Kickstarter is a crowdfunding platform that allows creative types and entrepreneurs to raise capital from a crowd of people to reach a specific funding goal for a project launch.
Thousands of projects are launched on the platform weekly, where ‘backers’ can donate to campaigns that they care about in exchange for rewards such as a product, service, or insider access.
Kickstarter Origins
Kickstarter itself launched on April 28, 2009, founded by Perry Chen, Yancey Strickler, and Charles Adler.
After reportedly raising $10 million in funding from angel investors such as co-founder and CEO of Twitter Jack Dorsey, Kickstarter was one of the earliest crowdfunding platforms — following in the footsteps of Indiegogo, widely considered its largest competitor, which launched in 2008.
Since its inception, Kickstarter has served as an outstanding alternative option for entrepreneurs to launch creative projects in popular categories such as:
In total, Kickstarter has 15 different categories that creators can launch in. Every project must fit into one of those categories. To learn more about the Kickstarter rules, visit this page.
Kickstarter Community
According to their website, Kickstarter boasts a community of almost 20 million backers, with at least 6 million of those returning as repeat backers — meaning they have backed more than one campaign.
Some other notable to-date statistics:
- Over $5.7 billion total dollars pledged to Kickstarter projects
- Nearly 200,000 successfully funded projects (current success rate: 38%)
- Over 70.5 million total pledges made
Of all successfully funded projects:
- More than 66% of those raised less than $10,000
- Less than 4% raised more than $100,000
- 531 campaigns raised more than $1 million
Most projects launch on Kickstarter with goals of less than $10,000. On a percentage-basis, projects underneath that threshold have a better chance of reaching their funding goal.
Still, viral campaigns are much a possibility on the Kickstarter platform. Here are some of the most successful campaigns of all time:
- Pebble Time Smartwatch: Raised $20.38 million from 78,471 backers
- Coolest Cooler: Raised $13.29 million from 62,642 backers
- Froshaven Game: Raised $19.8 million from 83,193 backers
- Critical Role Film: Raised $11.39 million from 88,887 backers
For a deep-dive into Kickstarter statistics, visit this article or this podcast.
Fixed Funding
Unlike Indiegogo, Kickstarter has only one funding option: fixed funding.
That means creators only receive the funds pledged to their campaign if they meet their funding goal. If they don’t meet their funding goal, then backers’ credit cards will not be charged.
Should a creator be a part of the 38% of campaigns that are successful, they are required to deliver on promised rewards.
Backers tend to prefer campaigns with this fixed funding model as opposed to flexible funding — where creators keep funds whether they meet their goal or not. Indiegogo does have a flexible funding option, but their platform’s campaign success rates are much lower, at 11%.
‘Projects We Love’
The Kickstarter team frequently updates a page known as Projects We Love, where hot projects are specially selected to be featured on the platform.
While Kickstarter is generally considered to be less attentive to creators than their Indiegogo counterpart, they do promote projects through mediums such as:
- The Kickstarter Newsletters
- Social Media Platforms
- Featured on Home Page
Kickstarter Fees & More
Kickstarter applies a 5% fee on the total amount of funds raised for successful projects.
Payment processors also apply an additional 3-5% fee for credit card transactions.
Unsuccessful projects are not charged a fee.
Unlike other forms of fundraising or investment, Kickstarter does not claim ownership of projects that are launched on the platform. That means they have no equity as projects move beyond the platform to things like Indiegogo InDemand or eCommerce.
There are also no fees associated with creating and launching a campaign page. Once launched, pages both successful and unsuccessful are permanently archived and accessible to the public.
After a funding duration period has been completed, creators cannot upload or remove media from the site.
What Types of Projects Are Successful on Kickstarter?
Kickstarter has a reputation for being a great platform for creative-type projects.
Projects that typically receive the most funding on Kickstarter:
- Build a crowd before launch through a dedicated pre-launch strategy.
- Have an engaging and emotionally provoking pitch video
- Create desirable rewards that entice backers to support the project
- Invest about 10% of their funding goal in marketing to increase outreach
Learn More About Kickstarter
CrowdCrux has been a thought-leader surrounding all things crowdfunding since its inception way back in 2011.
For more great resources about Kickstarter and how to launch a successful campaign, make sure to check out:
- Founder Salvador Briggman’s Youtube Channel
- The Crowdfunding Demystified Podcast
- The CrowdCrux blog (you’re here right now!)
- The CrowdCrux weekly newsletter
Thinking about launching your own Kickstarter campaign?
Hiring an agency makes it much more likely that you successfully reach your funding goal through proven practices. Check out this list of agencies that we recommend.
And if you’re ready to take the leap of faith, book a coaching call with the founder of CrowdCrux Salvador Briggman today! He’s helped bring hundreds of campaigns to life, and he’s ready to assist you in smashing your funding goal.
