Posted by Jorge LeClair in Entrepreneurs, artists or individuals with creative ideas are looking for funding. Somewhere out there are individuals or groups looking to help fund the right ideas. Traditionally, finding each other has not been easy. In this article, I discuss an exciting new website – kickstarter.com, which matches ideas with capital.
Kickstarter.com is an awesome social networking site that uses the power of crowd sourcing to fund creative ideas and ambitious endeavors.
Anyone can create a dedicated page with a pitch for a set amount of funding to support or ”kick start” their project, a deadline (anytime within 90 days) for their fundraising target and how they will reward contributors. Any individual or group from anyplace in the world can give through the website to the project. The only catch is that a project only receives its donated funds (minus a 5% fee taken by kickstatrer.com) if the target amount was reached or exceeded within the established deadline. In cases where projects do not reach their funding amounts, the funds are returned to their original donors. This helps protects the value of donated funds based on the belief that a project is more likely to achieve its goals if it has all the funding it requires. In exchange for backing an idea, individuals receive rewards set by the person or group asking for money. For example, if an artist is looking for funding to record an album, the artist may give each supporter a free CD.
The power of kickstarter.com is the principle that a good idea if communicated well through the power of the internet can spread fast and attract support.
Kickstarter.com believes that a large group of people can be a tremendous source of money and encouragement Aside from giving ideas the chance to be funded, the process of creating an online ask creates an environment where an idea can be enhanced through feedback. Furthermore, the process creates communities by bringing together individuals who would like to support similar innovative initiatives. It also helps a project by building a network of backers who feel invested in ensuring the project’s success.
Why are people giving money to projects on kickstarter.com? I believe it is simply because individuals wish to be part of ideas and causes they feel connected to, but cannot take on by themselves. Offering support is next best solution.
Kickstarter.com should not be seen as “easy money”, rather it is earned money. Not all ideas are funded. Success requires a well thought out idea, a captivating proposal and from the start, potential projects will need to build a relationship with those interested in supporting the project.
Examples of previously successfully funded projects:
Lumi Co. – a start-up business involving an innovative textile printing technology. Asked for $12 000 and raised $12 998.
MakerBeam – a start-up that offers an open source building set (similar to Lego/Meccano/Erector Set but users can help design the elements) Asked for $10 000, raised $17 922 .
On average successful projects pitch and receive total amounts of less than $4000. Funded ideas have been both non-profit and business projects. As the site evolves and grows in popularity, raising funds will likely become more difficult as projects compete and only the most vibrant ideas survive.
In conclusion, if you think you have a kick ass idea, then kickstarter.com might just be the right place to get the required boost.
