Kickstarter
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| Name | Kickstarter |
| Founded | April 2009 |
| Founders | Perry Chen; Yancey Strickler; Charles Adler |
| Headquarters | Brooklyn, New York City |
| Industry | Crowdfunding; Technology; Creative industries |
| Area served | Worldwide |
Kickstarter is a US-based crowdfunding platform that connects creators with backers to fund creative projects in areas such as film, music, publishing, technology, and games. Founded in 2009 by Perry Chen, Yancey Strickler, and Charles Adler, the platform popularized an all-or-nothing pledge model that influenced later services and incubated projects across the United States, United Kingdom, and other markets. It has been a focal point for makers, artists, and entrepreneurs seeking direct financial support without traditional institutional intermediaries like venture capital firms, record labels, or publishing houses.
History
Kickstarter was launched in April 2009 after a prototype phase and early demonstrations at events including SXSW and Web 2.0 Summit, with founders Perry Chen, Yancey Strickler, and Charles Adler building on prior experiments such as the consultancy efforts of Chen and the creative direction of Adler. Early milestones included rapid growth during the late-2000s recession, partnerships with cultural institutions like the Smithsonian Institution, and visibility from high-profile campaigns such as those led by filmmakers and designers associated with festivals like Sundance Film Festival and Cannes Film Festival. In 2013 the company reorganized governance and staff as it scaled; by mid-2010s it remained privately held while attracting attention from media outlets such as The New York Times and The Guardian. Leadership changes, including Strickler's departure and measures to address creator-backers relations, marked its evolution alongside competitors like Indiegogo and platforms inspired by precedents such as ArtistShare.
Business model and operations
Kickstarter operates on an all-or-nothing funding model: creators set a funding goal and deadline; if the goal is met, pledges are collected; if not, no funds change hands. The platform charges a platform fee and payment processing fees; these monetization choices reflect practices used by online marketplaces like eBay and payment processors like Stripe and PayPal, which have been partners or comparators in industry analyses. Project categories mirror creative industries—film production, board games, design, technology hardware, comics—and the platform enforces creator eligibility requirements akin to standards used by institutions such as Apple's App Store and Amazon's seller programs. Operationally, Kickstarter maintains offices in Brooklyn and coordinates with legal counsel familiar with regulations such as securities rulings by the U.S. Securities and Exchange Commission when assessing claims about equity or investment. The company has navigated international expansion, local payment partners, and tax implications referenced by agencies like the Internal Revenue Service.
Platform features and policies
The platform offers project pages with multimedia descriptions, reward tiers, stretch goals, and creator updates; these features resemble crowdfunding functionality found on competitors and in academic studies by institutions like Harvard University and Massachusetts Institute of Technology. Policies include restrictions on projects offering equity, charitable fundraising rules informed by guidance from organizations such as the Federal Trade Commission, and content guidelines that intersect with intellectual property law as adjudicated in courts like the United States District Court for the Southern District of New York. Kickstarter provides tools for creator-backers communication, dispute resolution, and payment disbursement, and periodically updates terms of service and community guidelines in response to legal developments including hearings held before bodies like the United States Congress examining crowdfunding oversight. Platform features have evolved to include curated categories, staff-edit picks, and integration with social networks and press outlets including Twitter and Facebook-era distribution networks.
Notable campaigns and impact
High-profile campaigns have included projects by filmmakers and designers who later partnered with distributors such as Netflix or A24, game designers whose titles reached retailers like GameStop and Target, and musicians who used the platform to release albums with independent labels like Sub Pop and Merge Records. Examples span a range of creative works connected to institutions and events including Comic-Con International and museum exhibitions at the Museum of Modern Art. Kickstarter-funded projects have won awards at festivals such as Sundance Film Festival and Tribeca Film Festival, attracted coverage in outlets like Rolling Stone and Wired, and contributed to the growth of sectors exemplified by successful hardware campaigns that drew comparisons with product launches by Pebble Technology and other crowdfunded companies. The platform has been studied in research published by universities including Stanford University and Columbia University for its effects on creative entrepreneurship, cultural production, and market validation.
Criticism and controversies
Criticism has focused on project delays, failed deliverables, transparency, and the adequacy of consumer protections; affected backers and creators have invoked legal mechanisms including class actions filed in courts such as the United States District Court for the Northern District of California. Controversies also involved disputes over intellectual property and platform moderation that intersected with debates in media outlets like The New Yorker and The Atlantic. Some creators faced allegations concerning misuse of funds and misrepresentation, prompting scrutiny from regulatory bodies including the Federal Trade Commission and legislative inquiries by members of Congress. The platform's all-or-nothing model and policies on prohibited projects have generated comparisons with regulatory frameworks in the European Union and operational responses to competitors such as Indiegogo and services offering equity crowdfunding under frameworks like the Jumpstart Our Business Startups Act.