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KristineS
09-22-2011, 12:58 PM
I first came across Kickstarter (http://www.kickstarter.com/) on another forum to which I post. Apparently it's a fundraising site for creative efforts and businesses. I'm of two minds about this. On one hand, I know how hard it can be to raise money to start a small business. On the other hand, something about this just seems off to me, and I'm not sure if I feel that way because sites like this aren't typically how one raises money for a business, or if it just strikes me as begging a bit.

What do the rest of you think? Would you donate to support a project on this site?

vangogh
09-22-2011, 07:22 PM
I've known about it for awhile. It gets talked about quite often in design circles. One of the magazines I regularly read had an article about it a few months back. I can't remember which magazine it was though.

It's an interesting concept. My initial thought was to think there's something off with the idea, but having seen more of the projects and heard more about I think it's a pretty good thing. Early on Kickstarter was very picky about who could post a project. To grow they have to relax it some, but I don't think anyone can just post. I think there's still an approval process of sorts to get in.

I can understand the feeling that it's begging, but so is all fundraising when you think about it. With Kickstarter projects you're more selling your product in advance and using the revenue from those advanced sales to fund the project. I forget exactly how it works, but I think there are times when the people donating can get their money back. It might only be if the project doesn't reach it's fundraising goal.

From having followed some projects over the months I've seen progress updates and the like. I'm sure there will be some projects that never go anywhere, but overall it seems like a good idea to me.

Dee2x
09-24-2011, 05:28 PM
The website “Kickstarter” would be classified as a “Crowdfunding” site. There are a number of crowdfunding sites around to help entrepreneurs and small businesses find needed funds for their companies. With banks becoming more stringent and traditional loans more difficult to acquire, crowdfunding can potentially serve as an alternative to bank loans. Here’s a link that list other crowdfunding sites (http://www.practicalecommerce.com/articles/2853-13-Crowdfunding-Websites-to-Fund-Your-Business).

Ammy John
09-26-2011, 01:29 AM
First time i am hearing about it here that you need suport on it but i think a person who will support you on this project will definitely like to have also some share in this business. Otherwise nobody is gonna participate.

KristineS
09-26-2011, 11:39 AM
Vangogh, I believe those who donate do get their money back if the product isn't fully funded. I also suppose this isn't much different than trying to get a grant or something. You still have to present your idea and convince people it's worth funding. No one is coerced into giving your money. Still feels weird to me though, and I'm not sure why.

vangogh
09-26-2011, 03:52 PM
The website “Kickstarter” would be classified as a “Crowdfunding” site.

Good way to classify it.


Otherwise nobody is gonna participate.

Kickstarter works by people contributing money toward what will actually sold. For example you could start a project seeking funding to write a book. Anyone who contributes say $10 would get a copy of it once written. It's not about investing in the business to gain a share of the business, but rather to contribute because you believe in what the person is trying to do and their ability to do it.


Still feels weird to me though, and I'm not sure why.

It seemed weird to me too at first. The more I've read about it and followed a few projects though the less weird it seems.

KristineS
09-28-2011, 12:35 PM
I spent some more time looking at this too, and I'm starting to think it's all in how you approach it. The first mention I saw of this was on another site on which I post, which is mostly devoted to garment decoration, and the post was from someone starting a clothing line. The way it was presented by that person was very hard sell, and I wasn't comfortable with the idea. Since I've gone through and looked at some of the other products on the site, particularly the publishing products, I've seen that this could be a very cool thing. Really this is pretty much how the arts have always been supported. In the old days, an artist would find a patron who would house and feed and clothe them and then have some claim to the artist's work. In this case, people are just using the Internet to find their patronage. Kind of cool when you think about it.

vangogh
09-28-2011, 01:11 PM
The site originally started mainly as a way to help fund projects for creative types. I read an article a few months back where I think they mentioned possibly expanding the types of projects though. It's really just a way to crowdsource financing for some projects. I agree the approach makes a difference in what we'll inevitably think about any of the projects. There's certainly room for spam and abuse, though the site owners seem committed to doing what they can to curtail that.

I found the article. It's from Wired Magazine and is titled How Kickstarter Became a Lab for Daring Prototypes and Ingenious Products (http://www.wired.com/magazine/2011/03/ff_kickstarter/all/1)

One of the projects that keeps getting mentioned in my feeds is this documentary about the Linotype (http://www.kickstarter.com/projects/206589381/linotype-the-film?ref=live). It's hardly something I'd expect most people to be interested in and could see where funding could be hard to come by, but people like myself interested in design and particularly typography will likely be interested. I know I'm interested.

If you watch the video on their Kickstarted page (about 2 1/2 minutes) you can see they are putting the money to good use and shooting a professional film. You may not have any desire to see the finished project, but I think you'd agree they're putting the money to good use.

KristineS
09-29-2011, 11:42 AM
O.k., that Linotype film looks seriously cool. I'd watch it.

Also, that does speak well of projects that are using Kickstarter for fundraising. That's a professional quality effort.

vangogh
09-29-2011, 12:15 PM
Yep. It's not the only project I've followed, but it's one that I've come across on several occasions and been able to see some progress. When I see that progress it makes me think Kickstarter is a pretty good idea. I'm sure there will be some projects that never get completed even after reaching their fundraising goals, but that's not that different from someone investing in a company that never amounts to anything.

Look through Kickstarter the projects do seem legit and it's not hard to see that many would have a hard time getting funding in another way. Read the Wired article. It had some good information about the people who started the site and why they started it.

KristineS
09-29-2011, 12:27 PM
I just read the article. I like the idea behind why they started the site, and how they did it. I also think the article is right, they could face some issues if they go more corporate, and transparency will always be key. Have to admit I didn't really think about it from the developing contacts and testing new ideas standpoint, but it would be a great venue for that.

vangogh
09-29-2011, 04:43 PM
It was a good article, wasn't it?

Hopefully they won't expand to the point where they can't moderate the projects to some degree. I think Kickstarter is a pretty cool idea, though I'll admit to being suspicious the first time I came across the site. The more I've learned about it, the more I'm behind what they're doing.

SnellExperts
11-02-2011, 06:23 PM
I have been hearing quite a bit about kick starter here recently. My son is actually thinking about using it to fund his album for the band that he is in. I know he has spoken with a few different people that have all experienced success with it (10,000 ish was what they were raising). I'm going to direct him to the crowd funding site that was listed on the first page of this forum to see if it can help him out anymore.

vangogh
11-02-2011, 08:56 PM
Musicians would seem to fit well with who Kickstarter wants to attract and who the community supports. It's probably a good idea for your son to give it a try. I think the worst case is his band doesn't meet their goal and gets no money, but that's pretty much where they are now before trying.

KristineS
11-03-2011, 12:31 PM
From what I've seen, it looks like the key to getting funding is to have a well thought out proposal and to present it well. You can't just go and say I want to write a book or I want to make a record. You have to show people that you have a plan for what you want to do.

I'd be interested in hearing if your son tries Kickstarter and what his experience is.

vangogh
11-03-2011, 01:36 PM
Very true. It's not a simple matter of ask and they will give. It also helps if people know who you are in advance and trust that you'll be able to complete your project and that it will turn out well.

Your son should probably look through some of the current projects and see how they present things. There are some good videos up and it would make sense for him to share a song or even a rough demo so people can listen to what they'll be supporting.

SnellExperts
11-05-2011, 03:02 PM
They are working with a guy right now to get a professional video. I know it seems like they are putting a lot of thought into this, so hopefully they will succeed with their plan. I will definitely keep you guys posted on how his experience goes.
-vangogh- yeah, they really don't have a lot to lose except for the time they put into the video. It's nice because it doesn't cost them any money to do it, so it really is worth a shot since it really doesn't have any risk.

vangogh
11-07-2011, 01:27 AM
And since they're musicians learning something about how to make a good video is only going to be a nice skill to have. Keep us updated. I'll be looking forward to seeing their video. Hopefully Kickstarter works for them.

KristineS
11-07-2011, 12:10 PM
Wow, that's exciting that they're going to give this a try. I'll keep my fingers crossed for them.

SnellExperts
11-08-2011, 02:09 AM
Thank you very much. I will keep you guys posted as things update with it. I will get the link from him whenever they get it live.

princesultan
06-13-2012, 12:22 PM
i'm looking to start up a particular music school. how original does the idea need to be in order to get funding? or is funding possible simply with a solid idea + well thought out proposal?

Harold Mansfield
06-13-2012, 01:18 PM
Yes, I know of Kickstarter. One of my favorite start ups is there:
Chameleon | Your new Android Home Screen. Always Relevant. Immediately Valuable. - Teknision Inc. (http://chameleon.teknision.com/)

Usually well thought out proposals with prototypes do better than just ideas. People like investing in things that they can see and knowing that the people involved have and are using their own resources and money too and not just looking to risk the money of others.

But, there are all kinds of projects there. Not just tech related.
I'd say get your presentation and marketing materials and images together. Imagery is really important on that site.

princesultan
06-13-2012, 04:08 PM
ok cool, thanks!

Harold Mansfield
09-11-2012, 08:56 AM
What they do is take pledges and set a time line. If the total of the pledges equals the funding amount by the date, then they collect on the pledge. If not, they don't take it ahead of time.

The cool thing about it, as in the case of Chameleon, is that I have the beta tester of the app now before it's on the market and get to help shape it with feedback and such before it goes for sale. Once it goes for sale, I'll already have it. My pledge counts as a purchase.

A lot of stat ups also give pledges schwag based on amount, like merchandise, list them in the credits of the product or app and other goodies.
I can think of worse ways to waste 5 or 10 bucks.

vangogh
09-12-2012, 01:54 AM
There are some really nice projects on Kickstarter. Chris Coyier of CSS-Tricks recently posted a project to help him build a membership side to his site. He didn't ask for a lot of money. The lowest pledge was $25, which I gave him as much because his blog has helped me so much over the years that I simply wanted to give back. In exchange for my pledge I received limited access to the membership side of the site for about 6 months. He redesigned his site and made screencasts of the whole thing. I think the plan is to post about 150 screencasts.

For me it was worth it, since I was happy to contribute to someone who's already given me more than my pledge in value and I get the access to the screencasts which I was interested in seeing. From Chris's side he generates an audience for this new aspect of his business. I imagine many of the people who pledged will end up staying on beyond the time frame their pledge granted and many will also spread the word. It's a win-win.

Some of the project I've seen didn't interest me all that much, but many of them seem like they could be great products assuming the financing raised brings them to market. Not every project would work on Kickstarter, but there are some really good ideas there. I was skeptical when I first heard about the site, but the more I've seen, the more I like it.

AccountantSalary
10-05-2012, 09:08 PM
I've known friends who have financed their plays through it, and a few who didn't get enough contributions. I've also contributed to a couple of projects, and they did come through with their promised rewards.

Bottom line: it's legitimate and seems to work for its purpose.

vangogh
10-11-2012, 02:26 AM
It's definitely legitimate. Nice to hear a story of it working for someone you know too. Some of the projects I've seen have been really interesting. There's only been one that struck me as iffy when I saw their pitch, but even that wasn't too bad. The first time I heard about it I was skeptical, but I've grown to like Kickstarter a lot more since then.

KristineS
10-11-2012, 11:23 AM
I haven't spent a lot of time on the Kickstarter site, but I have seen stories on Twitter or Facebook or just in the news of people who used the site and successfully financed their projects. In a way it's kind of like the historical patronage system where an artist was subsidized by a rich person who supported them while they created. The difference now is that there are a lot of patrons instead of just one.

vangogh
10-12-2012, 03:43 AM
Yeah, a lot of the projects I've seen have fallen into two categories. One where the product itself is really interesting. I think in those cases they get a lot of support because people do want to see the product get developed so they can own one. They'll also get support from people who simply want to support young companies.

Another category is people who have already contributed a lot in some way or another to an audience. Their audience will then support their project in part for whatever goodies are being offered, but more for what the person has already given them. That's why I supported Chris Coyier's project. I've been reading his blog and learning from him for years. He long ago gave me $25 in value so it was my chance to return the favor and give him something back. I've seen people get funding to write books or make movies, usually from people who already knew them.

fayt
10-13-2012, 04:56 PM
I tried it and was denied about 4 times. They are extremely picky over everything. If you leave one tiny detail out, aren't clear about anything, don't have a video, you are denied.

vangogh
10-17-2012, 12:23 AM
Sorry you were denied, but that does speak for how serious KickStarter is about maintaining quality. That's not to suggest what you submitted wasn't quality, but rather they have tough standards to meet. I can understand why they ask for videos. Those are really helpful in understanding the project and even more getting to know the people you might invest in.

Are you planning on submitting again?

fayt
10-17-2012, 07:43 AM
I gave up, because they don't even have a way of contacting a real person. It's auto generated denies. The 3rd time I made sure everything was 100% covered, I carefully combed every detail and fixed the problems they requested. Still was denied, when there was people on there having almost the same type of thing as me.

vangogh
10-17-2012, 10:35 AM
Weird. I wonder why. I do know the feeling though. I've applied to other things and was denied by what looked like an automated response. The response would list all the criteria and suggest I should reapply when I met them all. Except I had met everything listed so there was nothing to change to resubmit.

fayt
10-17-2012, 12:12 PM
Yeah and I searched and searched for a way to contact someone, but came up with nothing.

vangogh
10-18-2012, 01:14 AM
I do see a link to a contact form at the bottom of the site, but I'm not sure if that will lead to who you'd want to talk to. I also found some guidelines (http://www.kickstarter.com/help/guidelines).

fayt
10-18-2012, 07:49 AM
Tried it once, never received a reply, not even to the spam folder. Perhaps they are picky about what they want on their website.

AlexB1
12-18-2012, 10:32 AM
These days Kickstarter has moved beyond just creative projects and more into "pre-sales" where you can design a product and then pay for the actual creation with pre-sales (the most famous being the Pebble watch, which raised ~$11mm). Technically this is all just a donation with a "perk" for various donation levels. It is totally "legitimate" in that they are trying to help artists and product developers get in front of a market, but there is also no guaranty that you will ever get the "perk" (ie. Pebble watch) that you funded. One interesting point is they will not help you fund companies, just artistic projects and products.

I've heard the same complaint about others regarding Kickstarter being extremely hard to get a hold of as someone looking to post a project (and being very picky about the projects they accept, since they want to have a very high "success" rate). That said, they are *extremely* easy to get a hold of if you are reaching out regarding *backing* a project. You may be able to find a way to get your questions answered in that roundabout way.

vangogh
12-18-2012, 11:58 PM
Good idea to reach out with the idea of backing a product to get some information about posting one. I have a hunch they won't answer if they don't want to, but it's worth a try.

I think most people who back projects understand there are no guarantees. I think many just want to help support interesting ideas. In my case I was very sure what I was backing was going to get done, but even if it wasn't I would have still contributed. I was backing the project more for what the person has given me for free through his blog for years. It was a way I could pay him back for all he'd given to me already.

I also it helps that it's hard to get a project in. It gives backers some confidence that while there aren't any guarantees, it's unlikely they're being scammed.

bradjones
12-21-2012, 12:04 PM
KristineS, i get kind of the same feeling after looking at the site... It does seem like an odd way to raise money for a business. On the other hand I have looked through some of their projects and they seem to be real, and effective. Whether you use it or no is up to you but in my opinion it seems all right.

Cheers,

vangogh
12-22-2012, 12:33 AM
They're definitely legit projects. They have some really nice projects there too. I see quite a few that I hope they manage to develop into products for sale.

KristineS
12-27-2012, 01:11 PM
I think more and more start up businesses are turning to crowdsourcing now that it has been proven as a viable source of funding. Especially since sites like Kickstarter have made it relatively easy to place yourself in front of people who might be willing to help fund your project or business start-up. It also stands to reason that it's easier to find several people who will donate a small amount than to find one person who will give you a lot of money. In a way, using Kickstarter to help fund a small business makes a lot of sense, even if that wasn't the original intent of the site.

vangogh
12-27-2012, 03:46 PM
It's also a good way to test the feasibility of your idea. If you can't reach your Kickstarter goal it could be a good indication that there's not enough interest in the idea to sustain it as a business. I've seen a few Kickstarter projects that seemed less about a need to raise money and more about generating some buzz for a product that's being launched.

KristineS
12-28-2012, 12:58 PM
It's also a good way to test the feasibility of your idea. If you can't reach your Kickstarter goal it could be a good indication that there's not enough interest in the idea to sustain it as a business. I've seen a few Kickstarter projects that seemed less about a need to raise money and more about generating some buzz for a product that's being launched.

That's a good point. It is market research in a way. If you find people who are interested enough to help fund your project, then it probably has some potential. If you can't even generate interest enough to get people to contribute, it may be time to move on to something else.

vangogh
12-28-2012, 03:55 PM
Exactly. I've definitely seen quite a few projects that struck me more as looking for the market research. I've seen people ask for money to write a book or set up some service, where they clearly didn't need the money. It's a good gauge of interest though. Why not see who's interested enough in a book you're thinking of writing and willing to pay for it before you start.

machine
01-04-2013, 06:20 PM
Some recent changes in laws will make crowdfunding a brand new deal, this will become serious business I think, not some obscure thing most have never heard of.

I have an idea that I am kicking around, may try it myself in a few months.

vangogh
01-08-2013, 11:55 AM
What are the changes?

machine
01-08-2013, 01:04 PM
What are the changes?

Apparently some things are temporarily held up but it appears they will move forward.
Crowd-Funding Is Stuck In Regulatory Hell - Business Insider (http://www.businessinsider.com/crowd-funding-is-stuck-in-regulatory-hell-2012-12)

I am no expert on this, just kind of following it loosely but crowdfunding regulations will be backed down. Honestly didn't even know they existed until this last year. Looks to me like Kickstarter is the Model T of crowdfunding.

KristineS
01-08-2013, 01:09 PM
Apparently some things are temporarily held up but it appears they will move forward.
Crowd-Funding Is Stuck In Regulatory Hell - Business Insider (http://www.businessinsider.com/crowd-funding-is-stuck-in-regulatory-hell-2012-12)

There's a good and a bad side to this. On one hand, if people are going to be able to crowdfund businesses on a massive scale, there does need to be some regulation. It would be lovely to rely on honesty and good will, but we know there are people who will game the system. On the other hand, part of the beauty of crowdsourcing is how easy it is to do and really how little risk it entailed for most people. Taking it to the next level may ruin the whole idea and it will just become another bureaucratic problem.

machine
01-08-2013, 01:31 PM
There's a good and a bad side to this. On one hand, if people are going to be able to crowdfund businesses on a massive scale, there does need to be some regulation. It would be lovely to rely on honesty and good will, but we know there are people who will game the system. On the other hand, part of the beauty of crowdsourcing is how easy it is to do and really how little risk it entailed for most people. Taking it to the next level may ruin the whole idea and it will just become another bureaucratic problem.
Absolutely true, the question is what if anything should be done about it. Let me give an example, I have lived and worked (construction) in Florida which has strict building regulations and worked in other states with lax building regulations. It is kind of a pick your poison situation. In Florida when hurricanes come through there are certainly less scammers out there, BUT good luck finding a roofer after the hurricane blows it off. People put up with keeping blue tarps on their houses for years after hurricanes. Are we so nanny state that everything must be regulated to pieces no matter that the cure is equally bad?

KristineS
01-09-2013, 12:19 PM
I think you do have to find a balance and that's sometimes hard to do. I also think that sometimes things are better left alone as they were. Crowdsourcing was a great way to find artists and small niche projects that might not have gotten funding any other way and it worked. Great things that otherwise might not have happened were getting done. I'm not entirely sure I like the idea of crowdsourcing for business. There are already methods in place to fund businesses, from loans to venture capitalists. Do we really need to ruin the beauty of crowdsourcing by regulating it. What worries me the most is that, by regulating crowdsourcing and making it more mainstream, all the artists and niche products that were being funded will now be neglected in favor of funding the next Apple Computer or Zappos shoes or whatever. That would be sad.

vangogh
01-10-2013, 07:06 PM
Interesting. I vaguely remember hearing about that. I do see good and bad. I'm sure we'll see plenty of scammers looking for funding when they have nothing to fund. At the same time this should help small businesses get funding for ideas and projects that they might not otherwise get money for. It'll be interesting to see what happens with this and assuming it goes through what the result will be to small business.

Paul
01-12-2013, 06:11 PM
Some recent changes in laws will make crowdfunding a brand new deal, this will become serious business I think, not some obscure thing most have never heard of.

I have an idea that I am kicking around, may try it myself in a few months.



It is absolutely a new deal!

I’ve been involved with raising funds for micro-cap small business for many years, and helping companies go public.

I won’t bore you with all the regs, rules, laws and agencies that you have to deal with except for a few that relate to crowdfunding.

The SEC/FINRA and others have established certain regulations that are both good and bad.

One major one is that companies, that intend to go public, may NOT solicit funding via the internet or print media. All investments must be made only through an official of the company or a broker. This is a serious regulation. What this means is that only people who the company has direct relationship with, without any previous solicitation, may invest. The reason for this rule is to stop scammers from going wild soliciting for investments. There was a time where they’d fill a room of ‘prospects” and pitch them on the hot new deal. The problem with the rule is twofold. One, it makes raising money very difficult. Two, it prohibits people from having the opportunity to invest in what may really be the next hot deal.

The other major regulation is that investors must be “accredited”, aka “sophisticated investors”. This means that to invest you must have a high net worth and a high income. I think the latest reg is 1 million in assets and $ 200,000 in income. There is some allowance for people with less if they sign an affidavit that the total loss of the investment won’t affect their life…etc.

The net effect of these two rules is that most people never have an opportunity to invest at the ground floor level. They don’t even get to know about these investment opportunities. While these rules did stop a lot of fraud it also infringed on people’s right to invest. These rules perpetuate the axiom “the rich get richer”, because only those who are already rich may invest.

Most people know of the Wall Street IPO’s, where the offering is underwritten by major investment banks and then sold, pre –trading, to their “special customers”. It’s pretty slick in that the investment bank “buys” shares from the company and then “sells” them in the IPO at a profit. It’s a very fast turnaround for the banks and their “special customers”.

What most people don’t know is the many “self underwritten” offerings by small companies. The big investment banks aren’t interested because their funding needs are too small. Investment banks want deals in the 10’s,and 100’s of millions. Most of the small offerings are under 5 Million, and many are much smaller. So, these companies have to “do it themselves”. I won’t go into the details but it’s a very active world with good guys and bad guys sharing the same space.

As it relates to crowdfunding, it is the elimination of the no soliciting rule and the accredited investor rule that the SEC is struggling with. It will open up the investment opportunities for regular people and make it much easier for companies to raise capital. However, it also will open the doors for the less than honest to participate.

Personally, I am looking for a “web savvy” partner to build a crowdfunding site. Not so much to make money in the short term but to be in position when the SEC does allow equity sales. I have all the necessary professionals that will be needed to deal with the regulations and help the companies go public including SEC attorneys, SEC auditors, market makers, brokers, PR firms etc as well as access to numerous companies that would want to participate. Perhaps, more importantly, I know the right way and the wrong way and I know how to handle the bad guys.

I do believe it is going to be an incredible opportunity, when it happens.

vangogh
01-17-2013, 02:20 AM
As I was reading your post more the issues you mentioned were sounding very familiar. I want to say I read an article in a magazine (maybe Fast Company) a few months back talking about all of this. I remember the whole opening the doors for small investors vs opening those same doors for scammers being discussed. I think sites like KickStarter are showing that crowdfunding can be a good thing to help ideas come to life and in time whatever it takes to allow more of it to happen will happen.

Paul
01-18-2013, 10:44 PM
I heard the SEC is going to drag their feet on this. It really threw them for a loop because it just about throws all the old rules out the window.
The much maligned SEC has worked for decades trying to get the right balance for companies and investors. It’s like starting from scratch for them.

Zman
01-21-2013, 01:51 PM
I used to make games and apps for iPhone/ iPad and the marketing group I was in had several members who used Kickstarter to fund their projects. It was very well received in the game creation and marketing circles as far as I could tell.

I actually donated to a couple projects as they were offering an "inside look" at their game creation for a donation. If you have a way to market something in your project that would be appealing to others without lessening the quality of your project it could be a nice way to get funding you would normally not have access to unless you sought out a VC.

Also, this is not a "loan" as if you were to go to Prosper.com. They are basically donations and do not have to be repaid.

Good luck!

AlexB1
01-23-2013, 09:58 AM
The movement from donation-based crowdfunding to securities-based is one I've been following and working on for a while (in my former life as a startup lawyer and then following that). Donation-based is mostly fine from a regulatory perspective, but the SEC is really struggling to make sure appropriate rules are in place for securities-based (meaning that individuals without a high net worth / salary can participate). The process is going to be much more expensive and time consuming than a lot of people think (both in terms of building an SEC regulated "portal" and using one to raise money. Frankly, people frequently don't realize this, but even Kickstarter is not easy money. The products that have the best success there have already had a lot of money, time and effort put into them. In a sense you can gauge market interest before you build the product, but you still have to get the product far enough along to show on Kickstarter.

And Zman is correct that on Kickstarter you are dealing with a donation (albeit one that often comes with a "perk" or "reward"), not a loan like you would get on Prosper (which is a personal loan). My company (FundingCommunity.com) is getting ready to launch a product that is in between the two. It is similar to a Prosper, in that you have many individuals contributing small amounts, but it is entirely for small business loans.

vangogh
01-25-2013, 02:43 AM
I used to make games and apps for iPhone/ iPad and the marketing group I was in had several members who used Kickstarter to fund their projects. It was very well received in the game creation and marketing circles as far as I could tell.

That seems like a good fit. If I read right, it sounds like you yourself didn't have a project on KickStarter, but the people you know who did generally had a good experience with it.


The products that have the best success there have already had a lot of money, time and effort put into them. In a sense you can gauge market interest before you build the product, but you still have to get the product far enough along to show on Kickstarter.

I can see that just by watching some of the videos. There are some where you can a lot of work has already gone into the product. There are working prototypes that look like finished products and the money is serving as the next round of funding and not the first. Then there are other products where there doesn't seem to be as much in the way of real product and it's still mostly idea. The former do seem to have more people contributing.

There are also times where someone I know (know in the online sense) posts a project like writing a book or building a site. There may not be a product yet, but knowing of the person I trust there will be one. They also get contributions, though it's usually from an existing audience already familiar with the person and likely to have already received free products in the form of a blog or videos or whatever the person has built an audience around.

AlexB1
02-07-2013, 05:41 PM
There are also times where someone I know (know in the online sense) posts a project like writing a book or building a site. There may not be a product yet, but knowing of the person I trust there will be one.

Exactly. And that type of really early stage project is most successful on kickstarter when the first 20% or comes from people known by the creator. After that others start to trust that it might be possible and you get a decent network effect. There are actually all sorts of great stats out there on what makes a successful project (Stats - Kickstarter (http://www.kickstarter.com/help/stats))

vangogh
02-07-2013, 07:28 PM
I hadn't seen the stats page before. Pretty cool.

I would think when it's a project funded by your existing community, you'd already need a sizable community. Still it's a nice way to start a grow some KickStarter funding.

KristineS
02-08-2013, 11:39 AM
I like the successful and unsuccessful dollars stat. I wonder if that means projects that worked and projects that failed, or projects that got fully funded and projects that didn't achieve full funding?

AlexB1
02-08-2013, 11:57 AM
I think it's projects that received funding (ie. hit their target) and those that didn't (missed their target). Kickstarter tries to avoid getting into the "worked vs. failed" product game since those stats are a lot uglier (and have even led to law suits - When Kickstarter Investors Want Their Money Back | Inc.com (http://www.inc.com/eric-markowitz/when-kickstarter-investors-want-their-money-back.html))

vangogh
02-12-2013, 02:41 AM
That makes sense. Success and failure of the project have more to do with whether or not if received it's funding target. Plus from KickStarter's perspective avoiding the word failure is better PR.

I had no idea people were getting sued for not delivering a product. I guess you had to know it would happen. I think the guy who sued them though was wrong here. It should be clear you aren't buying a product. It's not that hard to understand what's going on and the guy with the project didn't seem like anyone trying to scam anyone. Just someone who didn't do a good job when it came to getting his business going. Seems spiteful to sue someone over $70.

indycine
11-05-2014, 08:01 AM
I understand how people feel uneasy with Kickstarter, it seems a bit like begging! I've coached several friends through creative campaigns, and they all raised their money. I felt, when I first saw it, that it was too much like begging. I resolved it in my own mind, when a friend said, "So is all fundraising when you think about it." I found that Kickstarter projects are more like selling your product in advance, with their "pre-sales revenue" actually funding the project. No one is coerced to donate, if the project isn't funded, all donations are refunded. Everybody is free to choose, although the process takes at least a month, and often you need the money sooner, like now! So, I use it on projects where I have more time.

MikeyBW
12-19-2014, 10:20 AM
I think Kickstarter is a fantastic idea. Somewhere that people who have money to spare and want to fund ideas, concepts and businesses they truly believe in? What could be better than that?