The Kickstarter crowdfunding platform has helped more than 200,000 projects successfully reach their funding goal. In fact, almost 20 million backers have shown up to raise nearly $6 billion for projects since the platform’s inception in 2009.
As a result, creators across categories such as design, tech, arts, and games — to name just a few — have flocked to the platform seeking the potential for seed funding to get their dream project off the ground.
And individuals seeking to launch the next great smartphone app or web application are no exception.
However, before you start building out your campaign to hit that launch button, there are some things you should be aware of. Is Kickstarter the best option for your software campaign? What are the rules? Could another crowdfunding platform such as Indiegogo or WeFunder be a better option?
We’re answering all those questions for you in this article! Let’s dive right in.
Project Constraints
First and foremost, you’ll want to be aware of some the rules surrounding software projects on Kickstarter to ensure that you’re meeting all necessary guidelines. Let’s take a quick look at those now.
Kickstarter cannot be used to fund software projects not run by the developers themselves.
Of course, at the end of the day, it’s up to Kickstarter to enforce these curation rules. But essentially, if you are not a programmer, you can’t raise money on Kickstarter for a software project. Kind of a bummer, huh?
One way to get around this is to get a developer to join your team and launch the project as a joint effort. See this article for more: Do you need a cofounder for your crowdfunding campaign?
Unfortunately, this guideline knocks out a lot of typical startup software projects. The key here is that the word “focused” can be interpreted liberally or conservatively. It’s up to the discretion of the platform.
For example, Kickstarter rejected the Dizzlike campaign (a Dizzlike button to counter Facebook’s “like” button). To protect yourself against this, you could reach out to the team in advance and see if they’ll get back to you.
Keep in mind that these are humans just like you and me that are approving these projects. If you are not approved, you get one appeal to Kickstarter to further explain why your project is within guidelines.
Kickstarter cannot be used to sell equity or solicit loans.
The fact that you can’t use equity as a perk makes it harder to come up with creative ideas to reward your backers. If you are not creative, your best bet would be to check out other successful campaigns in your category to see the types of rewards they are offering backers.
This is why equity crowdfunding has made such a significant emergence in the software crowdfunding space. Let’s take a look at this and some other alternatives to Kickstarter for your software project.
Alternative Platforms to Kickstarter for Software
Aside from Kickstarter, many software creators will opt to launch their campaign on what’s touted to be Kickstarter’s largest competing platform: Indiegogo.
In recent years, Indiegogo has more or less taken the reigns from Kickstarter when it comes to software projects. This is for a couple of reasons:
- Their rules are less stringent — more software campaigns are approved
- The audience / backer network on Indiegogo is tech-obsessed; they’re always looking for new software solutions to put their money towards
- The platform allows for flexible funding, meaning that the creator keeps all the money they raise without reaching their funding goal. (Proceed with this strategy with caution: find out why here.)
Another option for you is to launch your campaign on an equity crowdfunding platform such as WeFunder, StartEngine, or Republic. These platforms seek investors rather than backers, offering an equity stake in the future profits of your company going forward.
This is an extremely powerful tool for software entrepreneurs because equity is a very compelling reward. To learn more about equity crowdfunding and what it can do for your campaign, visit this article:
6 Equity Crowdfunding Pros and Cons
Final Thoughts – Should You Launch Your Software Campaign on Kickstarter?
From my research, I’ve come to the conclusion that a lot of software creators struggle to raise funds via a rewards-based crowdfunding model on Kickstarter. This is because:
- The backer network on Kickstarter isn’t especially primed/interested in software projects
- The rules are extremely stringent; many campaigns get rejected
- It’s difficult to build rewards that are compelling enough to entice backers.
Of course, there are exceptions, as exemplified by Fluent Forever App which raised $587,000 and Seedtime which raised $341,000. If you’re dead set on on Kickstarter, feel free to study those campaigns and these others to see how they were successful.
But if you’re a little bit more flexible, we recommend looking at Indiegogo.
And perhaps better yet, equity crowdfunding options.
Wanna stay in touch about all things crowdfunding and what platform is the best fit for your product? Here at CrowdCrux, we’re leading the pack surrounding crowdfunding education. Check out these resources:
- Subscribe to the CrowdCrux email newsletter for weekly insights directly to your inbox.
- Visit our Youtube Channel for all the best insider tips, tricks, and secrets.
- Check out the Crowdfunding Demystified Podcast
- The books: Equity Crowdfunding Explained and The Kickstarter Launch Formula
Ready to discuss how Indiegogo or equity crowdfunding can make your software programming dreams come true? Book a coaching call with the founder of CrowdCrux Salvador Briggman — our team loves working on software campaigns, and we have demonstrable successes from the past!
Good luck with your new web application or smartphone app! And remember, CrowdCrux is always here to bring your campaign to the next level and help you to smash your funding goal, should you need us.
