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Here's The Harsh Truth About Wearable Technologies And Crowdfunding


Posted in Mobile Health by Arundhati Parmar on July 2, 2014

The wearables market is hot but there is a disturbing truth about funding wearable crowdfunding campaigns that people need to know.  


Wearable technologies is a hot space, and entrepreneurs have eagerly tapped into the throngs of Internet denizens to crowdfund their creations. 

In general, crowdfunding refers to inventors and entrepreneurs using an online website to raise small amounts of money from strangers promising to deliver either the product or some other service or award in a certain time frame to the person making the investment. 

You have the Pebble Smartwatch project that was famously able to raise more than $10 million through crowdfunding site Kickstarter last year, making it the most successful crowdfunded campaign on that site

CrowdFund Productions, a consulting and events firm, decided to analyze 300 wearable crowdfunded projects on Kickstarter and indeigogo crowdfunding sites between 2011 and 2013 to create this nifty infographic below that summarizes its findings. 

But the final conclusion is also perhaps the most disturbing. None of the projects delivered their product on time. In fact overall delivery rates of wearable devices are low. It would seem that entrepreneurs are more than ready to tap into investors' pockets but not that conscientous about fulfilling their end of the bargain.

Here's the infographic from CrowdFund Productions:

[Image Credit: iStockphoto.com user exdez

-- By Arundhati Parmar, Senior Editor, MD+DI
arundhati.parmar@ubm.com

 


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