Kickstarting a Brand

Using Crowdfunding to Launch a Brand

Eda Sanchez-Persampieri , Marie Segares

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208796.0054
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Abstract

After splitting with his long-time business partner John Grimes is seeking a new entrepreneurial venture. He is unsure of the direction to take in terms of product development but is confident his entrepreneurial mindset will lead him to a successful idea. After a significant amount of research and sampling, John creates an apparel product with a great marketing story. He does not have the resources to self-fund (bootstrap) his idea and attempts to obtain investor funding. He pitches his idea to several investors, but each scoff at the feasibility of it. As a last-ditch effort, he decides to use the crowdfunding platform, Kickstarter, to obtain funding and launch his idea. He sells nearly $300,000 of merchandise in less than thirty days to more than 5,500 customers or, in Kickstarter parlance, “backers.” His innovative concept breaks all apparel funding records on Kickstarter but what did this mean? Can John build a scalable company around his innovative idea? Or was this just a one-off project?


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