Kickstarter

Definition

Kickstarter is a crowdfunding platform that allows creators to raise funds for their projects by appealing to a large number of people. It connects entrepreneurs, artists, and innovators with potential backers who are interested in supporting new ideas, products, or creative works. This model not only provides financial backing but also fosters community engagement and collaborative support among backers and creators.

5 Must Know Facts For Your Next Test

1. Kickstarter was launched in 2009 and has since helped fund over 200,000 projects across various categories such as art, technology, and games.
2. Projects on Kickstarter are typically time-limited, with funding campaigns lasting around 30 days, which creates a sense of urgency for potential backers.
3. Creators can offer different tiers of rewards for backers, incentivizing higher contributions by providing exclusive items or experiences.
4. The platform operates on an all-or-nothing funding model, meaning projects must reach their funding goal within the set timeframe to receive any money pledged.
5. Kickstarter has become a significant tool for independent creators and entrepreneurs to launch innovative ideas without relying on traditional financing methods.

Review Questions

• How does Kickstarter exemplify the principles of crowdsourcing and collaborative content creation?
  • Kickstarter embodies crowdsourcing by enabling individuals to gather financial support from a large number of backers for their projects. This process encourages collaboration as backers not only provide funds but also engage with creators through comments and feedback. The interaction between creators and supporters fosters a community that can influence project development, making it a prime example of collaborative content creation.
• Discuss the significance of the all-or-nothing funding model on Kickstarter and its impact on project creators.
  • The all-or-nothing funding model is significant because it protects backers by ensuring that their contributions are only collected if the project meets its funding goal. For creators, this model reduces the financial risk associated with starting a project since they are not obligated to deliver rewards without sufficient funds. However, it also adds pressure to reach the target amount within the limited timeframe, influencing how projects are marketed and promoted.
• Evaluate the role of community engagement in the success of Kickstarter projects and its implications for future crowdfunding platforms.
  • Community engagement plays a crucial role in the success of Kickstarter projects as it builds trust and rapport between creators and backers. Successful projects often have active communication strategies, keeping supporters informed and involved throughout the campaign. This dynamic fosters loyalty and encourages word-of-mouth promotion. As crowdfunding evolves, future platforms may need to prioritize community engagement to attract and retain backers while enhancing project visibility and success rates.

Related terms

Crowdfunding: A method of raising money for a project or venture by collecting small amounts of money from a large number of people, typically via the internet.

Backer: An individual or organization that financially supports a project on crowdfunding platforms like Kickstarter in exchange for rewards or incentives.

Stretch Goals: Additional funding targets set by project creators on Kickstarter that offer extra rewards or benefits if the initial funding goal is surpassed.