5 Crowdfunding Lessons for Hardware Startups
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Time to read: 4 min
Crowdfunding is tough. From developing and managing the campaign, to choosing a manufacturer, to staying on-time and under-budget–it’s a lot to manage, especially for young companies.
I’ve launched two crowdfunding projects for PocketLab—a wireless sensor for makers and STEM educators—and have learned a lot in the process. Here are five crowdfunding lessons for hardware startups (based on my own experience) to help you develop, launch, and deliver your product as smoothly as possible.
1. Don’t Underestimate Schedules
The most common mistake I see companies make (ours included) is the underestimation of how much time something will take. Whether it’s mechanical design, firmware development, or setting up distribution channels, you should always adhere to the Rule of Pi: that everything takes 3.14 times longer than you plan for.
Behavioral economist Daniel Kahneman calls this the Planning Fallacy.
The problem is that most often, engineers and founders give planning estimates based on every step of the process going perfectly. Here’s an example of my perfect planning estimate:
- One week to do the CAD design
- Three days to get the 3D printed parts
- Two days to sand, prep, and paint the models
- Mechanical mockups done in 2 weeks!