Kickstarter is a Brooklyn, New York-based American public profit company that operates a creativity-focused global crowdfunding site. "The stated goal of the organization is to "help bring innovative ideas to life". Kickstarter has earned more than $4.6 billion in donations from 17.2 million donors to finance 445,000 initiatives as of December 2019, such as films, music, stage plays, comics, journalism, computer games, technology, publishing, and food-related projects. In return for their pledges, people who endorse Kickstarter projects are given meaningful benefits or experiences.
Kickstarter is one of a range of public money-gathering crowdfunding sites that circumvent conventional investing avenues. A timeline and a minimum fundraising target are selected by project developers. No funds are collected if the target is not reached by the deadline (a kind of assurance contract). The kickstarter platform is available to supporters from all over the globe and to developers from many countries, including the United States, the United Kingdom, Canada, Australia, New Zealand, the Netherlands, Denmark, Ireland, Norway, Spain, France, Germany, Austria, Italy, Luxembourg, Switzerland and Mexico.
In one of 13 categories and 36 subcategories, designers categorize their designs. They are: painting, comics, dance, architecture, fashion, video and film, food, gaming, music, photography, publishing, theatre and technology. Movie & Video and Music are the main groups and have earned the most revenue from these categories. Along with sports, these groups account for over half the money earned. Out of every $10 spent on Kickstarter, computer games and board games alone account for over $2.
Crowdfunding, by collecting small sums of funds from a vast number of users, usually over the Internet, is the method of financing a project or company. Crowdfunding is a method of alternative financing and crowdsourcing. About US$34 billion was generated by crowdfunding worldwide in 2015. The term crowdfunding applies to Internet-mediated registries, while related ideas may also be implemented via mail-order subscriptions, benefit activities, and other ways.
With many roots, crowdfunding has a long tradition. For decades, books have been crowdfunded: writers and publishers will promote book ventures in prenumeration or subscription schemes. If enough subscribers indicated their willingness to purchase the book after it was released, the book would be released and published. The subscription business model is not exactly crowdfunding, because only the arrival of the commodity starts with the actual flow of capital. However, the list of subscribers has the potential to establish the requisite trust among investors that is required in order to risk publishing.
The contributions of the people in the crowd cause the process of crowdfunding and affect the final valuation of the process offers or effects. Each individual serves as the offering agent, choosing and supporting the projects they believe in. Often, they play a donor position directed towards providing assistance for social programs. They become partners in some situations and contribute to the production and growth of the offering. Individuals disseminate knowledge in their online networks regarding initiatives they endorse, attracting more support (promoters).