Pebble Raises $3 Million from 21,000 People in 5 Days. Is Crowdfunding the New Venture Capitalism?

Posted by Techvibes NewsDesk

Last week, we wrote that Pebble—a smartwatch developed by Canadian Entrepreneur Eric Migicovsky—raised $1 million from 7,300 backers in just 24 hours on Kickstarter. Then we went on to report that, by the end of day two, that number had doubled to $2 million from 14,400 backers. This, despite the campaign's original goal of only $100,000, and the fact that the campaign still doesn't end for over a month.

While the pledging has slowed somewhat, Pebble has now cracked the next major milestone: $3 million. It took only five days to reach this number, 5,000% of the original goal.

More than 22,000 people have pledged money to this company. Which begs a question: is crowdfunding the new venture capitalism? Would a VC have given this unproven startup $3 million? Even if so, the VC would have commanded a massive percentage of the equity.

Safe and reliable crowdfunding platforms such as Kickstarter provide a revolutionary new way for entrepreneurs to raise money in a low-risk environment that doesn't dilute company equity—creating win-win proposition that should certainly scare professional investors, who are suddenly looking rather antiquated.

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Techvibes NewsDesk

Techvibes NewsDesk

Techvibes is Canada's leading technology media property.Founded in 2002, Techvibes covers technology and business news that impacts Canadians. We combine breaking local news with international coverage to deliver a unique balance of insight and information. The Techvibes Newsdesk covers a broad beat and publishes general news stories. If you have a story you would like covered, email... more




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