Kickstarter

Definition

Kickstarter is a crowdfunding platform that allows individuals and organizations to raise funds for creative projects by collecting small contributions from a large number of people. It connects creators with backers who are interested in supporting innovative ideas, products, or artistic endeavors, fostering a sense of community and collaboration around user-generated content.

5 Must Know Facts For Your Next Test

1. Kickstarter was launched in 2009 and has helped fund thousands of projects across various creative industries, including film, music, art, technology, and design.
2. Projects on Kickstarter must meet a funding goal within a set timeframe; if they do not reach this goal, no funds are collected from backers.
3. Creators can offer different tiers of rewards to backers based on their contribution levels, encouraging higher pledges by providing exclusive or limited items.
4. The platform emphasizes the importance of community engagement and transparency, requiring creators to provide regular updates to backers during the project lifecycle.
5. Kickstarter has a unique all-or-nothing funding model, which helps to mitigate risk for both creators and backers, as it ensures that funds are only collected if the project is fully funded.

Review Questions

• How does Kickstarter facilitate the connection between creators and potential backers?
  • Kickstarter connects creators with potential backers by providing an online platform where individuals can showcase their projects and explain their goals. This enables creators to reach a broader audience interested in supporting innovative ideas. The platform also allows backers to explore various projects, interact with creators through comments and updates, and choose which projects they want to support based on personal interest.
• Discuss the advantages and disadvantages of using Kickstarter as a funding source for creative projects.
  • Using Kickstarter offers several advantages, such as access to a large audience of potential backers, validation of the project idea through public interest, and the ability to retain full ownership without giving away equity. However, there are also disadvantages, including the pressure to meet funding goals within a limited time frame and the possibility of failure if the project does not resonate with backers. Additionally, managing a campaign requires significant time and effort in marketing and communication.
• Evaluate the impact of Kickstarter on the landscape of user-generated content and creative entrepreneurship.
  • Kickstarter has significantly transformed the landscape of user-generated content and creative entrepreneurship by democratizing access to funding for diverse projects. It empowers individuals to pursue their creative ideas without relying solely on traditional investors or financial institutions. This shift has led to an explosion of innovative products and artistic works that might not have been realized otherwise. As a result, Kickstarter fosters a more vibrant creative ecosystem where community support plays a crucial role in bringing ideas to life.

Related terms

Crowdfunding: A method of raising money for a project or venture by gathering contributions from a large number of people, often via the internet.

Backer: An individual who supports a project on Kickstarter by pledging money in exchange for rewards or early access to the finished product.

Rewards-based funding: A crowdfunding model where backers receive non-financial rewards, such as products or experiences, in return for their contributions.