Advantages And Disadvantages Of Kickstarter

971 Words4 Pages

Kickstarter is the biggest and most popular crowdfunding platform, therefore the rules and regulations it has set for the projects soliciting the financing have become a standard in the crowdfunding field. The funds from Kickstarter are “no easy money”: in order to receive the capital, the projects should adapt to following guidelines:
• Projects must create something to share with others
• Projects must be honest and clearly presented
• Projects can’t fundraise for charity, offer financial incentives, or involve prohibited items
The projects are supposed to have a specified financial goal and the deadline for fund collection. It is crucial for the creators to provide a prototype or a specific plan for their invention, backed with the video assuring about the creator’s credibility, as well as the project’s feasibility …show more content…

As Kickstarter states:
When people back your project, they are not only giving you money, but they’re giving you permission to talk to them about your ideas and future projects [...], you now have a way to talk directly to people who want to hear from you.
It is a unique advantage for the creator launching their project on a crowdfunding platform – entrepreneurs get direct feedback from their backers and are able to benefit from the ‘wisdom of crowds’, which is sometimes more valuable than the funds obtained. Moreover, Kickstarter, as a social platform, is an important marketing tool, helping to connect with the audience and spread the word about the project. The platform itself is also actively involved in the project – firstly, by a thorough examination of the project pitched (25% of the projects are declined for non-compliance with the platform’s guidelines ) and later, by helping the creators to attracts more backers, through making the video, adjusting the

Open Document