole. With a goal to raise $950.000 in 30 days, it was already a pretty big project. But they never thought it would be so popular, that they raised $8,596,474 when the campaign ended. This was one of the most successful crowdfundingprojects of Kickstarter.

The Ubuntu Edge, a yet to be created and released smartphone by Canonical, tried to raise $32 million in 30 days using IndieGoGo. They never managed to reach that amount, but they do have the record of largest amount raised in a crowdfunding campagin, having rasied a total of $12.8 million.

In this case, the strength of Ouya, was the weakness of the Ubuntu Edge. Ouya had a lower entrance barrier, a better known product and also a much better marketing. The Ubuntu Edge had a pretty good product, but it wasn’t well known due to their operating system. They had a high entrance barrier and their marketing was lacking. The exposure of the Ubuntu Edge was too small, and thus hampering the performance of the crowdfunding campaign.

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