What is Kickstarter?
Kickstarter is a
crowdfunding platform that enables entrepreneurs, artists, and creators to raise funds for their projects by appealing directly to the public. Established in 2009, Kickstarter has revolutionized the way ideas are funded by allowing individuals to contribute to projects they find compelling.
How does Kickstarter work?
Creators set a funding goal and a deadline for their project. To incentivize
backers, creators offer various rewards based on the level of contribution. If the project reaches its funding goal within the specified timeframe, the money is collected, and the creator moves forward with the project. If the goal is not met, no funds are collected, and the project does not proceed.
Validation of ideas: Successful funding can demonstrate market interest and viability.
Access to a
global audience: Creators can reach potential backers worldwide.
Funding without giving up equity: Unlike traditional
venture capital, backers do not receive ownership stakes.
Marketing and exposure: A well-run campaign can generate significant publicity and brand awareness.
All-or-nothing model: If the funding goal is not met, no funds are collected.
High competition: Many projects are vying for attention, making it difficult to stand out.
Fees: Kickstarter charges a fee of 5% of the total funds raised, plus payment processing fees.
Commitment to backers: Failing to deliver promised rewards can damage a creator's reputation.
Creative works: Films, music albums, books, and visual arts.
Technology and
innovation: Gadgets, software, and hardware products.
Design: Fashion, accessories, and consumer products.
Games: Board games, video games, and tabletop games.
Plan thoroughly: Research similar projects, set realistic goals, and outline a clear timeline.
Create compelling content: Use high-quality images, videos, and descriptions to showcase your project.
Engage your audience: Communicate regularly with backers and potential supporters through updates and social media.
Offer attractive rewards: Design rewards that provide value and appeal to your target audience.
Leverage your network: Reach out to friends, family, and industry contacts to build initial support.
Pebble Time: A smartwatch that raised over $20 million.
Exploding Kittens: A card game that raised over $8 million.
Coolest Cooler: A cooler with various features that raised over $13 million.
Oculus Rift: A virtual reality headset that raised $2.4 million before being acquired by Facebook.
Conclusion
Kickstarter has become a vital tool for modern entrepreneurs and creators, offering a unique way to fund, validate, and market their projects. While it presents challenges, a well-executed Kickstarter campaign can lead to significant opportunities and success.