US crowdfunding site Dragon Innovation incorporates seed funding in campaigns

By VCPOST Staff Reporter

Jan 28, 2014 01:03 AM EST

Crowdfunding site Dragon Innovation will offer a $100,000 seed investment to any project that closes $1 million from the supporters of its crowdfunding campaign, according to Bloomberg Businessweek.

The Massachusetts-based launched a crowdfunding site last fall to help gadget manufacturers secure funding for their projects. For a $5,000 fee and a 5% share from the funding, Dragon helps entrepreneurs go through the process of manufacturing electronics. Now, Dragon is adding the seed funding as another pitch for the project makers, the report detailed.

According to spokeswoman Beth MacDonald, more than a dozen mechanically related startups have favored the site over more popular companies such as Indiegogo and Kickstarter. However, none of them have hit the $1-million mark yet, the report stated.

Compared with other crowdfunding sites, Dragon is more hands-on with campaigns. The firm assists projects from protype state to finished product. The offer of a seed investment to the top fundraisers could give the company a more lucrative interest in gadgets that people really want to spend their cash on, Bloomberg Businessweek reported.

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