Kickstarter

Kickstarter. It is an American public benefit corporation that operates a global crowdfunding platform focused on creative projects. Launched in 2009 by Perry Chen, Yancey Strickler, and Charles Adler, the platform has become a seminal force in funding independent art, design, technology, and film endeavors. Its all-or-nothing funding model requires projects to meet their financial goals before creators receive any money, distinguishing it from other fundraising methods.

History

The concept for the platform was conceived by Perry Chen in 2002, stemming from his frustration in organizing a concert in New Orleans. He later partnered with Yancey Strickler, a music journalist, and Charles Adler, a designer, to develop the idea. After a private beta launch in 2009, the site publicly launched on April 28, 2009. One of its earliest successful projects was funding for a drawing machine created by artist Dangerdust. The company's growth was rapid, and by 2012 it was hosting major campaigns like the Pebble Watch, which raised over $10 million. In 2015, the company reincorporated as a public benefit corporation, a legal structure committing it to consider societal good alongside profit. Key leadership changes included Aziz Hasan becoming CEO in 2019.

Business model

The platform operates on an all-or-nothing funding model, where project creators set a funding goal and deadline. If the goal is met or exceeded by the deadline, funds are collected from backers; if not, no money changes hands. The company generates revenue by taking a 5% fee from successfully funded projects. Payment processing is handled by Stripe, which charges additional fees. Creators offer rewards to backers, such as early access to products or exclusive experiences, rather than offering equity or financial returns. This model is distinct from equity crowdfunding platforms like SeedInvest and differs from the flexible funding approach used by some competitors.

Notable projects

The platform has hosted thousands of successful campaigns across diverse categories. In technology, the Pebble Watch became a landmark, raising over $10 million and demonstrating mass demand for smartwatches. The Coolest Cooler also gained significant attention and funding. In tabletop games, projects like Exploding Kittens and the reissue of the HeroQuest board game have broken records. Film projects have included major independent works like The Veronica Mars Movie Project, which revived the cult television series, and the critically acclaimed documentary Inocente. Other significant campaigns have supported the Reading Rainbow revival hosted by LeVar Burton and the creation of the MST3K revival on Netflix.

Impact and reception

The platform has had a profound impact on creative industries by democratizing access to capital and validating market demand. It has enabled the commercial viability of niche products, such as innovative board games and independent film, that traditional venture capital or studio systems might overlook. The model has inspired numerous other crowdfunding platforms, including Indiegogo and Patreon. It has been praised for fostering direct connections between creators and communities. The company's transition to a public benefit corporation was widely noted as a significant move in corporate governance. Successful projects often receive extensive media coverage in outlets like The New York Times and Wired.

Criticisms and controversies

Despite its success, the platform has faced several criticisms. A primary issue is the potential for project failure, where creators receive funds but fail to deliver the promised product, as seen with high-profile cases like the Zano drone and the Mighty No. 9 video game. There have been accusations of intellectual property theft, where projects allegedly copy existing ideas. The platform's moderation and curation policies have also been questioned, particularly regarding decisions to remove or allow controversial projects. Furthermore, some critics argue the model can exacerbate economic inequalities by favoring projects with pre-existing audiences or strong marketing resources. The company has also faced internal labor disputes, including a 2020 effort by employees to form a union with the Office and Professional Employees International Union.

Category:Crowdfunding Category:Public benefit corporations Category:Companies based in Brooklyn Category:Internet properties established in 2009