How to Launch a

Successful Hardware
Kickstarter Campaign
An exclusive guide with insider tips from a manufacturing company that has
firsthand experience in more than 20 crowdfunding initiatives

Jaycon Systems
2018
Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1 | Understand your customer . . . . . . . . . . . . . . . . . . . . . . . . 5

2 | Create a marketing plan . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3 | Plan the pre-prototyping phase . . . . . . . . . . . . . . . . . . . . . . 7

4 | Build a realistic pre-production prototype . . . . . . . . . . . . . . . 7

5 | Choose a manufacturer prior to the campaign . . . . . . . . . . . . . 8

6 | Draft a legitimate budget . . . . . . . . . . . . . . . . . . . . . . . . . 9

7 | Implement the plan: Create interest before the campaign starts . . . 10

8 | Get lift-off within the first two days . . . . . . . . . . . . . . . . . . . 11

9 | Learn the metrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

10 | Take advantage of Kickstarter’s newsletters & sections . . . . . . . 12

11 | Don’t forget about shipping . . . . . . . . . . . . . . . . . . . . . . . 13

12 | Expect delays and plan for them . . . . . . . . . . . . . . . . . . . .14

13 | Successfully fulfill your campaign . . . . . . . . . . . . . . . . . . . 15

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

Jaycon Systems: A one-stop solution . . . . . . . . . . . . . . . . . . . . 17

A one-stop solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 2

Executive Summary
While there are similarities and differences between Kickstarter and
other crowdfunding platforms, certain characteristics make Kickstarter
attractive to entrepreneurs who are initiating hardware projects. For
one, Kickstarter is geared solely toward creative projects, while other
platforms allow fundraising for personal, organizational and other
causes.

Because it is a platform that promotes creativity, Kickstarter often

draws interest from backers seeking to support innovative, leading-edge
products. This has driven games, design and technology to become
the platform’s top-funded categories. At the same time, media outlets
aiming to inform the public about “the next big thing” in consumer
technology have also brought these categories more attention.

As the top-funded categories, games, design and technology boast the

highest number of projects to have raised more than $1 million each:
the games category has had 92 projects reach the $1 million mark, the
technology category has had 84 and the design category has had 95.

Yet, just featuring a project in one of the top-funded categories does

not mean success will come easy.

Approximately 36 percent of all Kickstarter projects have been suc-

cessfully funded. Technology projects, however, have just less than
a 20 percent success rate - the lowest of all Kickstarter categories as
of January 2018.

There is a wide range of components involved with conducting a

successfully funded campaign, including planning marketing efforts,
designing a realistic prototype, budgeting appropriately and selecting
a manufacturer that fits the project’s needs.

Kickstarter’s mission is “to help bring creative projects to life.” But

sometimes, entrepreneurs and engineers can use a few extra tips in
order to reach life beyond Kickstarter. With this guide, Jaycon Systems
aims to help campaign teams successfully launch their hardware
projects on the platform so they will have a better chance of bringing
them not only to life, but to market.

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 3

Introduction
As a hardware development company that launched in 2011, Jaycon
Systems has consulted and provided product manufacturing for more
than 20 hardware startups involved in crowdfunding initiatives.

Some of the initiatives were successful; others were not. The successful
campaigns amounted to a sum of about $1.5 million, but the lessons
learned from the failed campaigns were priceless. These experiences
have allowed company staff members to observe in detail what works
—and what is not effective—when it comes to Kickstarter campaigns
for hardware projects.

Jaycon has compiled this guide as a way to offer a firsthand account

based on the lessons learned. Case studies of well-documented
campaigns are also offered to help further illustrate the points. The
resulting 13 tips, presented below, offer a framework that can serve
as a guide for hardware startups launching a Kickstarter campaign.

“A lot of backers are rallying around their friends’ projects.

Some are supporting people they’ve long admired. Many are
just inspired by a new idea. Others are inspired by a project’s
rewards — a copy of what’s being made, a limited edition, or
a custom experience related to the project. Backing a project
is more than just giving someone money. It’s supporting their
dream to create something that they want to see exist in the
world.”

– From “Why do people back projects?” in Kickstarter’s Pressroom.

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 4

 The big picture view of
crowdfunding backers shows that
most are millennials. According
to a Pew Research Center study
published in 2016, approximately
22 percent of Americans have
backed an online crowdfunding
campaign. The largest portion—30
percent of those contributors—
were in the 18–29 age range, while
27 percent were between 30 and
49. Only 18 percent of backers
were in the 50-64 age range, while
eight percent were 65 and older.

1 | Understand your
customer
The first step in creating a successful Kickstarter campaign is to un-
derstand the characteristics of potential customers, including their
demographics, motivations and values. This step establishes the
foundation for the rest of the project.

CB Insights compiled and reviewed 101 essays written by people in-

volved with failed startups. The review determined that lack of market
need is the number one reason—of 20 observed in the study—that
startups fail. Forty-two percent of startups’ essays mentioned issues
related to lack of a market need. Failure in this area can be avoided
by understanding a product’s potential customers and their needs.

To identify a product’s audience, begin by developing a customer

persona, which is a fictional character that represents the user of a
product or service. More than one persona may be needed for each
product. The process of arranging customers into groups of similar
characteristics is known as market segmentation, and it will be key
to designing and implementing a marketing plan.

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 5

There are numerous free resources available to help entrepreneurs
craft relevant personas. One of the most popular tools is Xtensio per-
sona creator tool. In the process of creating personas, surveys also
go a long way in helping to understand potential customers and set
personal assumptions aside.

Additionally, Google Analytics and admin dashboards from social media

websites can be useful for analyzing a company’s audience. For startups
that do not currently have a large following, performing competitor
research can offer extra insights about similar potential customers.

2 | Create a marketing plan

The most successful campaigns tend to engage in marketing several
months prior to launching a Kickstarter campaign. Thus, once the
target audience has been defined, begin planning how and where to
reach them—even before the prototype is created.

Plan to communicate with future customers through the channels,

platforms, events and venues with which they are involved. Use pictures,
videos, studies, infographics and documentation to demonstrate the
product’s usefulness, creating and publishing this content based on
the marketing personas discussed in tip one.

Promoting a campaign prior to launching may lead to getting funded

early and successfully. Inc. has noted that to become successfully
funded on Kickstarter, a startup should have a significant following
prior to the campaign, which usually helps generate 30 percent of the
funding goal in the first seven days.

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 6

3 | Plan the pre-
prototyping phase
As with marketing efforts, entrepreneurs must carefully plan their pro-
totype to ensure that it is ready prior to the campaign’s launch. First,
make a list of the features and technologies involved in the product
and talk to a hardware development firm to analyze its feasibility.

When working with a prototyping firm, ask if they are aware of the pro-
cesses that can be used to design the product for manufacturing (also
This showerhead is an example
called DFM, or design for manufacturability). This will save valuable time
of a pre-production prototype
and money so no expensive revisions are needed at the time of production.
that Jaycon Systems designed
and prototyped. The unit was
If the product consists of plastics and there is any interest in manufac-
an exact replica of how it would
turing it by means of injection molding, refer to this engineering design
look like once manufactured. This
guide for suggestions about how to design for manufacturing (DFM).
prototype can assure Kickstarter
backers that their delivered
Remember that hardware projects are required to demonstrate proof
product will work and perform as
of a prototype before being approved by Kickstarter authorities. Al-
advertised.
though it is possible to design a campaign geared toward creating a
prototype, backer rewards for this type of campaign cannot include
offerings of products under development.

4 | Build a realistic pre-

production prototype
Constructing the prototype is often the most fun part of putting to-
gether a Kickstarter campaign, and since the aim of the campaign is
to build awareness for a project and get others to buy into the idea
or concept of the prototype, it is extremely important to have a well-
built pre-production prototype. Making informed decisions during
Jaycon provided design and
this stage will allow the campaign team to put its best foot forward.
consulting for Wearality prior
to their Kickstarter campaign.
A common mistake among hardware projects on Kickstarter is to over
The services included R&D,
promise with the prototype and under deliver with the manufactured
industrial design, mechanical
unit. Only include prototype features that can be carried over into the
engineering and product analysis
final manufactured product. To accomplish this, select a manufacturer
for Wearality’s engineering
to work with during the design of the prototype that can give feedback
team. Jaycon also made several
and guide production in the right direction.
3D printed and CNC machined
prototypes, and helped make
One of the worst-case scenarios for a Kickstarter campaign is to raise
a three-foot-large version of
money but not produce the promised product. Not only is that a setback,
Wearality’s virtual reality glasses
but backers and critics may question the credibility of the campaign
for a tradeshow booth. Wearality
and the company behind it. StoneTether offers a clear example of
went on to become successful and
what can happen when a campaign loses its credibility. Described as
raise over $100,000 on Kickstarter.
an “extremely small/thin and easy to use” wireless tracking device,
the product garnered $366,199 in pledges when the goal was $15,000.
After failing to send out the product to backers, many accused the
campaign of being a scam.

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 7

5 | Choose a manufacturer
prior to the campaign
Work with an experienced manufacturer prior to launching the campaign in
order to know what is feasible and what to promise backers. Waiting until
the campaign is funded to pick a manufacturer for mass production may
throw a curveball on the budget—and it may concern project supporters.

Scaling to meet the demand of overfunded projects leads to a common

manufacturing dilemma in Kickstarter campaigns. Because technology
is one of the platform’s three top-funded categories, with a number
of projects surpassing the $1 million mark, this is an important issue
“Manufacturing often happens
for hardware entrepreneurs to consider. One study of the top 50 most-
overseas, so having a partner
funded projects on Kickstarter found that 84 percent shipped late.
that you can trust in delivering
your product is the most critical
The makers of Twine, for example, set a $35,000 goal in order to produce
aspect. As your business grows,
200 units of a Wi-Fi-connected sensor device. The project raised well
your manufacturing partner will
over $550,000, bringing the number of units needed to about 4,000,
share in that growth. Things like
fifteen times more than its original goal. After deciding on a plan for
cash flow, production issues,
mass production, the project shipped several months late. Because the
inventory and logistics all become
company’s manufacturing partners were located in the United States, the
intertwined. Make sure you build
company was able to avoid communication and logistics problems that
the relationship into a trusting
many hardware startups have faced working with overseas manufacturers.
one because it’s one of the most
important business relationships
Oculus Rift is another well-known example of a project that initially
you’ll need to be successful.”
set out to produce a product by hand, then had to adjust once back-
ers pre-ordered more units than expected. While price is often an
attractive feature of working with overseas manufacturers, startups
that have not had prior involvement with them might find it to be a
-Nanoleaf CEO Gimmy Chu
daunting experience. Aside from the time difference, communication
can be a challenge, and coming to terms on a price is often not a
straightforward process.

As part of a multifaceted service approach, Jaycon Systems has onshore

and offshore manufacturing capabilities with offices in Melbourne,
Florida and also in Shenzhen, China—providing customers with great
communication and cost-effective manufacturing.

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 8

6 | Draft a legitimate
budget
Doing research before putting together a campaign budget will help
startups avoid one of the most common reasons for failure: running
out of cash. According to a CB Insights mentioned earlier in this guide,
running out of cash is the second most common reason startups fail.

Manufacturing costs make up one of the most pertinent budget

categories in Kickstarter campaigns for hardware products. Injection
molding may sound expensive over 3D printing, but when it is time
to make 1,000 units, the cost per unit will decrease tremendously
by paying some upfront mold costs. Startups that set out to do the
manufacturing themselves should consider whether making thousands
of units will be worth their time—and their team’s sanity. It is often
more cost-effective to let a manufacturer make the parts while the team
focuses on running the campaign.

Prototypes printed on 3D printers have become popular because they

are fast and inexpensive for small quantities, but this method is not
sustainable for mass production.

Injection molding, blow molding, thermoforming and extrusion are

among the popular methods to mass produce plastic parts. All of these
methods require some form of tooling or molds to be set up prior
to production. After the tooling is built, then large quantities can be
produced quickly and efficiently. Tooling, NRE or setup charges, pro-
duction, packaging, shipping, and customs all need to be considered
prior to the production.

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 9

As an effort to help customers plan their hardware project better,
Jaycon offers an online injection molding quoting tool that provides
instant tooling and unit costs even if the customer doesn’t have a 3D
file of their part.

In 2015, the Jaycon team met the founder of a company that

made 3D printers. After spending several days discussing
how Jaycon might help the company with their manufactur-
ing needs, Jaycon did not win work with the company—but
continued to follow its story closely.

The company had a successful Kickstarter campaign, pur-

chased its own manufacturing equipment to assemble its
own circuit boards and bought new laser cutting machines to
cut its own plastics. Ultimately, the company failed to deliver
to all of its Kickstarter backers and ended up selling off
the equipment because they overspent with equipment and
underestimated overhead and operating costs. This was very
likely due to the fact that the company tried to do its own
manufacturing.

7 | Implement the plan:

Create interest before
the campaign starts
As stated in tip two, planning is an important part of creating interest
before the campaign starts. When it is time to implement the market-
ing plan, present the product idea to the target audience to create
hype and gather valuable feedback straight from future customers.

Publish content, launch social media campaigns and attend trade

shows. Also, consider adding traditional public relations components,

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 10

such as publishing press releases for an opportunity to get featured
on mainstream news channels.
“Create your following before you
Build a list of tech bloggers and YouTube channels and email them launch. Traveling to six Maker
information about the product. YouTube vloggers are notorious for Faires prior to and during our
demonstrating new products in their videos, and many startups find this second campaign helped for
type of outreach affordable. The cost for this effort typically involves sure to spread the word. Sending
only the cost of the product itself and what is needed for shipping. out email blasts leading up to
the launch is helpful so those
The story of Maker Pipe highlights the importance of pre-campaign interested will be prepared. Give
marketing. The company launched a Kickstarter campaign in 2015 with them the opportunity to be ready
a $100,000 goal. That campaign was unsuccessful, but the company for the ‘early bird’ deals.”
launched another campaign in 2016 that was successful. To improve
the second campaign’s odds, Maker Pipe traveled across the country
to Maker Faires, lowered their fundraising goal to $10,000 and regularly
updated their social media pages. -Kelly Schlitter, Co-founder, Maker
Pipe

8 | Get lift-off within the

first two days
People follow success and fear uncertainty. When potential backers
see that a campaign is successful, they will be more likely to follow,
promote and back it. However, if a campaign is not successful, back-
ers tend to wait for others to pledge first. Regardless of the campaign
category, it is important to get lift-off within the first 24-48 hours.

If the campaign’s marketing is planned in advance and interest is

created before the campaign starts—topics discussed in tips two and
seven—there will be a better chance of getting funded early.

Linjer’s 2016 minimalist watch campaign raised $100,000 in the first

hour and $965,758 in about one month. To help them accomplish this,
the founders read guides by Tim Ferriss, including one about Harry’s
collection of nearly 100,000 emails. The process included referrals and
rewards and is now available as a combination of resources on GitHub.

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 11

Another guide discussed how to raise $100,000 in 10 days using Soma
water company as a case study. The guide includes email templates,
spreadsheets, open-source code to build landing pages and a custom
dashboard to monitor Kickstarter and social media data as well as
press activity.

9 | Learn the metrics

One of the most important metrics to keep an eye on is the conversion
rate. This rate reflects how many people visit a campaign and back the
project, versus how many people visit a campaign and do not back
the project. Platforms such as Kicktraq can help monitor Kickstarter
campaign metrics.

Linjer’s 2016 minimalist watch campaign became successful early,

but their conversion rate during a pre-launch period was low. After
installing a chat app to communicate with potential backers, Linjer’s
founders learned that many backers had basic questions, even after
visiting the campaign page. They decided to revise the copy on the
page “so everything was crystal clear and people knew exactly what
they were getting into if they signed up.” In one night, the campaign’s
conversion rate went from 5 percent to 15 or 20 percent.

A low conversion rate may indicate that there is a need to revisit the
marketing plan and backer incentives.

10 | Take advantage
of Kickstarter’s
newsletters & sections
Newsletters:
Five different newsletters are listed on Kickstarter’s website, and getting
featured in one of them can have a big impact on a campaign’s fund-
raising goal. One review of 20 projects featured in a Kickstarter weekly
email indicated that the average amount raised in the day after being
featured increased approximately 150 percent. Further, the featured
campaigns raised 428 percent of their total funding goal on average.

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 12

Projects We Love:
When the employees of Kickstarter like a project, they have the power
The Jaycon team met with
to place it in the Projects We Love section. Landing in this area helps
Kickstarter’s tech outreach
campaigns by bringing them closer to the first page, or at least on
manager in San Francisco. She
Kickstarter’s top pages. Learn more about how to get featured as a
offered insight into how Projects
Project We Love or Project of the Day here.
We Love are picked. Kickstarter
team members are particularly
attracted to design-forward
Trending projects section: projects where form follows
Although not disclosed by Kickstarter, it is possible that the algorithm function, such as beautifully
for trending projects takes the conversion rate as well as the rate in designed tech gadgets, or
which the campaign gets backed into consideration. To boost traffic, mechanical pieces with a focus
aim to have several relevant sources backlink to the campaign. on aesthetics. This means that a
hardware programmer who has
thought about all the ins and
Just Launched projects section: outs of their project may want to
consult with an industrial designer
The first few days will bring more traction to a campaign because of
to enhance the project’s design
the Just Launched projects section. Use engaging images, clear de-
appeal.
scription, and invest in a high-quality video to keep people’s interest
during this time.

Nearly Funded projects section:

Kickstarter picks projects that are just about to reach 100 percent of
their funding goal for the Nearly Funded section in order to boost
performance.

11 | Don’t forget about

shipping
For hardware projects, always budget for shipping costs and be upfront
with the backers about whether or not it is included in the pledge.
Also, think of a standard policy in case backers do not receive a pack-
age even though it has been shipped. International shipping comes
with many restrictions. Customs will often hold a package until the
recipient pays a huge import tax, for example. Backers don’t always
know about this tax and might expect the campaign team to pay for it.

Additionally, fulfilling crowdfunding campaigns differs greatly from

fulfilling orders from regular e-commerce websites because several
months may have passed since the time a backer made a pledge and
entered their shipping address. This means that the campaign team
should email backers a several days before shipping in order to verify
their backer’s current mailing address.

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 13

 Even when a Kickstarter campaign
video suggests that a company
has everything under control, that
may not be the case in reality.
Jaycon has received emails weeks
after companies have told backers
they are in production. Be upfront
about your campaign’s production
status. The transparency can save
time, money and your company’s
reputation.

After launching in July 2014 and raising $13 million, the record-setting
campaign for Coolest Coolers experienced a series of delays after the
campaign ended. Things became more complicated when, in the spring
of 2016, the company suggested that backers who had not yet received
the product pay an extra $97 for expedited shipping even though they
had already made a pledge. That was after the company placed the
product on Amazon to try to raise additional funds for production.
After an April 2016 campaign update that included the shipping cost
suggestion, many Coolest backers became angry, and some even made
physical threats to the company’s staff members.

12 | Expect delays and plan

for them An independent survey of 500,000
Kickstarter backers showed
Delays will occur despite a campaign team’s careful planning and that approximately 9 percent of
budgeting. Add time to the delivery schedule and expect them. The Kickstarter projects fail to deliver
Kickstarter approval process alone can take up to three weeks, but rewards.
there are several other points at which campaigns might experience
speed bumps.

As mentioned in tip 11, Coolest Cooler’s Kickstarter campaign involved

several delays and complications. In one update to backers, the com-
pany revealed that development and manufacturing of the cooler
required more financial resources than it had originally expected.

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 14

There were also unanticipated manufacturing delays and a strike at
the manufacturer.

In a June 2017 update, some backers were notified that they may have
to wait three more years to receive the product. The company noted
that the three-year time frame was part of an agreement with the
Department of Justice in Oregon, which had been investigating the
company after backers filed complaints about suspected fraud and
the shipping delays.

To avoid manufacturing delays, which are common with Kickstarter

projects that receive more pledges than expected, be sure to execute
tip five and find a trustworthy manufacturer ahead of time.

“Respond to comments and

messages ASAP. People thank us

13 | Successfully fulfill your

all the time for being on top of it.
They have let us know that’s not
the norm and it’s appreciated.

campaign Also, do updates when you can

and keep people in the loop. We
have had a lot of speed bumps
Be prepared for the work that starts once your Kickstarter campaign
along the way but people are
has been successfully funded. Then comes fulfillment, which includes
much more understanding if you
finalizing the product and shipping it to backers. As discussed in tips
keep them in the loop.”
six and 11, a realistic budget for shipping and a logistical plan will
help with successful fulfillment.

Beyond taking care of the financial and policy aspects of fulfillment,

-Kelly Schlitter, Co-founder, Maker
the best thing a project team can do is to be open and communicate
Pipe
with backers. The people who made pledges are more likely to stay
supportive if they are regularly updated, regardless of whether the
news is positive or reveals setbacks.

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 15

Work closely with the manufacturer during fulfillment, but give them
the space they need to complete the project. They will most likely
have many different projects happening at the same time. As long as
the project team chose a manufacturer they can trust, the product
should be completed in a reasonable timeframe.

Conclusion
Jaycon has direct experience with dozens of amazing but unsuccessful
products that could have made it to market with better planning or a
more effective team. While a great idea is needed in order to become
successful, a dedicated team is what takes a product from being
good to being great. In fact, it is very common in the startup world
for investors to invest in teams, not products. Kickstarter campaigns
are no different.

In conclusion, a startup needs to focus heavily on the significant plan-

ning required for each stage of a campaign in order to have the best
chance of reaching fulfillment. Plan ahead to market the product, find
a reliable manufacturer and budget accordingly. Always under promise
and over deliver, and the product will have a greater chance of getting
into the hands of those who need or want it.

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 16

Jaycon Systems:
A one-stop solution
Jaycon Systems is an all-inclusive manufacturer that offers a full range
of services required as part of a Kickstarter campaign. At Jaycon, we walk
our clients through the manufacturing process from concept design
and prototyping, to product manufacturing, packaging and fulfillment.

Our product development and design services include full product

design, firmware and hardware programming, prototyping, 3D printing,
and industrial and CAD design. Our mass production and manufactur-
ing services include injection molding, circuit board assembly, box
assembly, packaging, and order fulfillment.
This data logger designed by
Jaycon Systems is a result of the
Our experience can support campaigns in a variety of industries,
collaboration between electrical
including consumer electronics, educational technology, electronic
engineers, mechanical engineers,
toys, home automation, marketing and multimedia, pollution sensing,
firmware engineers, and industrial
space exploration, virtual reality and many others.
designers — all available to
Jaycon’s clients once a project has
Get an instant injection molding quote on our website, or email us
started.
at hello@jayconsystems.com with any questions about our design,
manufacturing, or fulfillment services.W

How to Launch a Successful Hardware Kickstarter Campaign | By Jaycon Systems 17

JAYCON SYSTEMS LLC

801 E Hibiscus Blvd Suite B

Melbourne, FL 32901
www.jayconsystems.com