Last week’s post on Misfit Wearables, the company that’s raised nearly $500,000 for its new activity tracker from a crowdfunding campaign, is just one illustration of what can happen when a lot of people each give a little bit. Everything from open data to reconstruction bras for breast cancer survivors is now finding early stage funding by tapping into populations of patients, advocates, doctors and researchers, each willing to give a little bit.
Wondering if a project you’re working on is a good fit for crowdfunding? In a Saturday morning Twitter chat, health crowdfunding site MedStartr‘s Alex Fair joined others in sharing observations about successful projects in healthcare. The chat started with the question: Which was more important when deciding whether to contribute to a project, the idea or the founder’s reputation?
A1&A2 Two of our best videos and ideas failed because the founders had no reputation established with the Right audience. #ideachat
— MedStartr (@MedStartr) Dec. 8, 2012
A1: The two things I would look for are mission and balance.Reputation is tough if new and ideas are many.#ideachat
— Jay M. Oza (@5ToolGroup) Dec. 8, 2012
A1: The reputation of founder or participants in the crowd funded project is important. In my healthcare examples, it was. #ideachat
— Jon Mertz (@jonmertz) Dec. 8, 2012
A1: Interesting though, in projects I participated in outside of healthcare, the creative nature of it played a bigger role #ideachat
— Jon Mertz (@jonmertz) Dec. 8, 2012
A1 TrendsWeC: #1 video has to engage #2 audience (reputation) has to give activation energy #3 the idea – all 3 reqd’ in that ordr #ideachat
— MedStartr (@MedStartr) Dec. 8, 2012
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
@MedStartr – Credibility and context can matter – if it isn’t on the side of the owners, needs to be with the major investors #ideachat
— Bradley Woody Bendle (@wbendle) Dec. 8, 2012
Reputable founders are behind numerous recent examples of successful health crowdfunding campaigns, like the ones waged by Misfit Wearables‘ repeat entrepreneurs and patient advocate Regina Holliday.
But even if the project leaders aren’t particularly reputable, they can still win by telling a good story through text, photos and videos. Take, for example, the Milwaukee family who raised more than $20,000 through Indiegogo for 11-year-old Kaiden’s brain cancer treatment this way.
The story is a must. RT @blogbrevity: RT @pammoran: A1 ….want a convincing story of the person if I dont know them#ideachat
— Jon Mertz (@jonmertz) Dec. 8, 2012
Successful start ups are more movements than companies.#Ideachat
— Saul Kaplan (@skap5) Dec. 8, 2012
A2. A great story and great storytelling. A poor story, well told, or a great story poorly told won’t cut it. Emotional engagement #ideachat
— Andrew Marshall (@DrewCM) Dec. 8, 2012
Or they tap into existing movements RT @MicJohnson: THIS RT: @skap5: Successful start ups are more movements than companies.#ideachat
— MedStartr (@MedStartr) Dec. 8, 2012
In healthcare there is generally a story that relates to someone’s experience to gaps in care & unmet needs #ideachat
— LeAnna J. Carey (@thehealthmaven) Dec. 8, 2012
A2 In part of my biz our suppliers are on @itunes & ya figure out real fast if the crowd likes it. Don’t forget pic sells a story #ideachat
— Nelson Jacobsen (@sonofnels) Dec. 8, 2012
When it comes to what not to do in a crowdfunding campaign, the chat participants emphasized the need for a clear, focused, not overly technical idea communicated to a specific audience.
A3: for us: Bad science, exaggerated marketing, no reputation, bad communication skills,… we can help fix all but the first 1 #ideachat
— MedStartr (@MedStartr) Dec. 8, 2012
A3 Dont be to technical for common understanding. Emotion sells.Focus on benefit idea will bring rather than minutiae of process #ideachat
— Bryan Armstrong (@bryancarguy) Dec. 8, 2012
A3: Failed projects oftn have gr8 products, good comm skills but fail to bring or build an audience that cares – Storytelling key #ideachat
— MedStartr (@MedStartr) Dec. 8, 2012
A3. The other challenge with startups is that they are addressing so many needs simultaneously. Funding a single idea is easier #ideachat
— Andrew Marshall (@DrewCM) Dec. 8, 2012
And, of course, choosing the right platform to reach that audience is crucial. While Health Tech Hatch and MedStartr host a variety of health-related projects, cureLauncher is more research-based while Indiegogo covers a more mass consumer market.
A4 Needs assessment is impt in the selection of a feasible crowdfunding platform & purpose as well #ideachat
— Gia Sison MD (@giasison) Dec. 8, 2012
A4 Platform Selection – Success rate for projects like yours.Traditional self-service CF does not work so well for Healthcare.. #IdeaChat
— MedStartr (@MedStartr) Dec. 8, 2012
A4:cont: that is why we are not just a CF platform, but an #AcceleratorPlatform bringing Partners and providing #FullService#hccf#IdeaChat
— MedStartr (@MedStartr) Dec. 8, 2012
