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What is Kickstarter?
Kickstarter is a global crowdfunding platform that enables creators, entrepreneurs, and innovators to raise funds for projects by collecting small contributions from a large number of people. It has become one of the most widely used platforms for launching creative and product-based ventures.
Definition
Kickstarter is an online crowdfunding platform where project creators present ideas and receive financial backing from supporters, typically in exchange for rewards rather than equity.
Key Takeaways
- Kickstarter uses a reward-based crowdfunding model.
- Projects must reach their funding goal to receive collected funds (all‑or‑nothing model).
- It supports creative, artistic, and product‑driven initiatives.
Understanding Kickstarter
Kickstarter launched in 2009 and quickly revolutionised how creative projects get funded. Creators publish a project page outlining their idea, objectives, budget, timeline, and reward tiers for backers. Supporters pledge money in exchange for early access, exclusive perks, or product prototypes.
One defining element of Kickstarter is its all‑or‑nothing funding model—if the project fails to reach its funding goal, no money is collected. This protects backers and motivates creators to set realistic goals.
Kickstarter has helped launch thousands of successful products, films, games, and artistic works, including major consumer products that have gone on to global distribution.
Formula (If Applicable)
Kickstarter does not rely on a numerical formula, but success often depends on:
Crowdfunding Success Drivers:
- Attractive storytelling
- Clear project goals
- Engaging reward tiers
- Strong marketing and community engagement
Real-World Example
The Pebble Smartwatch began as a Kickstarter project, raising over $10 million and becoming one of the platform’s most notable successes.
Board games, tech gadgets, documentaries, and innovative home products often begin on Kickstarter before moving into mass production.
Importance in Business or Economics
Kickstarter empowers creators by reducing barriers to entry and providing access to capital without traditional financing. It democratizes innovation, enabling early market validation and reducing financial risk.
For businesses, it also serves as a testing ground to measure consumer interest before investing in production.
Types or Variations
While Kickstarter itself focuses on reward-based crowdfunding, related models include:
- Equity Crowdfunding (backers receive ownership)
- Donation-Based Crowdfunding (no rewards or equity)
- Peer-to-Peer Funding (direct lending models)
Related Terms
- Crowdfunding
- Fundraising Strategy
- Market Validation
- Product Launch
Sources and Further Reading
Quick Reference
- Core Idea: Funding creative projects through public contributions.
- Primary Mechanism: All‑or‑nothing reward-based model.
- Impact: Democratized access to funding for creators.
Frequently Asked Questions (FAQs)
Do backers receive equity?
No, Kickstarter is reward-based only.
What happens if the funding goal is not met?
The project receives no funds, and backers are not charged.
Is Kickstarter available worldwide?
Yes, though creator eligibility varies by country.
