Kickstarter and the magic of crowdfunding

6556438005_03e2dbe478_oSuppose you think you have the idea of a lifetime. You want to create a beer coaster that automatically lets the bartenders know when you need a refill. This idea naturally came out when you are out with your friends and you are in an ‘inspirational’ mood. You have the know-how and the materials to create a rough prototype. The product looks promising and many attempts have been made to sell it to companies, but no one is buying the idea. And you don’t have the many to let this product go into production. So when you are back at the bar again with your friends, the bartender tells you about this magical online place where everyone can ask the community for the money to start the production of their invention. The place I am referring to is Kickstarter.

Kickstarter was founded in 2009 and has been largely successful ever since their creation. According to their website, the community that they have created has so far successfully funded 115,990 projects, with some projects raising more than $1 million in crowdfunded resources. Even more so, the highest recorded campaign so far has been Pebble Time, which raised over $20 million in resources. You could easily say that the sky is the limit seeing the great variety of successful campaigns being funded through Kickstarter. And it is all because of the community surrounding Kickstarter that, according to their website, hosts 12 million backers. Backers being people who have pledged money towards a campaign.

The time of waiting endlessly in line at banks for a loan for your company seem to be an image of the past. You can now use Kickstarter to create funding for everything you could possibly come up with. Even more so, according to the Canada Media Fund, these kinds of crowdfunding possess the ability to reach a bigger audience through social media. This is because, although it starts with the people you know, it quickly expands beyond your direct circle of acquaintances. Now that I think of it, the idea that I pitched in the first paragraph seems like a golden idea right now. I might as well sign up directly and perhaps you will see it in stores next year.

Sources

Canada Media Fund. (2016). Using social media effectively for your crowdfunding campaign. Retrieved from Canada Media Fund: http://crowdfunding.cmf-fmc.ca/best_practices/using-social-media-effectively-for-your-crowdfunding-campaign

Kickstarter. (2016). About Us. Retrieved from Kickstarter: https://www.kickstarter.com/about?ref=nav

Kickstarter. (2016). Stats. Retrieved from Kickstarter: https://www.kickstarter.com/help/stats?ref=hello

Zipkin, N. (2015, December 28). The 10 Most Funded Kickstarter Campaigns Ever. Retrieved from Entrepreneur: https://www.entrepreneur.com/article/235313

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2 thoughts on “Kickstarter and the magic of crowdfunding

  1. I am a big fan of the idea of Kickstarter as it helps business start ups bypass monopolies. My only concern is the lack of regulation. I have definitely heard stories of products reaching their fundraising goal and then not delivering on promises that were made in development. It does not appear to be too difficult to “take the money and run”. Kickstarter is definitely the future of entrepreneurship, but it probably still has some bugs to work out. Nice post!

    Like

  2. Organizations like this obviously realize the importance of social media and decide to use it to their advantage instead using the traditional methods.

    Like

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