Cinetics: Beyond Crowdfunding?

This case examines the opportunities, benefits, and risks associated with online crowdfunding, which allows entrepreneurs to finance the development of new products and build a community of customers. The case describes how the founder of a startup company came up with the entrepreneurial idea and leveraged Kickstarter to establish and grow his company. The case elaborates how crowdfunding facilitates a firm’s initial development, creates visibility, spread word of mouth, and drives initial sales. Students are expected to identity the roles of lead users, community involvement, and stretch goals in crowdfunding as a paradigm of open innovation. The case also poses an intriguing dilemma about how a crowdfunded company should move forward and grow big with alternative funding options. The case is mainly designed for use in masters’ level or upper division undergraduate class on Digital Business, Open Innovation, Strategic IT management, and Digital Innovation.