For months, investors have talked about how crowdfunding is changing the hardware investing landscape.
The theory goes that the advent of Kickstarter and Indiegogo allow companies to test product-market-fit in a notoriously challenging category. And the numbers suggest there may be something to this: Venture investing in hardware companies increased 233 percent from 2007 to 2013 according to CrunchBase.
Anecdotally, there’s another corollary trend in how investors are backing hardware companies. It goes something like this: hardware company raises a seed round; hardware company launches a crowdfunding campaign; hardware company raises more money; the amount of which is directly based on the crowdfunding success.
That’s how things felt at least but the trend was 100 percent anecdotal — apart from feeling like it was real, I had no data to…
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