The most valuable part of crowdfunding is not the “funding” part. As more innovators are coming to realize, an enormous benefit of crowdfunding sites like Kickstarter is proving product viability.
But why isn’t funding still the most important?
Because if you had the proof-of-concept or viability alone, you can use that to get funding. And the product development funding or investment you would receive can be better than supporter pledges. That’s because Kickstarter pledges lock you into a specific concept and create a potential public relations nightmare if you are not able to develop the product, fulfill pledges on time, and have the product meet supporters’ expectations.