Let me introduce you to Kickstarter, the venture capital site for creative projects. Yes, Virginia, there is a Santa Claus. www.kickstarter.com
Kickstarter says it is “a funding platform for creative projects. Everything from films, games, and music to art, design, and technology. Kickstarter is full of ambitious, innovative, and imaginative projects that are brought to life through the direct support of others.
Since our launch on April 28, 2009, over $350 million has been pledged by more than 2.5 million people, funding more than 30,000 creative projects.”
How does Kickstarter work?
Thousands of creative projects are funding on Kickstarter at any given moment. Each project is independently created and crafted by the person behind it. The filmmakers, musicians, artists, and designers you see on Kickstarter have complete control and responsibility over their projects. They spend weeks building their project pages, shooting their videos, and brainstorming what rewards to offer backers. When they’re ready, creators launch their project and share it with their community.
Every project creator sets their project’s funding goal and deadline. If people like the project, they can pledge money to make it happen. If the project succeeds in reaching its funding goal, all backers’ credit cards are charged when time expires. If the project falls short, no one is charged. Funding on Kickstarter is all-or-nothing.
To date, an incredible 44% of projects have reached their funding goals.
Can Kickstarter be used to fund anything?
We allow creative projects in the worlds of Art, Comics, Dance, Design, Fashion, Film, Food, Games, Music, Photography, Publishing, Technology, and Theater.
Everything on Kickstarter must be a project. A project has a clear goal, like making an album, a book, or a work of art. A project will eventually be completed, and something will be produced by it.
Do backers get ownership or equity in the projects they fund?
No. Project creators keep 100% ownership of their work. Kickstarter cannot be used to offer financial returns or equity, or to solicit loans.
Some projects that are funded on Kickstarter may go on to make money, but backers are supporting projects to help them come to life, not financially profit.
What are the fees?
If a project is successfully funded, Kickstarter applies a 5% fee to the funds collected.
In the US, pledges will be processed by Amazon Payments, while in the UK, pledges will be processed securely through a third-party payments processor. These payment processing fees work out to roughly 3-5%. View the US and UK fee breakdowns.
Who is Kickstarter?
We’re 46 people based in a tenement building in New York City’s Lower East Side. We spend our time making the site better, answering questions from backers and creators, and finding great new projects to share with you. Every day is an adventure — we get to experience projects as they happen! Say hello or come work with us!
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