There are a variety of funding methods for producers and manufacturers, the most famous of which is direct debts that are paid with interest, and then other methods, such as proprietary funding, whereby the owner will give up a share of the company to the funder in return for a fee that would be used to raise the rate of production, expansion or innovation, amongst other things.
But this is not without obstacles, as direct funding requires guarantees up to the mortgage of some assets, and proprietary funding isn't suitable for newcomers who don't have strong financial statements and opportunities for expansion or success that attract investors. The solution has appeared across several platforms in the US and Europe such as KickStarter and Indiegogo and is pre-order funding.
You have an idea for a product that is not available in the market, you made prototypes or even a final product, but in insufficient quantities? And if you don't have the necessary cash for manufacturing and marketing, you can display it on one of these platforms. The product will be offered at a competitive price and for less than its price when it is presented in the market in the future. It is possible to add some advantages such as adding a souvenir to the buyer as a gift or putting his name in the credits if it is a digital product such as games.
Select the amount you want to collect and the unit price. Many unique and exotic products were popular on these platforms and received very large pre-order quantities due to their popularity amongst customers, who provided the necessary cash to the owner of the product to carry out the manufacturing process and then delivery to the customer.
Now the producer/manufacturer has an idea of the demand for the product, the net profits that could help him put the product directly into the market, as well as marketing and advertising for the future.
From the many projects that were funded, successes ranged from funding or development to the production of other projects, and some of the products later became best sellers on Amazon. One of the biggest success stories is Oculus, which introduced VR glasses for funding, then later got acquired by Facebook.
So far, we haven't found such a platform in our Arab world, and its presence may be a way to accelerate the launch of many innovative products locally.
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