Lego Drones Bypass Crowdfunding

With spectacular failures to deliver promised products on time (Coolest Cooler) or at all (Zano Nano Drone) and with this statistic running at an average of 9% of all successfully funded crowdfunding campaigns, the Lego Drone guys decided that the wiser route would be to seed fund first.

The $1 million seed funding allowed them to develop the product, find and test the supply chain and be in a position to actually sell and deliver its product upon introduction.

It sold $1.9 million of product within 90 days and has sold more than 8,000 drones to date.


About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in accredited investor, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, drone, Funding Portals, Investments, Jobs, Legislative Intent, Small Business, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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