Crowdfunding Campaign a Success Despite Falling Short of Goal

Mike Gonzalez April 20, 2013 Comments Off on Crowdfunding Campaign a Success Despite Falling Short of Goal

One crowdfunding benefit that’s cited often is crowd validation. A successful campaign that generates buzz and builds an audience not only proves the concept to the entrepreneur behind the campaign, it also makes investors’ jobs easier.
After all, a company or project that has already experienced success, however small, and managed to generate income in the form of pre-sales is a safer investment than one whose concept is untested. Mark Cuban, in fact, has said that crowdfunding should be a requirement for every startup. 
One recent crowdfunding campaign showed, however, that even a not-so-successful campaign can still gain enough traction to convince an investor to support a company.
That’s what happened to Oogave, a soft drinks company based in Denver. Oogave first came to be in 2005, when Esteban Anson decided to offer a quality, organic soft drink in his restaurant that didn’t contain processed sugar or high fructose corn syrup. The soda, which is sweetened with agave nectar, proved popular with his patrons, and Anson decided to expand operations in 2009.
Oogave has been well-received, appearing in stores and restaurants nation-wide. This is especially impressive considering its competition – the company claims that Pepsi and Coca Cola each sell as much pop in 20 seconds as Oogave sells in a year. But, nearly four years on, the company ran into financial difficulties and decided to crowdfund in order to keep operations running.
The soda company’s co-founders launched a flexible funding campaign on Indiegogo with an ambitious goal of $500,000 (to date, only seven projects have raised over half million dollars on the crowdfunding platform).
The campaign raised only $10,000, which Oogave will receive because its founders chose the ‘keep it all’ option. But that probably won’t keep the company afloat for too long.
What could help Oogave survive, however, is a bridge loan that the company was

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