VAIL (AP) Robin Behrstock and partner Ryan Stecker are trying to fill a need. But first, they need capital. For that, the pair are trying a new idea crowd funding.
The partners who founded iZen, which produces bamboo computer keyboards and iPad stands are using a new website that brings together fledgling companies and small investors interested in helping them.
Investors can contribute just about any small amount, but those who contribute $85 receive a keyboard, a discount from the suggested retail price of $99, plus $11 in shipping.
Under the old laws regarding small-investment funding, products were the only way companies could reward investors. But a new law passed by Congress and signed into law April 4 by President Barack Obama allows startups to offer equity in their companies. The law also allows startups to raise up to $1 million a year without much in the way of disclosure.
The iZen founders have more modest goals. In the current pitch to small investors on www.kickstarter.com, the partners hoped to raise $18,000 in 31 days. If the company didnt hit that goal, investors credit cards wouldnt be charged.
But investors like the idea of a keyboard that claims to be made of 92 percent bamboo other components can be recycled, and the bamboo itself can be composted or will degrade in a landfill. With several days left in the funding period, iZen had raised more than $21,000.
When the funding period is over, iZen will be able to pay for a new round of production. After that, the company may be able to show traditional lenders theres a demand for its products.
That seems to be the case at a couple of local retail outlets the Bookworm of Edwards and High Country Computer Services, also in Edwards.
People look at them and say Thats cool! High Country Computer Services co-owner Karen Allen said. Its a unique, environmentally friendly product.
At the Bookworm, Kelli Kostroski said the keyboards have been well-received.
Its beautiful, Kostroski said. People see it and say theyd like to own one.
But it took more than displays at a couple of stores to gin up enough interest in iZen to make the latest money-raising effort successful.
Behrstock said the company put out word about the Kickstarter effort through Facebook and Twitter, as well as tech-related and environmentally friendly websites including www.treehugger.com and www.grist.org.
Behrstock said iZen probably wont use any more crowd-funding as it moves from startup to started, but shes a big fan of the idea.
So many other companies can use it, and so can nonprofits, she said. There are a lot of other ways to use crowd funding.