Starting up a company is not an easy feat. An estimated 80%–90% of start-ups fail within the first five years. Competition is fierce, and the lack of market space and investment means that, without the right team, brand positioning and extensive market research, there is slim chance of long-term success.
In a survey, start-ups revealed money was the second top reason for failure, market space being the first. Whilst lack of investors continued to be a problem, the country’s tax system and lack of bank lending were some of the other financial challenges. Faced with these legalities and red tape, it is no wonder that crowdfunding has been a popular choice for start-ups to build funds.
Crowdfunding offers start-ups the opportunity to raise funds, reward their backers and gain brand advocates at the same time. It allows the start-up to test out their marketing strategy and to gain validation that their product will be successful.
Kickstarter, GoFundMe and Indiegogo are just some of the websites that are helping start-ups make a name for themselves. On our search for the next innovation, we’ve spotted three new companies that are in the midst of their crowdfunding campaigns. Let us know what you think about their innovations on our Twitter page.
Neutonic from Delta X Labs
Delta X Labs are a US company based in San Francisco, which is currently crowdfunding for its functional beverage, Neutonic.
Neutonic is a “brain drink” filled with “nootropics”, which are supplements that, according to the brand, help sustain brain cognition, clarity, memory, and focus. Delta X Labs reveal that Neutonic differs to other nootropic supplements on the market because of its drink format and because it contains a higher quality nootropics per serving than any other supplement. The brand also claims to publish all of their ingredients and their weights on every label, something which some other supplement brands do not.
Delta X Labs are hoping to raise $15,000, which will go towards the manufacturing costs to produce Neutonic in larger quantities.
Matcha drink from Grünli
Grünli is a Swiss-based company looking to raise 3,000 Swiss francs for their on the go matcha drink. Created and produced in Japan, the drink is a simple mix of water and 100% organic matcha powder.
The bottle is fitted with a patented bottle opening technology, meaning that the drinker twists the cap to release the matcha into the water. After shaking the bottle to mix the ingredients, the drink is ready for consumption.
The start-up sees the drink as “tradition in a new guise” and hopes it will answer the demand for a healthy soft drink of the 21st century. With no sugar, additives or preservatives, the drink has an expiry date of seven months. The team plan to use the funds to help pay for production and shipping of their initial orders.
ArtBrew – Automated Craft Beer Home Brewery
ArtBrew is a young company from Los Angeles, California that has created what it believes to be the “smartest, highest quality, automated craft brewing system”. The team was looking to raise $100,000 to fund mass production but has already beaten its target, with a current total of $447,389.
The ArtBrew makes craft brewing at home easy. Complete with smartphone app, the user can select a recipe, insert ingredients, press start and be drinking their own beer in one week.
The team revealed that the ArtBrew is fully customisable and community-integrated, meaning the user can share their experience and recipe with other users.
In a brief comparison, the team revealed that the ArtBrew out competes its competitors in brewing and app specifications as well as price, coming in at $1,000 cheaper: the ArtBrew retails at $589 but its competitor Brewie costs $1,599.
© FoodBev Media Ltd 2019