Creative funding for your next big idea...

As a Patent Attorney, I frequently have inventors and entrepreneurs asking if I can help them obtain funding for their idea. Because this is such a frequent topic, I thought I'd post about a relatively new method ( a few years old) of obtaining funding--it is known as "crowd funding."

Crowd funding has been a game changer for entrepreneurs and garage inventors. Gone are the days of needing venture capitalists (VCs) or heading to the bank for a loan. Those methods work great, but they carry quite the burden: what if you get the funding, have the product made, and then find out no one wants the product? Or, what if the interest rate on the loan is so great, that by the time you begin getting good revenue, you can't seem to get profitable? Or worse, what if the VCs decide to oust you as the CEO of your own company?

Worry no more! Sites like Kickstarter.com and Indiegogo.com have stepped up and taken entrepreneurs to the next level. I would encourage you to peruse these sites and see the kind of money that changes hands. It can be from a few thousand dollars, to a few million dollars! And best yet, it not only reduces the market risk, but it is completely interest free! Yep, interest free. Briefly, it works like this:

1. You come up with a good idea/product
2. You make a video and pitch your idea (usually with a rough prototype or illustrations)
3. You ask for a certain amount of money (e.g., $10k) to be raised in around 30 days. 
4. To reach the goal, you ask people (online) to donate money--no strings attached. They don't retain an interest in the company, nor do they get money or interest; they donate simply because they like the idea. It is typically $5, but lots of people giving you $5 goes a long way. Don't believe people will just donate money? Visit the sites and see for yourself!
5. You also ask people to pre-order your product. This takes the risk completely out of the picture. You'll know whether or not there is a market for your idea before you ever produce it.   
6. If you get the money you asked for within the time-frame (usually about 30 days), money changes hands and you begin making and shipping product. If you don't reach your goal, no credit cards are charged and no money changes hands. In other words, strategy is important here. You need to be able to cover the manufacturer's minimum order, but you also need to get funded. 

Lastly, it is important to note that patent protection should be sought before your idea is published online. This not only protects you in the U.S., but overseas as well. Otherwise, you not only potentially lose the ability to obtain any patents outside of the U.S., but you also run the risk of having someone take your idea and patent it before you do...leaving you with nothing. 

Give my office a call today to setup a free consultation to discuss your next big idea, how we can protect it, and then how we can get you funding. I've had clients successfully obtain funding using these methods, so why not join them? Call today! 435-634-8854

Robert A. Gurr

Patent Attorney
www.gurrbrande.com