It’s a definitive audit process; approval from Christie Street is all-or-nothing. “Our perspective is that the customer purchasing does not possess the expertise to judge whether a design’s production targets are trustworthy,” explains Siminoff. “The solution is to establish a reliable platform for purchasing.”
Christie Street remains engaged even after granting initial approval. Funded projects receive their financial backing in stages, with funds held in escrow. Inventors obtain one-third of the funding upfront, another third once they achieve a production-ready prototype, and the final third when they reach the golden prototype stage, indicating readiness for full-scale manufacturing.
Should the project falter at any point, Christie Street will terminate it and return the remaining funds to investors.
What qualifies as a failure? Siminoff outlines four specific criteria.
First, an inventor may declare an inability to complete the project for any reason.
Second, if the project exceeds a six-month delay, this requirement encourages greater care in meeting delivery timelines, according to Siminoff.
Third, if the product fails to meet promised specifications—such as delivering a pre-production sample that’s over 15 percent inferior to what was guaranteed—manufacturing will not be permitted. For instance, if a claim for 512GB results in a delivery of only 256GB, it would be rejected.
Lastly, Siminoff notes that additional intricacies will be addressed as the platform evolves. For example, significant redesigns may lead to fundholdbacks. “Design is challenging to quantify,” he admits, “but it’s essential that the design aligns with customer expectations.”
For the exceptionally cautious, Christie Street offers an extra layer of protection. For 10 percent of their pledge value, backers can insure their entire investment, ensuring a full refund if the project encounters issues. Coupled with a promise from inventors that the product will retail for at least 10 percent more than the pledge, investors can choose to accept a discount for some added risk or pay the full retail price with a money-back guarantee.
In essence, Christie Street operates in a unique space between crowdfunding sites like Kickstarter and Indiegogo, which place the onus of due diligence on backers while allowing inventors the freedom to innovate, and platforms like Quirky, where business elements are managed internally.
Christie Street aims to redefine trust by addressing the complexities of post-industrial product design. Instead of imposing an outright ban on renderings and early concepts or adopting an unrestricted ‘anything goes’ stance, they focus on mitigating risks associated with production missteps, particularly in prototyping and manufacturing. This approach leaves the evaluation of a product’s appeal to public opinion while addressing the feasibility of its production.
This model includes a more hands-on involvement between inventors and the platform compared to what you’d find on Indiegogo or Kickstarter. Siminoff believes they can maintain a competitive 5 percent fee due to the higher dollar value of physical product projects from the outset. “If everything proceeds smoothly, we anticipate handling 10 to 15 projects monthly within a year,” he says, “and we believe we can achieve profitability in the product sector.”
“We’re not looking to reduce inventors to mere names attached to products,” Siminoff emphasizes. “We want them to remain entrepreneurs and oversee their creations, all while ensuring that they don’t fail in a manner that negatively impacts customers.”