Success Crafted

Kickstarter: Unlocking Creativity and Revolutionizing Funded Projects

Anto Kickstarter: Revolutionizing Crowdfunding

Crowdfunding, a collective effort to raise funds to finance a project or venture, has become a popular alternative to traditional financing methods. One of the most significant players in this field is Kickstarter, a crowdfunding platform that has democratized creativity throughout the world.

In this article, we will explore the history of Kickstarter, its successes, and its impact on the creative industry. We aim to give our readers a comprehensive understanding of how Kickstarter operates and its significance in today’s society.

Overview of Kickstarter

Kickstarter was founded in 2009 by Perry Chen, Yancey Strickler, and Charles Adler. The platform’s primary goal was to provide an alternative way for creative projects to be funded.

Projects ranging from films, games, and music to books, graphic novels, and DIY products have found a home on Kickstarter. The platform’s popularity has been attributed to its successful democratization of creativity.

Kickstarter enables anyone with an idea to make it a reality without having to worry about bureaucratic processes, profit margins, and other obstacles that come with traditional funding.

Success and Impact

Kickstarter has played a significant role in leveling the playing field in creative fields. By providing a platform that allows creators to present their ideas and attract backers from all over the world, Kickstarter has revolutionized the way projects are funded.

It has even helped to launch the careers of many notable individuals in the creative industry. The numbers speak for themselves.

Since its launch in 2009, Kickstarter has raised over $5.6 billion for over 192,000 projects. These projects have received pledges from over 19 million backers from across the globe.

Kickstarter’s impact is evident in the numerous awards and accolades it has received over the years.

History of Kickstarter

Founding and Early Success

Kickstarter’s early success can be attributed to its founders’ ability to tap into the growing interest in crowdfunding. The founders’ initial goal was to provide a platform specifically for creative projects, and the beta version of Kickstarter was launched in April 2009.

Within months, Kickstarter had attracted thousands of members who launched successful projects. The company officially launched its full-version in April 2010.

Its ease of use and success in funding creative projects made it one of the most popular crowdfunding platforms worldwide.

Major Milestones and Contributions

Kickstarter’s impact on the creative industry is enormous. It has helped fund video games, music, films, art, and many other creative endeavors.

One of the most notable contributors to the platform’s success was the Pebble Smartwatch, which raised over $10 million on Kickstarter in 2012. Kickstarter also launched several categories, including “Design and Technology” in 2015, which has helped fund thousands of innovative technologies that would have struggled without crowdfunding.

Kickstarter has also been instrumental in funding social and political causes such as the American Civil Liberties Union (ACLU).

Conclusion

Kickstarter has played a crucial role in democratizing creativity and revolutionizing the way projects are funded. Its impact is evident in the numerous projects that have been successful and the number of careers it has launched.

The platform has enabled non-celebrity creators to find an audience and bring their projects to life, making it an essential part of the creative industry. In conclusion, Kickstarter is a platform that has helped to unlock creative potential globally, and its importance cannot be overstated.

Its success has been instrumental in removing the constraints that creatives have faced with traditional funding and has helped make the impossible a reality for many.

Ownership and Mission of Kickstarter

Ownership

Kickstarter is a Public Benefit Corporation (PBC), which means that it is a for-profit corporation that seeks to benefit the public by pursuing a specific public benefit mission. Kickstarter PBC was founded in 2015 when the company’s founders decided to make the switch from a traditional for-profit corporation to a PBC.

The move allowed the company to prioritize its mission and make decisions based on factors beyond financial gain. One of the notable implications of the switch was that shareholders would have no control over Kickstarter’s mission.

This move allowed Kickstarter to pursue its goals without the influence of traditional stakeholders, such as investors interested in maximizing profits.

Mission Statement

Kickstarter has a clear mission statement, “to bring creative projects to life.” This mission statement has been the company’s driving force since its founding, and everything it does is geared towards making it a reality. Kickstarter’s mission statement is not just symbolic; it is also enforced by Kickstarter PBC’s legal structure.

The specific public benefits that Kickstarter seeks to promote can be summarized as the promotion of creativity, inclusivity, transparency, and sustainability. The company seeks to create a positive impact on society by providing support to creators who might not have access to traditional funding, thus democratizing the creative process.

How Kickstarter Works

Project Creation and Funding Process

Kickstarter’s business model is simple yet effective. A creator creates a detailed campaign that outlines the project’s details, the estimated cost of bringing it to life, and the funding goal.

Kickstarter has a broad spectrum of categories that a campaign can fit under, such as art, comics, design, games, music, photography, publishing, technology, and theater. The project creator sets a funding goal that represents the minimum amount needed to complete the project.

Then, backers pledge their support by making a financial commitment to the project. Pledges can range from a few dollars to thousands of dollars based on the project’s funding goal.

In return for their support, backers receive rewards based on their pledge amount. Rewards can range from a simple “thank you” to more concrete rewards like a copy of the project when it is completed, exclusive merchandise, or a personal thank you from the creator.

Rewards are meant to motivate backers to pledge their support and create a sense of community around the project. If the funding goal is met or exceeded within the campaign’s timeline, funds are released to the creator, and the project enters the realization stage.

In case the funding goal is not met, backers’ pledges are not charged, and the project is not funded.

Revenue Model

Kickstarter is not a charity; it derives revenue from the fees associated with funding campaigns. Kickstarter charges two fees: a 5% funding fee and payment processing fees, which are 3%-5% based on the payment method used to make a pledge.

These fees are charged to the creator, who accounts for them in the project’s budget. Additionally, creators may opt-in to Kickstarter’s advertising programs as another way to drive traffic to their campaigns.

If they do so, Kickstarter earns a percentage of the funds raised as an advertising fee.

Conclusion

Kickstarter’s mission to bring creative projects to life has been its guiding principle since its founding. The company’s unique status as a Public Benefit Corporation reflects its commitment to its mission.

Its simple yet effective business model that includes setting realistic funding goals, offering rewards, and charging reasonable fees has made it an innovative solution to traditional financing for creative projects. Kickstarter has forever changed the way creative projects are funded and enabled many ideas to come to life that otherwise may have been shelved due to a lack of traditional funding options.

Customer Segments and

Value Propositions

Customer Segments

Kickstarter’s customer segments can be broadly categorized into five groups: project creators, backers, investors, journalists, and industry professionals. Project creators are the backbone of Kickstarter.

They are the ones who bring ideas to the platform, set funding goals, and rally backers support to bring their projects to life. Backers are the individuals who support the project creator’s vision by pledging their financial support.

Investors are the individuals who provide capital to a business in exchange for a share of its profits. Kickstarter is not a marketplace for investments, and Kickstarter users do not invest in projects with the expectation of profiting from them.

Journalists and industry professionals also comprise customer segments for Kickstarter. Journalists often cover Kickstarter campaigns to keep their audiences informed about new products and innovations.

Industry professionals with specialized knowledge and expertise may engage with Kickstarter campaigns, providing mentorship and valuable insights to project creators.

Value Propositions

Kickstarter’s value propositions cater to both project creators and backers. Project creators benefit from access to financial and social capital they may not have had access to through traditional funding models.

Backers, on the other hand, benefit from contributing to projects they care about and getting rewards in return. Kickstarter’s value propositions can be summarized as access, exposure, no upfront costs, creative control, feedback, and community engagement.

Access: Kickstarter opens up avenues for funding that may have once been closed to project creators. Kickstarter’s easy-to-use platform democratizes the funding process and makes it accessible to all.

Exposure: Kickstarter’s platform offers project creators unparalleled exposure to a global audience. By hosting campaigns on Kickstarter, creators can showcase their work to millions of potential backers worldwide.

No Upfront Costs: One of the most significant value propositions of Kickstarter is the lack of upfront costs for project creators. Unlike traditional funding models, Kickstarter does not require project creators to pay any fees upfront to launch their campaigns.

Creative Control: Kickstarter’s platform gives project creators complete freedom in creating their campaigns. Creators can decide on the creative direction, funding goals, and reward structure of their projects.

Feedback: Kickstarter’s platform offers real-time feedback from a large community of creative professionals and enthusiasts. This feedback can help project creators make significant improvements to their projects in real-time and increase their likelihood of success.

Community Engagement: Finally, Kickstarter creates a sense of community around projects. Backers feel that they are not just investing in a product but contributing to a larger cause, and project creators can interact and engage with their backers throughout the creative process.

Channels,

Customer Relationships, and

Revenue Streams

Channels

Kickstarter has multiple channels for communication with its audience. The primary channel is its website, where project creators can launch their campaigns and backers can pledge their support.

However, Kickstarter also offers support through social media, live chat, mobile apps, and email.

Customer Relationships

Kickstarter values customer relationships and has implemented systems to maintain communication with its users. Social media is a powerful tool for Kickstarter to promote campaigns and update their audience on new developments.

Email is another critical tool used by the company to inform project creators of campaign milestones, including pledge confirmations and backer updates. Kickstarter also has a customer support center designed to help users with their campaigns.

The company also offers backer updates that help backers stay informed about the project’s development.

Revenue Streams

Kickstarter earns revenue through multiple revenue streams. Its primary revenue stream is through funding fees charged to project creators, which are paid once the funding goal is met.

These fees are 5% of funds collected. Additionally, Kickstarter earns revenue through payment processing fees which range from 3%-5% based on the payment method used.

Kickstarter also offers advertising services to project creators through its “Promoted Projects” program, which allows project creators to reach more potential backers.

Conclusion

In conclusion, Kickstarter’s value propositions and customer segments have been instrumental in helping to create a platform that empowers creative individuals worldwide. The company’s focus on access, exposure, no upfront costs, creative control, feedback, and community engagement has been a driving force for the platform’s success.

Kickstarter’s wide range of channels for communication, and its commitment to customer relationships has made it one of the most popular crowdfunding platforms online. The company’s main revenue streams include funding fees, payment processing fees, and advertising which have enabled it to continue operating and supporting creative projects worldwide.

Key Resources, Activities, Partners, and

Cost Structure

Key Resources

Kickstarter’s key resources are the foundational elements that enable it to operate successfully. These resources include its technological infrastructure, user data, partnerships, community, brand reputation, and staff.

Technological infrastructure is essential for Kickstarter’s platform to function smoothly. The platform needs to handle a large volume of campaigns, pledges, and interactions between project creators and backers.

Investing in robust servers, security measures, and user-friendly interfaces ensures that Kickstarter remains a reliable and user-friendly platform. User data is another crucial resource for Kickstarter.

By collecting data on user preferences, campaign success rates, and other metrics, Kickstarter can better curate and recommend projects to its users. This data also helps the company analyze trends and make informed decisions about platform improvements.

Partnerships are vital for Kickstarter’s success. Project creators, organizations, media outlets, payment processors, creative communities, and software providers are all key partners that contribute to the platform’s ecosystem.

Collaborating with these partners helps expand the reach of Kickstarter, attract new creators and backers, and provide additional services and support. The Kickstarter community itself is a significant resource.

It consists of project creators, backers, and enthusiasts who engage with the platform regularly. The community’s excitement, feedback, and shared enthusiasm have a positive impact on project success rates and contribute to the overall vibrancy of Kickstarter.

Kickstarter’s brand reputation is an invaluable resource. Over the years, the platform has built a reputation for enabling innovative projects and fostering creativity.

This reputation establishes credibility and attracts both project creators and backers looking for trustworthy platforms. Lastly, Kickstarter’s staff is a critical resource.

The team ensures that the platform operates smoothly, provides customer support, curates campaigns, and drives innovation within the company.

Key Activities

Kickstarter’s key activities involve various aspects of platform management, customer support, and ecosystem building. Marketing is a crucial activity for Kickstarter.

The company actively promotes campaigns through its website, social media channels, and partnerships with media outlets. By showcasing successful projects and sharing inspiring stories, Kickstarter attracts new project creators and backers.

Customer support is another significant activity for Kickstarter. The platform provides user support through channels like email and customer support centers.

Responding to inquiries, resolving issues, and guiding project creators and backers contribute to a positive user experience. Platform maintenance is an essential ongoing activity.

Kickstarter must ensure that its technological infrastructure remains up-to-date, secure, and scalable. This involves regular updates, bug fixes, and system monitoring to provide a smooth and reliable user experience.

Curation is a critical activity for Kickstarter. With thousands of campaigns launched every day, Kickstarter curates and presents projects that align with its guidelines and resonate with its community.

This curatorial role helps ensure a high-quality and diverse range of projects on the platform. Payment facilitation is an essential activity for Kickstarter.

The platform handles the collection and distribution of funds between project creators and backers. This involves partnering with payment processors to facilitate secure and efficient transactions.

Data analysis is a vital activity for Kickstarter’s continuous improvement. Analyzing user data and campaign performance helps Kickstarter make informed decisions about platform enhancements, identify emerging trends, and improve recommendation algorithms.

Key Partners

Kickstarter has key partnerships with various entities that contribute to its success. Project creators are key partners as they bring innovative ideas and campaigns to the platform.

Organizations and media outlets partner with Kickstarter to promote campaigns and provide additional exposure to creators. Payment processors play a vital role by partnering with Kickstarter to handle the financial transactions between backers and project creators securely.

Creative communities and software providers collaborate with Kickstarter to ensure complementary services and technical integrations. Backers themselves are essential partners for Kickstarter.

Their support and engagement are crucial to the success of projects on the platform.

Cost Structure

Kickstarter’s cost structure consists of various components necessary for its operations. These costs include administrative expenses, legal compliance, marketing, personnel, technology, and payment processing fees.

Administrative expenses cover the general overhead costs associated with running Kickstarter’s operations, such as office space, utilities, and general administrative staff. Legal compliance costs are incurred to ensure that Kickstarter operates within the legal frameworks of the countries it operates in.

Compliance with regulations related to crowdfunding, financial transactions, and user data protection are essential aspects of Kickstarter’s operations. Marketing costs are incurred to promote Kickstarter and its campaigns.

These costs cover advertising, partnerships with media outlets, and social media campaigns to attract new creators and backers to the platform. Personnel costs include salaries, benefits, and training for Kickstarter’s staff.

The company invests in a talented team to manage various activities, including customer support, platform maintenance, curation, and data analysis. Technology costs cover the development and maintenance of Kickstarter’s technological infrastructure.

This includes servers, security measures, software development, and platform updates. Finally, payment processing fees are a significant cost for Kickstarter as they cover the costs associated with facilitating financial transactions between backers and project creators.

Competitors,

Opportunities, and

Threats

Competitors

Kickstarter operates in a competitive landscape with several crowdfunding platforms. Its main competitors include Indiegogo, Patreon, GoFundMe, Crowd Supply, and Seedrs.

These platforms offer similar crowdfunding services to both project creators and backers, attracting competition for funding campaigns.

Opportunities

There are several opportunities for Kickstarter to capitalize on. Expanding into new product categories enables Kickstarter to attract a wider range of project creators and backers.

Additionally, integrating blockchain technology into its platform could provide increased transparency and security for transactions. Kickstarter also has the opportunity to provide additional support and services to project creators.

This could include offering mentorship programs, educational resources, and specialized tools to help creators bring their projects to life. Finally, expanding into new markets presents opportunities for Kickstarter to reach a broader international audience.

By localizing the platform and establishing partnerships with local organizations, Kickstarter can cater to creators and backers worldwide.

Threats

One of the main threats that Kickstarter faces is the risk of project failure. Not all projects meet their funding goals or successfully deliver on their promises.

Project failure can impact the confidence of backers and the reputation of Kickstarter as a reliable platform. Competition is also a threat.

With the proliferation of crowdfunding platforms, Kickstarter faces competition for project creators and backers. Other platforms may offer unique features or cater to specific niches, presenting challenges for Kickstarter in attracting and retaining users.

Legal and regulatory issues pose a potential threat. Compliance with evolving regulations requires continuous attention, as non-compliance can result in reputational damage and legal consequences.

Lastly, reputation damage is a significant threat. Negative experiences from project creators or backers, instances of fraud, or controversies related to specific projects can tarnish Kickstarter’s brand reputation and undermine trust in the platform.

In summary, Kickstarter’s key resources, activities, partners, and cost structure contribute to its successful operation. By understanding its customer segments and value propositions, Kickstarter has been able to create a vibrant and engaged community.

Continuously evaluating opportunities and addressing threats ensures Kickstarter’s continued growth and impact in the crowdfunding industry. In conclusion, Kickstarter has revolutionized the crowdfunding landscape and democratized creativity by providing an accessible platform for project creators to bring their ideas to life.

Through its mission to support creative projects and its value propositions of access, exposure, no upfront costs, creative control, feedback, and community engagement, Kickstarter has become a vital resource for creators and backers alike. With key resources, activities, partnerships, and a cost structure that support its operations, Kickstarter has solidified its position as a leader in the crowdfunding industry.

While competition, threats, and challenges exist, Kickstarter stands as a testament to the power of collaboration and the limitless potential of human creativity.

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