Future of Sex
tagline
  • Remote Sex
  • Virtual Sex & Entertainment
  • Robots
  • Human Augmentation
  • Sex Tech
  • Dating & Relationships
  • Bizarre Bazaar 18+
  • Future of Sex Community
  • Remote Sex
  • Virtual Sex & Entertainment
  • Robots
  • Human Augmentation
  • Sex Tech
  • Dating & Relationships
  • Bizarre Bazaar 18+
  • Future of Sex Community
Hot News

A Day to Come: Imaging What Your Sexlife Might Be Like in the Not-To-Distant Future

Future of Sex is supported by our readers. When you buy through links on our site, we may earn an affiliate commission.

Home > Sex Tech > Is Equity Crowdfunding the Future of Sex Tech Investment?

Sex Tech
Home›Sex Tech›Is Equity Crowdfunding the Future of Sex Tech Investment?

Is Equity Crowdfunding the Future of Sex Tech Investment?

By Carolyn Stransky
March 14, 2023
1611
0

Experts explain the opportunities that equity crowdfunding campaigns offer sex tech startups.

Stigmatized by conventional venture capitalists (VCs) and financial institutions, it’s no surprise that sex tech startups have turned to crowdfunding as a viable option for raising funds.

While sex tech companies faced rejections from platforms like Kickstarter in the early 2010s, it’s becoming increasingly common to see a sexual wellness product marketed on crowdfunding sites. Indiegogo even had an “After Dark” collection featuring its sex tech campaigns. 

Over the years, we’ve reported on dozens of sex tech crowdfunding campaigns. Some products, including the kegg kegel trainer and bionic strap-on dildo Ambrosia Vibe, more than doubled its fundraising goal. Others were forced to close after failing to reach their targets, such as Arlan Robotics’ oral sex robot and Hybri’s mixed reality hologram partners. 

All of the above campaigns follow the model of democratized supply and demand. Anyone can put in money to back the initiative and show interest. In return, these people receive an early or discounted product version.

Now, we’re noticing a new trend in sex tech: Equity crowdfunding.

Through equity crowdfunding campaigns, companies raise money from the public and typically accept relatively small amounts of cash. Popular crowdfunding service WeFunder, for example, allows you to invest “as little as $100 in the startups and small businesses you believe in.” 

But, unlike traditional crowdfunding, these people won’t necessarily get a product in exchange for their contribution. Instead, they become public investors and receive a proportionate slice of the company’s equity. 

RELATED READ: The Sex Tech Companies Venturing Into Equity Crowdfunding

For this edition of the Future of Sex Expert Series, we wanted to talk to sex tech entrepreneurs who have been there. The types of crowdfunding campaigns (and the outcomes) may vary, but they all have thoughts on just how effective equity crowdfunding can be for sex tech.

We asked each of our experts: What do you see in the future of equity crowdfunding in sex tech?

Alexandra Fine, CEO and Founder of Dame

“Crowd equity has a powerful role in sex tech because institutions will always struggle to see the value of this taboo industry. Individuals are much more likely to put their money where their mouth is.”

In 2016, Dame launched Kickstarter’s first sex toy campaign for its finger-vibe Fin, making nearly eight times its original $50,000 goal.

Then, in 2017, Dame’s hands-free clitoral vibrator Eva became the most highly funded adult product in the history of online crowdfunding, raising $575,000 in just 45 days. 

Jeff Bennett, Founder and CEO of Morari Medical

Jeff Bennett, Morari Medical’s CEO and Founder

“The future of equity and rewards-based crowdfunding is very bright for both sex tech companies and non-sex tech companies. Crowdfunding provides companies with another investment option should they be challenged by traditional investment options. In addition, crowdfunding allows companies to build a community of current and future customers that can be advocates of your company and be a resource for help if needed. 

“We launched an equity crowdfunding campaign and look forward to working with the investors to help bring our product to market. These are motivated investors that are willing to help make their investment payoff.”

Announced in September 2022, Morari’s WeFunder campaign had raised over $600,000 at the time of publishing.

Val Elefante, Head of Community at Lips

“Equity crowdfunding has proven to be a viable solution to the challenges of fundraising that many sex tech companies face as a result of venture capital (VC) sexism and stigma against sex and sex work by investors, banks, payment processors, and all throughout the financial community.

“However, I think the irony is that equity crowdfunding campaigns—while extremely time and energy-consuming in the short term—actually boost, expand, and support businesses more in the long term than just receiving fewer larger institutional or singular angel investments.”

In November 2021, Lips raised over $87,000 through a WeFunder campaign. Read Elefante’s full response: How Equity Crowdfunding Campaigns Actually Give Voice to the Community

Patricia López Trabajo, Founder and CEO of MYHIXEL 

Patricia López CEO of MYHIXEL

“At MYHIXEL we have… been accepted for investments that at the last moment have backed out for reputational reasons, so, without a doubt, [equity crowdfunding] is an important and necessary resource to boost companies dedicated to the sex and sex health tech sector to achieve their goals…

“There are cases of well-known companies in the sector that have resorted to this type of investment and have been successful, such as Plátanomelón or MysteryVibe. So, in my opinion, equity crowdfunding has a long way to go in the sex tech and sex health tech sector.” 

In 2019, MYHIXEL raised $160,000 in 10 months via product crowdfunding campaigns on Indiegogo and Kickstarter. After this success, the sexual wellness brand launched another Kickstarter campaign in November 2022. At the time of publishing, that campaign had raised over €540,000.

Darren Smith, Founder of Pillow

“Funding for sex tech may move onto the blockchain. Globally, we have a new monetary system being born that sits alongside the fiat system: bitcoin, crypto, NFTs, and decentralized autonomous organizations (DAOs). The discrimination and difficulties that sex tech founders have wrestled with for years from the gatekeepers of a heavily censored system and programmed societal ‘norms’ are crumbling away faster than you can say ‘polyamory.’ 

“I see crowdfunding operating through a co-ownership model, tied to your crypto wallet, with NFT’s being used as social proof of your memberships, beliefs, and value system. I believe this to be the future we’re moving towards across the board, not just for sex tech.”

In 2018, Smith launched a WeFunder campaign for Pillow, but the company never reached its $110,000 goal. Read more about Smith’s experience: Shunned by Investors, Startup Turns to Equity Crowdfunding So Couples Can Have More Sex

Top image source: Pawel Czerwinski

Tagsfutureofsexexpert

Carolyn Stransky

Carolyn (she/her) is a queer software engineer and journalist based in Berlin, Germany. She's been reporting for Future of Sex since late 2020 and served as Acting Editor from April to November 2022. She's currently our Deputy Editor.

Beyond Future of Sex, Carolyn also writes about the intersections of technology and sexuality for outlets like Autostraddle, Curve Magazine and elsewhere.

You can find h... er most places on the Internet @carolstran.  
Previous Article

Sex Tech News: New VR Sex Game, ...

Next Article

The Future of Sex Is Non-binary Genital ...

Related articles More from author

  • 2021 predictions
    Sex Tech

    Sex Tech in 2021: What Industry Leaders Expect in the Year Ahead

    January 15, 2021
    By Jenna Owsianik
  • Sex Tech

    Navigating the Uncertainties of Sex Tech: Can Layoffs be Avoided?

    May 30, 2023
    By Carolyn Stransky
  • Multiple Sex Toys in a Circle
    Sex Tech

    The Sex Tech Industry Is Finding Stability After COVID Supply Disruptions

    October 21, 2021
    By Future of Sex
  • A man's hand shown holding a line of condoms.
    Augmentation

    Why ‘Set and Forget’ Male Birth Control Is Key to Overthrowing the Maligned Condom

    March 16, 2021
    By Bridgette Engeler
  • Couple kissing in bed.
    Dating & RelationshipsSex Tech

    7 Underreported Issues Affecting the Future of Sex

    July 27, 2021
    By Jenna Owsianik
  • An illustration of a space deck where the pilot would sit. The shift is instead shaped like a penis.
    Sex Tech

    Pleasure and Consent in Sex in Space

    June 21, 2022
    By Dr. Eleanor Armstrong

  • Remote SexRobotsSex Tech

    Sexual Telepresence: More Than the Sum of Our Parts

  • A white heart outline with an infinity symbol as part of the top design and the words "Dating & Relationships" appear over a green background.
    Dating & Relationships

    We Are Now Covering the Future of Dating and Relationships!

  • Dating & Relationships

    Should You Swipe Right on the Growing Trend? The Pros and Cons of Top Dating Apps

Virtual Lust is a 3D interactive sex game.
3DXChat
Discover the best virtual sex parties and 3D sex worlds.
  • TOP REVIEWS

  • Multiplayer Online Sex Games

    Review of the Best Massively Multiplayer Online Sex Games

    0
  • Harmony ai sex doll from RealDoll

    State of the Sexbot Market: The World’s Best Sex Robot and AI Sex Doll Companies ...

  • Realistic Sex Games

    Review of the Best Sex Games and Most Realistic Sex Simulators [UPDATED]

    0
  • Screenshot of a sexbot from adult entertainment game

    The Best Adult Games on Steam [UPDATED]

  • Screenshot of FeelConnect app future of interactivity intimacy available on Apple and Google Store

    The Best Sex Game Apps for Couples [UPDATED]

Fantasy sex game Dream Sex World lets you explore your wildest desires.
Multiplayer sex world Red Light Center continues to impress with its massive userbase and incredible sex graphics.
A blonde and light-skinned love doll face sppears next to the text Go now realdollxthe future is real.

Like Us on Facebook

Newsletter Subscription

Sign up for our monthly newsletter sharing the very best of the future of sex from our publication and others across the web.

DreamSexWorld offers a stunning XXX 3D world filled with incredibly interactive erotic experiences.

Like Us On Facebook

Facebook Pagelike Widget

RLC_ad_v2

Tweets by @FutureofSex
Future of Sex Report

Follow us

  • Home
  • About
  • ADVERTISE
  • Contribute
  • Story Ideas
  • Sitemap
  • Privacy Policy
  • Terms and Conditions
© 2011 - 2022 Future Exploration Network
This website or its third-party tools use cookies to improve user experience and track affiliate sales. To learn more about why we need to use cookies, please refer to the Privacy Policy.

By clicking the agree button or continuing to browse through the website, you agree to the use of cookies. Accept Privacy Policy
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities...
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
SAVE & ACCEPT