Startups That Thrived Through Crowdfunding

January 23, 2025 FF News

Crowdfunding has transformed the way startups can access capital, allowing entrepreneurs to skip traditional funding routes like venture capital and bank loans. By tapping into the power of the crowd, many startups have raised millions, launched innovative products, and built passionate communities of customers. In this article, we’ll explore some of the most inspiring success stories from the crowdfunding world, highlighting how these startups used platforms like Kickstarter, Indiegogo, and others to grow their businesses and achieve massive success. 1. Oculus VR – From Idea to Multi-Billion-Dollar Acquisition One of the most well-known success stories in the crowdfunding space is Oculus VR. Founded by Palmer Luckey, Oculus started as a small project to create a virtual reality headset. In 2012, they launched a campaign on Kickstarter with the goal of raising $250,000. The response was overwhelming, and Oculus raised over $2.4 million—far exceeding their original goal. The success of Oculus’ crowdfunding campaign helped them gain attention from investors, which ultimately led to a $2 billion acquisition by Facebook in 2014. Today, Oculus has revolutionized the VR industry and continues to lead the market with innovative products, showing how crowdfunding can catapult a startup into the mainstream and attract massive investment. 2. Pebble – The Smartwatch Pioneer Pebble Technology is another startup that owes much of its success to crowdfunding. In 2012, Pebble launched one of the first-ever smartwatch campaigns on Kickstarter. The company set out to raise $100,000 to develop its smartwatch, but the response was so strong that they ended up raising over $10 million—making it one of the most successful crowdfunding campaigns at the time. The success of the Pebble smartwatch helped establish the wearable tech industry, and Pebble became one of the most recognized names in smartwatches before being acquired by Fitbit in 2016. Pebble's campaign demonstrated that crowdfunding could help bring innovative technology to market, even against industry giants like Apple. 3. Exploding Kittens – A Game-Changing Card Game Exploding Kittens, a quirky card game created by Elan Lee, Shane Small, and Matthew Inman (the creator of The Oatmeal), is one of the most successful Kickstarter campaigns in history. Launched in 2015, the game set out to raise $10,000 to fund production, but it raised a staggering $8.8 million by the end of the campaign, becoming the most-funded game on Kickstarter at the time. Exploding Kittens became a global phenomenon and was quickly picked up by major retailers. The success of the campaign proved that crowdfunding could not only support creative projects but also turn them into global entertainment franchises. 4. Coolest Cooler – A Kickstarter Sensation and Cautionary Tale In 2014, Coolest Cooler launched a crowdfunding campaign on Kickstarter that became one of the most funded projects at the time, raising over $13 million. The product was a high-tech cooler that combined a blender, Bluetooth speakers, USB charger, and other features into one portable unit. Although the campaign was a massive success in terms of fundraising, the project faced significant challenges in fulfilling orders, leading to delays and production issues. Despite these hurdles, Coolest Cooler remains one of the highest-grossing crowdfunding campaigns ever. This story serves as both a success and a cautionary tale about the challenges of scaling up after a successful crowdfunding campaign. 5. Skydio – Leading the Drone Revolution Skydio, a startup specializing in autonomous drones, raised $25 million in Series C funding in 2019, but its roots trace back to its successful crowdfunding campaign. In 2015, Skydio launched a campaign on Indiegogo to raise funds for its innovative drones, which offered cutting-edge autonomous flight technology. The campaign was a huge success, giving the company the capital it needed to advance its product development. Today, Skydio is one of the leading companies in the drone industry, with its drones being used by both hobbyists and professionals worldwide. Skydio’s journey highlights how crowdfunding can be used to propel technology startups into an industry-leading position. 6. Fidget Cube – A Simple Toy That Captivated the World In 2016, the Fidget Cube campaign on Kickstarter became an instant success. The small, handheld toy was designed to help people with anxiety and stress by providing a tactile experience that kept hands busy. The original goal was to raise $15,000, but the campaign went on to raise over $6.4 million, thanks to its viral popularity. Fidget Cube’s success highlighted the power of crowdfunding to launch simple yet highly marketable products. It also demonstrated how social media and word-of-mouth can create viral success for crowdfunding campaigns, even for products that might not have seemed groundbreaking at first glance. 7. The Microplane Grater – An Everyday Product That Went Global A more humble success story comes from Microplane, a company that had been making professional-grade graters for years before launching a crowdfunding campaign for its kitchen tools. The campaign on Indiegogo helped Microplane reach an international audience and led to partnerships with major retailers. Microplane’s success demonstrates how even everyday tools and products can benefit from the exposure and capital that crowdfunding offers. The platform helped them scale their business beyond its initial niche market, making their graters a staple in kitchens around the world. 8. Lumo Bodytech – Revolutionizing Health Tech with Wearable Devices Lumo Bodytech created a wearable device that helps users improve posture and movement. With the help of crowdfunding, Lumo raised over $200,000 to fund the development of its products. The campaign was a success, and Lumo quickly gained attention from investors and health professionals. The company went on to expand its product line and has helped thousands of people improve their posture, thus positioning itself as a leader in the health tech industry. Lumo’s story illustrates how crowdfunding can give rise to health-focused startups with transformative potential.