The article “5 Ways the Maker Movement can help catalyze a manufacturing renaissance” calls for leaders to “embrace the Maker Movement as a deeply American source of decentralized creativity for rebuilding America’s thinning manufacturing ecosystems.”
Mark Muro of the Brookings Institution and Peter Hirshberg, co-author with me of the Maker City guide, are co-authors of the article, which makes the case that the new administration might want to look to the Maker Movement as a way to think about re-vitalizing manufacturing in America. They could look at places such as the Columbus Idea Factory in Ohio.
Entrepreneurs seeking funding for their startups now have another place to go: Indiegogo.
“Wait,” you may say, “can’t I already use the crowdfunding platform to raise money for my dream product?” That’s right, but today Indiegogo launched an equity crowdfunding service, which utilizes new government rules that took effect in May and allow anyone to invest in startups. Previously, only accredited investors who met certain financial requirements were eligible to back businesses in this manner.
“Our mission has always been to make it easier for individuals to raise money for projects they are passionate about, and this is the latest way we’re helping entrepreneurs access the financing they need while also giving backers the chance to invest in new companies,” Indiegogo CEO David Mandelbrot said in a press release. “Since Indiegogo first launched we’ve wanted to offer these sort of investments, and we’re very excited to be officially giving the millions of people who visit our platform every month the chance to get involved with equity crowdfunding opportunities.”
As of today, about $11.7 million had been raised for businesses using equity crowdfunding, according to NextGen Crowdfunding. This count includes three projects that have raised $1,000,000, the maximum amount allowed by law.
For its new portal, Indiegogo teamed up with MicroVentures, which helps companies raise funds using equity crowdfunding. Equity crowdfunding campaigns will be listed on both sites, with transactions made through MicroVentures. Legal documents will also be automated through an online questionnaire for funding-seeking companies through iDisclose.
“It’s great to see an industry leader in the rewards crowdfunding space jump into the equity arena,” says Kendall Almerico, CEO of BankRoll Ventures and an attorney who works with crowdfunding campaigns. “The long-term success of the JOBS Act laws and regulations will be accelerated when people already familiar with pre-purchasing goods on rewards-based sites like Indiegogo move to actually investing in small companies and emerging businesses through equity crowdfunding.”
During a previous interview with Entrepreneur, Mandelbrot said he wants Indiegogo to be a “springboard” for business owners.
More than $1 billion has been raised from more than 8 million people on Indiegogo, according to a press release. The company says it is “well-positioned” to introduce entrepreneurs and investors to equity crowdfunding. The service is launching with four offerings, according to the release:
We Fact-Checked Seven Seasons Of Shark Tank Deals. Here Are The Results.
On Shark Tank, the deal you make on camera often isn’t the deal you end up getting — if it happens at all.
Photo by Frederick M. Brown/Getty Images)
The hit ABC show that gives entrepreneurs a chance to pitch celebrity investors depicts some business owners walking away with life-changing deals. But more often than not, those hand-shake agreements change or fall apart after taping.
FORBES found that 319 businesses accepted deals on-air in the first seven seasons of Shark Tank. We spoke to 237 of those business owners and discovered 72% did not get the exact deal they made on TV. But tweaked terms or dead deals don’t necessarily spell doom for a business; for many contestants we spoke to, the publicity of appearing on the show ended up being worth more than the deal.
Shark Tank New Dat: Nick DeSantis, Forbes staff
About 43% of the people we spoke with said their deals didn’t come to fruition after the show. They attributed this to sharks pulling out of the agreement or changing the terms to ones that didn’t work for them. Others canceled deals after getting term sheets that included unappealing clauses. And occasionally the deals ended amicably.
Another 29% of the people FORBES interviewed said the equity and investment amount offered on-air changed after taping — but they chose to take the deal anyway. They said that the changes often occur during negotiations or in due diligence, an investigation into a person or business before signing a contract.
Although our analysis was not exhaustive (FORBES was able to interview 74% of contestants who got deals on camera), the numbers suggest that some investors are less likely to change their deals after the cameras stop rolling. Mark Cuban, who by our count closes more deals than any other shark, changed the agreements he made on-air change only 12% of the time.
Design: Nick DeSantis, Forbes staff
ABC is transparent about the due diligence process and isn’t accountable for how deals pan out during negotiations. ABC did not return requests for comment by time of publishing.
We contacted as many of the 319 businesses as possible, but some refused to share how and if their deals evolved, and others simply did not respond. While the results aren’t comprehensive, this is the most complete record of how often deals change after taping and why that occurs.
The goal of entrepreneurs going on Shark Tank is to make a deal and see it close. But if it falls apart, it’s not always a tragedy. About 87% of the businesses we spoke to that didn’t get deals are still operating. The remainder have shuttered, were acquired or sold.
Matt Canepa and Pat Pezet appeared on season four of Shark Tank to pitch their company Grinds, which sells chewable coffee pouches. They agreed to give Daymond John and Robert Herjavec 15% equity for $75,000. However, the deal died in negotiations.
“Pat and I went on the show 100% wanting to get a deal,” Canepa said. “Regardless of whether or not you get the deal, there are a lot of success stories.”Design: Holly Warfield, Forbes staff
In 2012, before their episode aired, Grinds made about $300,000 in sales. The month their segment premiered, the company saw $330,000 in sales.
Grinds brought in $1.35 million the year their episode aired, and have watched that number rise. This year, they are expecting do over $4 million.
Grinds isn’t alone. Nicholas and Alessia Galekovic, cofounders of the grooming accessories company Beard King, made an agreement with Lori Greiner during season seven last year. But around the time they filmed their episode, business took off, and the deal no longer met the needs of the company.
Design: Holly Warfield, Forbes staff
The agreement broke down in negotiations. But in the year after the episode aired, the company did around $700,000 in sales. This year, they are expecting over $1.6 million.
“I think that [Shark Tank is] absolutely amazing,” Nicholas said. “For anyone considering trying out or going for it: It’s well worth it.”
We were invited to participate last season and now the show is a huge success. It is a great premise, 3 venture capitalist personally product test new outdoor adventure products. Talk about Shark Tank, last season they tested a new shark repellent device in the ocean with school of real mean looking sharks, giving new meaning to the term “wetsuit” for one of the capitalists. These guys are crazy and a lot of fun. Check out the show here http://cnb.cx/2eezoKK
They are looking for all types of outdoor products including but not limited to; camping, hiking, adventure, recreation, outdoor transportation, off roading, renewable energy, survival, etc. I suggest you watch the show and present accordingly. Here is the link to apply www.AdventureCapitalists.com
Harry Wants Women
What a dream come true for the right women, Harry Connick Jr. is looking for women inventors with a great story to tell for his new daytime talk show. This is great exposure! Here is a link to the talent search http://bit.ly/2ddYLZb and here is a link to the show’s website https://www.harryconnickjr.
Dave Yonce Show
Below is the information they sent me about the show. Unlike most product hunts, shows are looking more for personality. Their guide lines are an education in themselves that everyone should read.
Asylum Entertainment and a major cable television network known for its loud, creative content is on the hunt for American entrepreneurs with well-developed concepts or prototypes for new inventions. To be considered, the invention must solve a problem, make a job more efficient, or make life more fun. Areas of interest include, but are not limited to, electronics, weapons, outdoor recreation, adventure, home products, automotive, and power tools.
If selected to appear on the program, Oklahoma-raised inventor and entrepreneur, Dave Yonce, will invest money and time into you and your product, developing it into a working prototype, and in some cases, partnering with you to build your business.
For more information, email: Casting@tikicasting.
Thank you in advance!
Contacting companies for the first time can be scary and uncertain for Inventors. You want to do it right and get the company interested in your product and see it on store shelves. My invention submissions have resulted in licensing deals in toys, tools, eyeglass products, kitchen utensils, and even a device used in the nuclear industry. I did it spending less than $100 on each and some as little as $8. I utilized an NDA and Sell Sheet only, no patent or PPA. My major investment has been my time.
I have been a serial Inventor, a licensing agent and reviewed thousands of Inventor’s products. In short, I see and hear all sides of the inventing process. What I’ve discovered is sometimes inventors can be their own worst enemies. Here’s a list of do’s and don’ts when it comes to submitting pitches or new products to companies that can help you make a better first impression:
1. Don’t send hand-written submissions. Even if you don’t own a computer most libraries have one you can use for free. If a library isn’t an option, go to a FedEx Office (formerly Kinko’s). If you send your submission via snail mail, include a self-addressed stamped envelope. Don’t assume your target company will pay postage.
2. Do put your contact information on each piece of paper you send. That includes samples and prototypes.
3. Don’t waste a product reviewer’s time detailing how you came up with your idea. Focus on the benefits of your product/technology and why it will make the company money. Companies don’t care if your second cousin twice removed worked on your project for two years once he got out of prison.
4. Don’t use the phrase, “My idea is worth millions.” Let the company decide that.
5. Don’t use the phrase, “There is nothing else out there like my idea.” Most of the time you will be wrong.
6. Don’t say you have researched your product idea thoroughly when all you did was walk into a Walmart and didn’t see it on the shelves.
7. Don’t use the phrase, “Everyone will buy one.” This gets back to being realistic about the size of your market. Know who the target customers are. (See Rule #6)
8. Don’t send a prototype to a company unless they asked you to and are expecting it. Companies do not want to keep track of or be responsible for items they did not request in the first place.
9. Do be realistic about your expectations. Understand licensing royalties usually are about 2% to 5%. Greed can kill an otherwise profitable deal.
10. Do read and re-read everything a company sends you to make sure you understand everything in the documents. Don’t assume everything is fine and sign it. I send people my two-page non-disclosure agreement to read and sign prior to sending me anything for review. I have to include in my email an explanation to make sure they fill in their address on the top of the first page, because so many people don’t do it. This is in the first two paragraphs of the first page. So, if they are missing that what else are they missing in a longer document?
11. Don’t write a novel to explain your invention. Be concise and factual. No one wants to read a novel to get your idea. Be able to explain your invention over the phone or in person in 30 seconds or less. Practice your pitch until you can say it in your sleep. Look at the short blurb on the back of a book. It gives you an overall idea of the 300 page book. Your pitch needs to be that short.
12. Make sure you know your product. You should be the expert on your product. Never assume companies will just “Get It.”
13. Don’t send your submission to a company on Monday and call Tuesday to ask when they will be sending you a contract.
14. Do your research before submitting anything to a company. Make sure your submission actually fits their target market. Don’t submit a lawnmower idea to a soap company.(this happens more than you think)
15. Don’t send your invention submission in care of the general bulk mail of a company. Get a specific person’s name in charge of that department – new product development, marketing, inventor submissions, inventor relations, etc. Don’t send “To Whom it may concern.” The most likely place it will find is the trash basket.
16. If you call a company asking for the person in charge of invention submissions, make sure you are ready if you’re put through. This is not the time to forget pen and paper or fumble your pitch. If you get voice mail, leave a short intelligent message with your call-back number.
17. Make sure you know the time zone difference of the location you are calling.
18. Don’t send a company any package that has special storage requirements, contains a live animal or flammable liquids. Real example: An Inventor sent his new food-sealing device with samples of food sealed inside. It was not opened until a week later, by security due to the smell of the leaking packages.
19. Don’t send a company anything you can’t afford to lose. Accidents happen and things can get misplaced. If it’s a one-of-a-kind item, you may want to send a DVD or link to a video showing the product in action. If you post it on Youtube and you have not filed for any patent protection make sure it is set on Private and not Public.
20. When sending email attachments to companies, do make sure it is in a program they have installed on their computers. Not everyone has Filemaker Pro or Microsoft Office 2016. Ask if the company has a size limit on attachments. Moreover, some software automatically kicks out any email with an attachment that is not on a safe email list.
The more you do upfront to make sure you are prepared the better your chances of success.