startup businesses get their products on the market faster -->
But he's leaving this fundraising to online, not to the banks or venture capital. In a growing movement called crowdfunding, entrepreneurs make video pitches to consumers to help get their projects to market. It all comes down to whether the amount of donations meet the startup company's funding target and deadline.
Chipperton is putting his MyFocus Solution product on the U.S.-based crowdfunding platform Kickstarter, which launched in
"If you don't make that threshold number, the project doesn't get funded and you go about your business," said Chipperton, CEO of
Chipperton described his product as a "little force field of solitude" to help people get their work done without electronic distractions.
In essence, MyFocus uses software to put messages and calls in a "holding pattern" on cellphones, laptops and tablets for up to two hours with no ringing or buzzing or alerts, he said. Consumers can download the app for their smartphones and tablets or plug a small device into their computers.
"It's a transaction. You put money down and you get something back."
Even with Kickstarter taking a five per cent fee for successfully funded projects, Chipperton said it's still better terms and conditions than he would get from a bank, investment firm or private equity funding.
Consumers are charged a processing fee of three per cent for pledges of
Kickstarter, launched in 2009, and says 4.9 million people have since made pledges totalling
"Basically, it's like a marketing launch," said CEO
Black Sumac is taking pledges up to
Ure said venture capital firms watch crowdfunding and successful campaigns help establish credibility for potential investment.
"It's not the amount. It's the speed," said Richardson, who teaches at the
Kash Pashootan, a vice-president and portfolio manager at First Avenue Advisory, a
As a result, Canadian startups are often forced to sell their business to a larger company, said Pashootan.
Called the FWD Powershot, backers will get the product as a reward for a donation of
"The less we need to borrow, the better we feel," said Quattriuum president
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