“Quirky” Entrepreneur Makes Over $90 Million Off Other People's Ideas

The Quirky website was founded by a 24-year-old with a great idea. Since the website's publication in '09 New Yorker, Ben Kaufman managed to raise $91.3 million (€70 million) in investments, Yoda reports.

The concept behind this start-up is offering inventors a platform to make use of their ideas, by offering funding and product implementation.

Kaufman came up with the concept for Quirky when he was only 21, and his hot start-up had already pulled in over $20 million (€15,4 million) in investments until August 2012. "Social Product Development," as Kaufman calls it, captured the attention of venture capitalists.

According the Business Insider, the recent participation of Kleiner, Perkins, Caufield & Byers, along with that of now board member Andreessen Horowitz, meant another $60 million for young Kaufman.

Anyone can join Quirky and post their idea for a product for $10 (€8). Readers choose the best one, and the product is developed and sold at retail stores.

Other users can get involved in the design stage or comment on your idea, which could help you improve it. Some even help with concept drawings, while others suggest marketing strategies.

The products that result from this creative process are also sold on the website. Commitments to buy are a vital part of this process, as the users' products are only manufactured after having proven marketable.

Over 260,000 people have put their ideas forward so far, helping Quirky launch over 200 products.

The site is not based on the concept of investors buying the idea from you, but offers a share of the profit instead. So far $2 million (€1,5 million) in royalties have been paid out.

This is not the only way, but, as the blurb on the Quirky website says, it's “the easiest way to bring your ideas to life,” if your ideas require huge amounts of money to be invested in R&D.