FinTech Module 5 Assignment
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Module 5 Assignment - Crowdfunding from Investor's POV
Identify the campaign(s)/project(s).
The crowdfunding campaign projects I chose to invest in are Kneeflow: Knee pain relief in 15 minutes or less, Shelfy: a smart device that will make your food last longer, reduce bacterial load, and remove bad odors from your refrigerator, and Salt Stone: The Naturally Cleanse Respiratory Airways. Provide your reasoning for your selection.
I chose to prioritize my campaign project investing in the Health and Fitness industry because as an athlete, I have learned to understand the importance of proper recovery and a healthy eating lifestyle. One of the specific needs of athletes includes meal prepping of healthy vegetables and meats. Therefore, it is important to have a product to keep such produce fresh and long-lasting while also saving their clients money with fewer trips to the grocery store. In addition, long and strenuous practices and workouts create muscle aches and a higher risk of injury. Therefore, this investment will help speed up the recovery time with effective equipment that allows people to return to physical activity at a faster rate. Also, I found it important from a breathing perspective how the Salt Stone allows for the air to be more cleansed so the lungs can be clearer and forced breathing during exercises results in more efficient breathing styles. By investing in each of these
innovative tools, athletes and individuals heavily involved in fitness can utilize them for better lifestyles and reap certain health benefits at a much more affordable price.
What is/are your benefit(s) in investing in this
crowdfunding campaign(s)/project(s)?
Investing in these three products, although they are all within the Health and Fitness industry, still provides a pretty diversified portfolio within each product's specific function category. Knee
flow works with electronic recovery equipment, Shelfy is categorized within nutrition, and Salt Stone focuses more on cardiovascular medical equipment. This can be highly beneficial for investors as their investments are more balanced in case of potential failure of a specific product.
Each of these investments creates great benefits to reach a larger audience -specifically the individuals heavily invested in fitness and health- gain publicity and expansion for continued brand exposure for investors and capitalize on the different sections within the largely distributed
health industry. By investing in Kneeflow, investors gain a new innovative product that saves their clients time and money from other inefficient products. It also works to provide pain relief to individuals struggling with different inflammation issues or injury recovery. This also allows individuals to be more hands-on and in control of their recovery process while simultaneously building a deeper relationship with the brand. In addition, investing in Shelfy provides a low-
price, laboratory-researched product that can help expand the lifetime of healthy vegetables and fruits within their client's fridge. With the success of this product, clients can save money on groceries and have a sustainable technological innovation that works to enhance food quality, limit odors, and protect the market from food waste. Lastly, investing in Salt Stone allows investors to expand their focus into more internal immunity, highlighting the product that cleanses the natural process of breathing and opens the lungs through the utilization of microscopic salt particles. This is recommended by doctors and wellness practitioners with the
client's best interest in mind. Rather than resorting to prescription drugs, Salt Stone is more cost-
efficient, natural, and has limited side effects for the consumer. Ultimately, the crowdfunding of these items allows investors to test their products in the market and validate these ideas thoroughly to help build long-term credibility and expand their publicity. What is/are your risk(s) in investing in this crowdfunding campaign(s)/project(s)?
Nevertheless, with the many benefits of the crowdfunding campaign products selected, there are also many risks associated with each. Regarding all three, there is the risk of product failure which in turn will not meet the needs of the consumer and hinder production and investor profits from continuing. For Kneeflow specifically, there is the risk that inflammation and injury recovery will not see progress and clients will have to resort to either other competitive products or professional services which are far more expensive. For investors, this can greatly cost the product/company from a reliability standpoint, trust between consumers and the product, and sustainability of the product. Regarding Shelfy, there is the risk that healthy foods do not respond
positively to the fridge addition and maintain the original timeline of life before they become moldy. This is the fourth product they have created and while the company has worked to eliminate the kinks and prior issues, investors must remain aware of the risk that something could still go wrong, and clients would no longer support the product. If the product is faulty, it will not be able to sustain its overall goal of reducing the amount of food waste released and investors could face backlash and profit losses. This could also force them to move into other competitive products, pushing back the progress they made with their initial investment. Finally, with the Salt Stone, there is the serious implication that individuals who rely heavily on more filtered air are not receiving the treatment and means they were promised. This has one of the more serious risks as this affects people's immune health which ultimately affects how they live their everyday lives. Some serious profit losses and legal consequences could be implicated for investors if the product is unable to meet the needs of clear congestion, immunity boosting, and increased blood oxygen. Investors must also be cautious of broader risks including ones created when the product is exposed to the public on different websites. Because of this, other competitors in the health and fitness industry can easily access the product idea and alter it, resulting in stolen ideas and intellectual property theft. This could create major financial issues from patents, profit losses, and long-term sustainability and growth. There is also the risk of tax obligations, regulatory and compliance risks, and limited fundraising opportunities or exit options. It is important investors fully understand the risks associated with their investments to ensure they meet personal, company, and clientele needs.
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