Actual data and information is the only way innovators could convince investors that their product or service is a viable and growing investment. For long term plans, crowdsourcing is an efficient way to drive up a startup’s capital cost. With great information on hand, startup companies could experiment with different approaches, products and costs in allowing their innovative edges to grow.
Investors want to know the feedback from the public regarding an innovative new product. An orange-flavoured beer product is absurd, but with crowdsourced information that proves the innovative flavour is something that can sell, considering the demographic to ensure that entrepreneurs have hit their marks, innovation could have a chance to flourish. A few more adjustments will be needed to ensure that a product or service finds its “sweet spot” in the niche market, and its overall potential in the mainstream market.
2. Actual Data
Feedback is actual data, but performance and feasibility information could be driven by crowdsourcing. Online gaming companies have made use of this strategy by implementing “free to play” periods for their beta versions of games. Collecting information and feedback from the communities interested in such games, introducing innovation can rock or smoothen the product or service without harm to the brand or the sales.
3. Multiple Data Sources
To ensure the transparency of information collected, crowdsourcing provides an opportunity to access multiple audiences to ascertain the innovative product or service’s capacity to deliver its return in profit. Make it clear how these different sources could receive benefit from the startup’s products and service, and see the real returns the innovative idea could have.