Recently, I was browsing a robot’s crowdfunding website on the internet. The robot called JIBO. The website said the JIBO is the first social robot for the home in the world. The JIBO can track face, capture photos, and enable impressively video calling. It can hear the natural language, learn your preference to adapt and fit into your life; it can using a speaker to help you to make everyday simpler and easier. You can Pre-pay 749$, then you can get the JIBO and inclusive of battery and charging plate, with the SDK available for developers.

Family Robot JIBO nears $1.7M During Final Day on Indiegogo

https://www.youtube.com/watch?v=3N1Q8oFpX1Y

What is Crowdfunding

Crowdfunding is the financing of a project or a venture by a group of individuals instead of professional parties.Crowdfunding is a new internet-based method to raise capital – pool small amounts of money from individuals. The approach is attractive to entrepreneurs, because it not only allows raising capital for small businesses, which have very limited financing options, but also serves as a tool for testing marketability (Valanciene. L & Jegeleviciute. S, 2013). Anyone can start a content creation project with meet these criteria than raise funds to support it. One does not have to worry about the independence of the project because the content creator can completely control project. It is merely a platform and a resource. They do not participate in the development of the project.

Strengths

First, in the case of venture capital and angel investors, and investors on the company’s decision to significantly control. Crowdfunding is different – entrepreneurs do not need to give up that right. So, when a company’s capital is raised through fund-raising, entrepreneurs do not lose the right to decide their own company. Second, to raise funds through crowdfunding platform is very close.Most entrepreneurs do not qualify for venture capital, because they can not grow fast enough, there will not be a large potential public offering. Second, too few venture capitalists and entrepreneurs who need money the masses.Entrepreneurs seek through crowdfunding platform to raise capital was awarded the opportunity to test market. Raising whole mechanism is based on personal attraction, who found an interesting idea worthy of a large number of them to invest their time and attention. When funding portal announced a new idea or business model, to achieve the deadlines set fundraising goals often – some make-up and even surpass the goal, some do not.

Weaknesses

First, possible presence of their own business plans stolen. This risk is considered to be a weakness, because it is a feature of crowdfunding mechanisms – public display of ideas and business models is a must. Second, some companies may even be created as a fraud – Companies can order began to take funding to pay all salaries, and then shut down. Ongoing legislative reform is completely subordinate to crowdfunding, but does not apply to other means to raise funds. In addition, fund-raising is an Internet-based approach.Because Internet-based, it may make it more difficult for investors to determine whether issuers legitimate business.

Image result for crowdfunding Weaknesses

 

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Reference:

Valanciene. L & Jegeleviciute. S(2013), VALUATION OF CROWDFUNDING: BENEFITS AND DRAWBACKS, Kaunas University of Technology, http://mechanika.ktu.lt/index.php/Ekv/article/view/3713

 

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