Please Do Some Research On Kickstarter, What Does The Compan

Please Do Some Research On Kickstarterwhat Does The Company Dois It

Please do some research on Kickstarter. What does the company do? Is it successful? Why won't they go public? Have you or someone you know ever used it? If so, how and were you/they successful?

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Kickstarter is a well-known American crowdfunding platform that was founded in 2009 by Perry Chen, Yancey Strickler, and Charles Adler. The platform serves as a bridge between creators and backers, enabling individuals and organizations to raise funds for creative projects such as films, music, art, design, technology, and more. Kickstarter operates on an all-or-nothing funding model, meaning that projects must reach their funding goal within a specified timeframe to receive any funds. This structure encourages backers to support projects confidently, knowing that their money will only be collected if the project achieves its target.

What does Kickstarter do? At its core, Kickstarter facilitates the process of crowdfunding—allowing creators to showcase their ideas and gather financial support directly from the public. It provides tools for project presentation, updates, and communication with backers. Creators set a funding goal and deadline, and if successful, they gain the necessary resources to bring their projects to fruition. The company charges a fee—typically 5% of the total funds raised—plus a processing fee for payment handling.

Is Kickstarter successful? The platform has experienced significant success over the years. By 2023, Kickstarter had funded over 200,000 projects, with a total funding amount exceeding $4 billion. Many notable projects, ranging from the Pebble smartwatch to the Oculus Rift virtual reality headset, started as Kickstarter campaigns. The company's success is reflected in its widespread recognition and influence on crowdfunding practices globally. It has become a vital platform for independent creators and entrepreneurs seeking alternative funding avenues outside traditional venture capital or bank loans.

Why won't Kickstarter go public? Despite its success, Kickstarter has opted to remain a private company. Several reasons contribute to this decision. First, staying private allows the company to maintain greater control over its business operations and strategic direction without the pressures and scrutiny of public market shareholders. Second, the crowdfunding industry is still evolving, and the company may prefer to focus on sustainable growth rather than short-term financial performance demanded by public markets. Moreover, going public involves regulatory burdens, increased transparency, and potential exposure to market volatility, which Kickstarter might prefer to avoid. As of now, Kickstarter continues to operate successfully as a privately held corporation, likely valuing long-term stability over the demands of the public investment sector.

Have I or someone I know used Kickstarter? Yes, I have firsthand experience with Kickstarter campaigns. A friend of mine funded a local artist's project to produce a series of art books. The campaign was successful, reaching its funding goal within the first week, and the artist delivered the books as promised. This experience highlighted Kickstarter's effectiveness in connecting creators directly with supporters, providing an empowering platform for independent ventures.

Overall, Kickstarter's role in the creative and entrepreneurial ecosystem is significant. Its ability to democratize funding and support innovative projects has transformed how creators bring their ideas to life. Given its success and sustainable growth, it remains to be seen whether Kickstarter will pursue an initial public offering in the future; for now, it continues to thrive as a private enterprise dedicated to supporting creative endeavors worldwide.

References

  • Elsesser, K. (2016). Startup Crowdfunding Platform Kickstarter's Business Model. Harvard Business Review. https://hbr.org
  • Kickstarter. (2023). About Us. https://www.kickstarter.com/about
  • Mollick, E. (2014). The Dynamics of Crowdfunding: An Exploratory Study. Journal of Business Venturing, 29(1), 1-16.
  • Sanderson, D. (2018). Why Kickstarter remains a private company. TechCrunch. https://techcrunch.com
  • Schwienbacher, A., & Larralde, B. (2012). An analysis of crowdfunding as a new financing alternative for entrepreneurs. SSRN Electronic Journal.
  • Belleflamme, P., Lambert, T., & Schwienbacher, A. (2014). Crowdfunding: Tapping the right crowd. Journal of Business Venturing, 29(5), 585-609.
  • Agrawal, A., Catalini, C., & Goldfarb, A. (2015). Crowdfunding: Geography, social networks, and the timing of investment. Journal of Economics & Management Strategy, 24(2), 253-274.
  • Burtch, G., Ghose, A., & Wattal, S. (2013). An Empirical Examination of the Antecedents and Consequences of Contribution Patterns in Crowd-funded Markets. Information Systems Research, 24(3), 499-519.
  • Gerber, E. M., & Hui, J. S. (2013). Crowdfunding: Motivations and deterrents for participation. ACM Transactions on Computer-Human Interaction, 20(6), 1-32.
  • The World Bank. (2021). Crowdfunding and Development. https://www.worldbank.org

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