Kickstarter

Kickstarter is a platform for crowdfunding. It was first introduced in late April 2009, by co-founders Yancey Strickler, Charles Adler, and Perry Chen. Kickstarter became one of the most successful crowdfunding platforms, making it easier for individuals and organizations to fund their creative projects.

Kickstarter works by using a crowdfunding strategy, which enables individuals or organizations to raise money for their creative projects. People with creative ideas who do not have the funds to back their projects seek funding from other people who are willing to support their ideas. Once the project garners enough funding, the creator can proceed with their venture.

The process of using Kickstarter is relatively simple. First, one must upload their project to the website. The project then goes through a review process to ensure that it meets the platform’s standards. Projects must fall under one of 15 categories, including art, comics, crafts, dance, design, fashion, film, food, games, journalism, music, photography, publishing, technology, and theater.

After the project is approved, the creator sets their funding goal and the campaign duration. Typically, Kickstarter campaigns run for 30 to 60 days. During the campaign period, people who are interested in the project can back the creator by pledging money towards the project. The creator rewards backers with incentives that range from access to exclusive content or gifts, to limited edition versions of the finished product, depending on the amount they pledge.

If the project reaches its funding goal within the given time, the creator receives the funds. The amount collected by the creator is usually more than what would have been possible through traditional methods of fundraising. Kickstarter funding is not a loan, and there is no obligation on the creator to repay the backers. However, if the project does not reach its funding goal, the creator does not receive any money, and backers are not charged.

Since its inception, Kickstarter has facilitated over $4.4 billion of pledges across more than 178,000 projects. The platform has made it easier for small businesses and individual creators to raise capital without going through the traditional means of borrowing from banks, seeking venture capital, or selling shares to investors.

The success of Kickstarter has led to many other crowdfunding platforms sprouting up in recent years. However, Kickstarter remains one of the most popular crowdfunding platforms, and it has become a household name among creative entrepreneurs. Kickstarter has become a marketplace for ideas, and it is still one of the best places to showcase new and innovative products.

One of the notable Kickstarter successes is Pebble Watch. Pebble Watch, a company that dealt with smartwatches, raised over $10 million from Kickstarter. Within a year, the company delivered its product and went on to become one of the pioneers in the smartwatch market. Other successful Kickstarter projects include the Oculus Rift.

While Kickstarter has helped many people turn their creative ideas into reality, it also has its downsides. The platform faces a lot of criticism regarding scams and fraudulent campaigns. These fraudulent campaigns take advantage of the platform’s popularity to raise funds for nonexistent products, creating a strain on the platform’s reputation.

In conclusion, Kickstarter has become an excellent way for both established businesses and entrepreneurs to raise capital for their projects. The platform’s success can be attributed to its ability to reach a vast audience of potential backers interested in investing in unique and creative ideas. As more people turn to crowdfunding as an alternative source of capital, Kickstarter and other crowdfunding platforms will continue to experience significant growth.