Kickstarter

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Kickstarter, Inc.
Kickstarter logo.svg
HeadquartersNew York City, New York State, U.S.
Founder(s)
Websitewww.kickstarter.com
Alexa rankDecrease 824 (May 2014)[1]
Type of siteCrowd funding
Launched28 April 2009
 
  (Redirected from Kickstarter.com)
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This article is about the crowdfunding site. For the motor kickstarter, see kick start and starter (engine). For other uses, see Kickstart (disambiguation).
Kickstarter, Inc.
Kickstarter logo.svg
HeadquartersNew York City, New York State, U.S.
Founder(s)
Websitewww.kickstarter.com
Alexa rankDecrease 824 (May 2014)[1]
Type of siteCrowd funding
Launched28 April 2009

Kickstarter is a crowdfunding platform.[2] The company’s stated mission is to help bring creative projects to life.[3] Kickstarter claims it has received over $1 billion in pledges from 5.7 million donors to fund 135,000 projects, such as films, music, stage shows, comics, journalism, video games, and food-related projects.[4]

People who back Kickstarter projects are offered tangible rewards and special experiences in exchange for their pledges.[5] This model traces its roots to subscription model of arts patronage, where artists would go directly to their audiences to fund their work.[6]

History[edit]

Kickstarter launched on April 28, 2009, by Perry Chen, Yancey Strickler, and Charles Adler.[7] The New York Times called Kickstarter "the people's NEA".[8] Time named it one of the "Best Inventions of 2010"[9] and "Best Websites of 2011".[10] Kickstarter reportedly raised $10 million funding from backers including NYC-based venture firm Union Square Ventures and angel investors such as Jack Dorsey, Zach Klein and Caterina Fake.[11] The company is based in the Greenpoint section of Brooklyn.[12]

Andy Baio served as the site's CTO until November 2010, when he joined Expert Labs.[13] Lance Ivy has been Lead Developer since the website launched.[14] On February 14, 2013, Kickstarter released an iOS app called Kickstarter for the iPhone.[15] The app is aimed at users who create and back projects and is the first time Kickstarter has had an official mobile presence.[16]

On October 31, 2012, Kickstarter opened to projects based in the United Kingdom.[17]

On September 9, 2013, Kickstarter opened to projects based in Canada.[18]

On November 13, 2013, Kickstarter opened to projects based in Australia and New Zealand.[19]

Model[edit]

Kickstarter is one of a number of crowdfunding platforms for gathering money from the public, which circumvents traditional avenues of investment.[20][21] Project creators choose a deadline and a minimum funding goal. If the goal is not met by the deadline, no funds are collected, a kind of assurance contract.[22] Money pledged by donors is collected using Amazon Payments.[23] The platform is open to backers from anywhere in the world and to creators from the US, UK,[24] Canada,[25] Australia and New Zealand.[19]

Kickstarter takes 5% of the funds raised.[26] Amazon charges an additional 3–5%.[27] Unlike many forums for fundraising or investment, Kickstarter claims no ownership over the projects and the work they produce. The web pages of projects launched on the site are permanently archived and accessible to the public. After funding is completed, projects and uploaded media cannot be edited or removed from the site.[28]

There is no guarantee that people that post projects on Kickstarter will deliver on their projects, use the money to implement their projects, or that the completed projects will meet backers' expectations. Kickstarter advises backers to use their own judgment on supporting a project. They also warn project leaders that they could be liable for legal damages from backers for failure to deliver on promises.[29] Projects might also fail even after a successful fund raise when creators underestimate the total costs required or technical difficulties to be overcome.[30][31]

Projects[edit]

On June 21, 2012, Kickstarter began publishing statistics on its projects.[32] As of July 24, 2013, there were 107,645 launched projects (3,990 in progress), with a success rate of 43.99%[clarification needed]. The total number of dollars pledged was $717 million.[33]

The business has grown quickly in its early years. In the year 2010, Kickstarter had 3,910 successful projects and $27,638,318 pledged. The corresponding figures for 2011 were 11,836 successfully funded projects and $99,344,381 pledged; and there were 18,109 successfully funded projects, $319,786,629 pledged in 2012.[34][35]

February 9, 2012, saw a number of milestones set by Kickstarter. A dock made for the iPhone designed by Casey Hopkins became the first Kickstarter project to break a million dollars pledged. A few hours later, a project by computer game developers Double Fine Productions to fund a new adventure game reached the same figure, having been launched less than 24 hours earlier, and finished with over $3 million pledged.[36] This was also the first time Kickstarter raised over a million dollars in pledges in a single day.[37] On May 18, 2012, The Pebble E-Paper Watch raised $10,266,845 to become the most funded project in Kickstarter history.[38]

In July 2012, Wharton professor Ethan Mollick and Jeanne Pi conducted research into what contributes to a project’s success or failure on Kickstarter. Some key findings from the analysis were that increasing goal size is negatively associated with success, projects that are featured on the Kickstarter homepage have an 89% chance of being successful, compared to 30% without, and that for an average $10,000 project, a 30-day project has a 35% chance of success, while a 60-day project has a 29% chance of success, all other things being constant.[39]

The ten largest Kickstarter projects by funds raised are listed below. Among successful projects, most raise between $1,000 and $9,999. These dollar amounts drop to less than half in the Design, Games, and Technology categories. However, the median amount raised for the latter two categories remains in the four-figure range. There is substantial variation in the success rate of projects falling under different categories. Over two thirds of completed dance projects have been successful. In contrast, fewer than 30% of completed fashion projects have reached their goal. Most failing projects fail to achieve 20% of their goals and this trend applies across all categories. Indeed over 80% of projects that pass the 20% mark reach their goal.[33]

Categories[edit]

Creators categorize their projects into one of 13 categories and 36 subcategories.[40] They are: Art, Comics, Dance, Design, Fashion, Film and Video, Food, Games, Music, Photography, Publishing, Technology and Theater. Of these categories, Film & Video and Music are the largest categories and have raised the most amount of money. These categories, along with Games, account for over half the money raised.[33] Video games and tabletop games alone account for more than $2 out of every $10 spent on Kickstarter.[41]

Guidelines[edit]

To maintain its focus as a funding platform for creative projects, Kickstarter has outlined three guidelines for all project creators to follow: creators can fund projects only; projects must fit within one of the site's 13 creative categories; and creators must abide by the site's prohibited uses (including charity and awareness campaigns). Kickstarter has additional requirements for hardware and product design projects. These include[42][43]

The guidelines are designed to reinforce Kickstarter’s position that people are backing projects, not placing orders for a product. To underscore the notion that Kickstarter is a place in which creators and audiences make things together, creators across all categories are asked to describe the risks and challenges a project faces in producing it. This educates the public about the project goals and encourages contributions to the community.[45]

Notable projects and creators[edit]

At $8.5 million, the Ouya is the 2nd most successful Kickstarter campaign.

Several creative works have gone on to receive critical acclaim and accolades after being funded on Kickstarter. The documentary short "Sun Come Up" and documentary short "Incident in New Baghdad" were each nominated for an Academy Award;[46][47] contemporary art projects "EyeWriter" and "Hip-Hop Word Count" were both chosen to exhibit in the Museum of Modern Art in 2011;[48] filmmaker Matt Porterfield was selected to screen his film Putty Hill at the Whitney Biennial In 2012;[49] author Rob Walker's Hypothetical Futures project exhibited at the 13th International Venice Architecture Biennale;[50] musician Amanda Palmer's album "Theatre is Evil" debuted at No. 10 on the Billboard 200;[51] designer Scott Wilson won a National Design Award from Smithsonian’s Cooper-Hewitt, National Design Museum following the success of his TikTok + LunaTik project;[52] the Kickstarter funded GoldieBlox toy gained nationwide distribution in 2013;[53] and approximately 10% of the films accepted into the Sundance, SXSW and Tribeca Film Festivals are projects funded on Kickstarter.[54][55]

Numerous well-known creators have used Kickstarter to produce their work, including: musicians Amanda Palmer,[56] Daniel Johnston,[57] Stuart Murdoch[58] and Tom Rush;[59] filmmakers and actors Bret Easton Ellis,[60] Colin Hanks,[61] Ed Begley, Jr.,[62] Gary Hustwit,[63] Hal Hartley,[64] Jennie Livingston,[65] Mark Duplass,[66] Matthew Modine,[67] Paul Schrader,[68] Ricki Lake,[69] Whoopi Goldberg,[70] Kristen Bell and Zana Briski; authors and writers Dan Harmon,[71] Kevin Kelly,[72] Neal Stephenson,[73] and Seth Godin;[74] photographers Spencer Tunick,[75] Shane Lavalette,[76] and Gerd Ludwig;[77] game developers Tim Schafer,[78] Keiji Inafune, Brian Fargo,[79] and Rand Miller;[80] designer Stefan Sagmeister;[81] animator John Kricfalusi; Star Trek actor John de Lancie; comedian Eugene Mirman;[82] and custom guitar maker Moniker.[83]

The Glowing Plant project was the first and only Kickstarter project to fund the development of a genetically modified organism (GMO). After successful project funding of nearly $500,000, Kickstarter decided to no longer allow synthetic biology projects.[44]

Top projects by funds raised[edit]

Ten largest successfully completed Kickstarter projects by total funds pledged (only closed fundings are listed)[84]
RankTotal USDProject nameCreatorCategory % fundedBackersClosing date
110,266,845Pebble: E-Paper Watch for iPhone and AndroidPebble TechnologyDesign10,26668,9292012-05-18
28,596,474Ouya: A New Kind of Video Game ConsoleOuya Inc.Video Games90463,4162012-08-09
36,225,354Pono Music - Where Your Soul Rediscovers MusicPonoMusic TeamTechnology77818,2192014-04-15
45,702,153Veronica Mars movie[85]Rob Thomas[86]Film & Video28591,5852013-04-12
54,188,927Torment: Tides of NumeneraInXile EntertainmentVideo Games46574,4052013-04-05
63,986,929Project EternityObsidian EntertainmentVideo Games36273,9862012-10-16
73,845,170Mighty No. 9[87]Comcept and Inti CreatesVideo Games42767,2262013-10-01
83,429,235Reaper Miniatures Bones: An Evolution Of Gaming Miniatures[88]Reaper MiniaturesBoard Games11,43017,7442012-08-25
93,401,361The Micro: The First Truly Consumer 3D Printer[89]M3D LLC3D Printing6,80211,8552014-05-07
103,390,551The Dash – Wireless Smart In Ear Headphones[90]BRAGI LLC.Product Design1,30415,9982014-03-31

Project cancellations[edit]

Both Kickstarter and project creators have canceled projects that appeared to have been fraudulent. Questions were raised about the projects in internet communities related to the fields of the projects. The concerns raised were: apparent copying of graphics from other sources; unrealistic performance or price claims; and failure of project sponsors to deliver on prior Kickstarter projects.

A small list of canceled projects include:

In addition, over 15 projects have been completely removed in lieu of public cancellation.[96] Kickstarter appears to reserve project removal for egregious claims of copyright or other severe breaches of policy.[97][98]

Controversies[edit]

Patent disputes[edit]

See also[edit]

References[edit]

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External links[edit]