Kickstarter

Definition

Kickstarter is a popular crowdfunding platform that allows individuals and organizations to present their creative projects to the public and seek financial backing from a community of supporters. This platform operates on an all-or-nothing funding model, meaning projects only receive funds if they meet their funding goal within a specified time frame, which fosters urgency and community investment in the success of the project.

5 Must Know Facts For Your Next Test

1. Kickstarter was launched in 2009 and has since helped fund thousands of creative projects across various categories like art, technology, and design.
2. The platform allows creators to showcase their ideas through engaging videos and detailed descriptions to attract backers.
3. Rewards offered to backers can range from small tokens of appreciation to exclusive products or experiences related to the project.
4. Kickstarter's all-or-nothing funding model encourages creators to set realistic funding goals and promotes accountability since backers are only charged if the goal is met.
5. The success of a Kickstarter campaign can significantly impact the future viability of a project, as it often serves as proof of market demand to potential investors and retailers.

Review Questions

• How does Kickstarter's all-or-nothing funding model influence the strategies of project creators when planning their campaigns?
  • Kickstarter's all-or-nothing funding model compels project creators to carefully plan their campaigns by setting realistic funding goals and creating compelling presentations. This urgency encourages them to actively promote their projects and engage potential backers to ensure they reach their target. By doing so, creators not only secure necessary funds but also build a community around their project that can provide ongoing support.
• Discuss the role of backers in the success of a Kickstarter campaign and how their contributions can affect the overall creative process.
  • Backers play a crucial role in Kickstarter campaigns by providing the necessary funds that allow creative projects to come to life. Their contributions help validate the project's viability and serve as a form of market research, informing creators about public interest and potential demand. Furthermore, feedback from backers can guide creators throughout the process, ensuring that the final product aligns with what supporters want, ultimately fostering stronger connections between creators and their audience.
• Evaluate the impact of Kickstarter on traditional funding avenues for creative projects and how it has transformed the entrepreneurial landscape.
  • Kickstarter has significantly altered traditional funding avenues by democratizing access to capital for creative projects, allowing individuals without extensive networks or financial backing to raise funds directly from the public. This shift has empowered entrepreneurs to pursue innovative ideas that may have otherwise struggled for support through conventional methods like banks or venture capitalists. By providing a platform for creators to engage with audiences directly, Kickstarter has fostered a culture of grassroots entrepreneurship, encouraging more diverse ideas and broadening opportunities for creative expression.

Related terms

Crowdfunding: The practice of raising funds for a project or venture by soliciting contributions from a large number of people, typically via the internet.

Backer: An individual who contributes money to a Kickstarter campaign, often in exchange for rewards or early access to products.

Funding Goal:

The minimum amount of money a project must raise during its campaign on Kickstarter to receive any of the pledged funds.