I Ran an Extremely Successful Crowdfunding Scam
On August 20th, 2012 a product called “Instacube” was nothing more than a rendering. By the evening of August 21st, Instacube had raised over $100,000 in it's first day on Kickstarter and earned over 3,000 media hits.
Savannah Peterson, the head of Marketing for a Silicon Valley product design firm engineered the campaign. That evening, Instacube had graced the front pages of Mashable, TechCrunch, Engadget, CNET, and virtually every influential tech publication. After one week Instacube had exceeded their goal of $250,000. After one month they had raised over $620,000. Savannah and her team were excited about the future of their product.
A year later, zero units have shipped. Not one backer (including Savannah) has received their Instacube. Savannah severed ties with the company and now lives in New York where she pretends that Instacube never happened... until her phone rings with another angry call from a backer looking for an Instacube.
Savannah is ready to tell her story.
Additional Supporting Materials
- Does crowdfunding make it TOO easy for would-be scammers to take advantage of backers?
- What can be done to help police crowdfunding campaigns?
- Where is the line between selling "vaporware" and gauging the interest of a market? How can backers easily identify vaporware versus a working prototype on kickstarter?
- What should backers look for when contributing to a Kickstarter or other crowd funded campaign to make sure that they don't lose their investment? Who is really responsible for campaigns that don't deliver?
- How can I raise over half a million on kickstarter?
Tom Miale Funnler.TV
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