Kickstarter
Launch year: April 28, 2009
Country: United States
Tags:
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Funds raised: $10 Million

Kickstarter is a global crowdfunding platform

Concept description

Kickstarter is an American public benefit corporation based in New York and it maintains a global crowdfunding platform focused on creativity. The company’s stated mission is to “help bring creative projects to life”.

Value proposition

Kickstarter Overview

Project creators choose a deadline and a minimum funding goal. As a result, no funds are collected if the goal is not met by the deadline.

Backers from anywhere in the world and creators from many countries, can contribute to the projects and funds respectively.

Follow this link to access Kickstarter website.

Kickstarter Projects category

Firstly, Creators categorize their projects into one of 13 categories and 36 subcategories. They are: Art, Comics, Dance, Design, Fashion, Film and Video, Food, Games, Music, Photography, Publishing, Technology and Theater.
Of these categories, Film & Video and Music are the largest categories and have raised the most money. These categories, along with Games, account for over half the money raised. For instance, Video games and tabletop games alone account for more than $2 out of every $10 spent on Kickstarter.

As of June 2020, millions of backers invested more than $5.04bn in pledges to fund 488,148 projects. See below a table detailing the above statement:

Kickstarter

Fees Revenue

Firstly, Kickstarter applies a 5% fee on the total amount of the funds raised. Secondly, their payments processor applies an additional 3–5% fee. Kickstarter claims no ownership over the projects and the work they produce, however traditional crowdfunding platforms do. The web pages of projects launched on the site are permanently archived and accessible to the public. After funding is completed, projects and uploaded media cannot be edited or removed from the site.

There is no guarantee that people who post projects on Kickstarter will deliver on their projects, use the money to implement their projects, or that the completed projects will meet backers’ expectations. Therefore, Kickstarter advises backers to use their own judgment on supporting a project. Plus, they also warn project leaders that they could be liable for legal damages from backers for failure to deliver on promises. 

Project Guidelines

To maintain its focus as a funding platform for creative projects, Kickstarter has outlined three guidelines for all project creators to follow: creators can fund projects only; projects must fit within one of the site’s 13 creative categories; and creators must abide by the site’s prohibited uses, which include charity and awareness campaigns. Kickstarter has additional requirements for hardware and product design projects, such as the Banning the use of photorealistic renderings and simulations demonstrating a product or the Banning projects for genetically modified organisms

The guidelines reinforce Kickstarter’s position that people are backing projects and not placing orders for a product. Creators across all categories need to describe the risks and challenges a project faces in producing it. As a result, this educates the public about the project goals and encourages contributions to the community.

Illustration (Video)

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