Kickstarter

What is Kickstarter, PBC?

Kickstarter, PBC (Public Benefit Corporation) is a global platform that has become synonymous with creativity and innovation. Launched in 2009 by Perry Chen, Yancey Strickler, and Charles Adler, it has since transformed into a powerhouse of creative projects, raising over $7 billion from more than 21 million backers for over 233,600 projects.

How Does Kickstarter Work?

Kickstarter operates on the principle that people can support their favorite ideas by pledging money in exchange for rewards or experiences. This model is reminiscent of the subscription-based arts patronage system but with a modern twist. The platform takes a 5% fee from each project, and additional fees are charged through its payments processor.

Global Reach

The beauty of Kickstarter lies in its global reach. It has enabled creators and users from all corners of the world to connect and collaborate on projects that might otherwise never see the light of day. However, with this expansion comes challenges such as managing a diverse set of cultural expectations and legal frameworks.

Challenges and Controversies

Kickstarter has faced its share of challenges over the years. Layoffs during the COVID-19 pandemic highlighted the volatility of the platform’s business model, while its foray into blockchain technology backfired, damaging its reputation. These issues have raised questions about the reliability and transparency of projects on the platform.

Project Success Rates

The success rate of Kickstarter projects is not a guarantee of success. Only 37.45% of launched projects reach their funding goals. Factors such as goal size, project category, and even the time it takes to complete the project can significantly impact its chances of success.

Notable Projects

Kickstarter has seen some incredible successes that have gone on to receive critical acclaim. From Amanda Palmer’s album Theatre is Evil to the Ouya console, these projects not only raised funds but also gained widespread recognition and accolades.

Top-Raising Projects

Some of the most successful projects include the Peloton Interactive exercise bike, which has raised over $10 million. Other notable projects like Cards Against Humanity and Oculus Rift have also garnered significant attention and funding.

Project Categories and Guidelines

Kickstarter categorizes its projects into 13 main categories and 36 subcategories. Film & Video, Music, and Games are the largest and most funded categories. The platform has strict guidelines for project creators, including requirements for prototypes and manufacturing plans.

Prohibited Uses

Creators must adhere to these guidelines, which include bans on photorealistic renderings and genetically modified organisms (GMOs). They are also required to provide tangible rewards or experiences in exchange for pledges. These rules help maintain the integrity of the platform and ensure that backers receive what they have pledged for.

Controversies and Legal Battles

Kickstarter has not been without its controversies. Projects like the Eye3 camera drone helicopter faced cancellation due to unrealistic performance promises, while others such as the CR-1 desktop CNC by Coast Runner Industries were canceled after failing to demonstrate a working prototype.

Legal Issues

The platform has also faced legal battles over patent infringement and data breaches. In 2014, it experienced a significant data breach affecting almost 5.2 million users’ data. These incidents have raised concerns about the security and privacy of user information on the platform.

Unionization Efforts

In 2019, Kickstarter’s staff announced plans to unionize with the Office and Professional Employees International Union (OPEIU). However, this decision was met with dissent from some senior staffers. The NLRB forced a formal vote on unionization in February 2020, which resulted in 60% of the workforce joining the union.

Blockchain Plans

In December 2021, Kickstarter announced plans to develop a decentralized protocol on blockchain platform Celo. This move was met with backlash from creators and backers who feared it would undermine the trust and transparency that have made Kickstarter successful.

As we look towards the future, it’s clear that Kickstarter will continue to evolve. The platform has already shown its resilience and adaptability in the face of challenges. Whether through innovative projects or legal battles, Kickstarter remains a vital force in the world of crowdfunding.

Kickstarter is more than just a platform; it’s a community where creativity thrives. It’s a place where ideas can be nurtured into reality, and where backers can support the projects they believe in. As we move forward, let us hope that Kickstarter continues to uphold its mission while addressing the challenges that come with scaling such an influential platform.