Monday, August 11, 2014

Crowdfunding site Kickstarter is Entrepreneur Central

I have been hearing the buzz word crowdfunding for a while now, but I didn't witness it first hand until recently. Crowdfunding is essentially a way to generate funding for a project utilizing the internet. One of the more popular crowdfunding sites that I just started using is Kickstarter.

A few days ago, a friend of mine posted a link on his Facebook saying that his little cousin was trying to raise money for a youth t-shirt fishing brand. I thought that was interesting and I like to support fellow entrepreneurs, so I clicked on the link. I wound up on Kickstarter's website and watched a 3 minute video from this cute kid telling me all about what he was trying to do. He sold me! So I made a small donation for his project and investigated this Kickstarter thing a little further.
Kickstarter company logo
What I found on their website was really intriguing. First off, Kickstarter is a place for funding music, games, art, design, and technology. The creators of these projects keep 100% ownership and the backers are normally given a "thank you," physical product, or some other incentive depending on how much
money they pledge. These projects never get off the ground (aka get any of the $) unless they meet their funding goal 100%. Funding goals seem to vary anywhere from $1000 to $1 million. The key is you have to have a great idea and present it really well through videos and social media.

Anyone heard of Oculus Rift? They are a virtual reality video game console maker that raised $2.4 million on Kickstarter in September of 2012. Facebook went on to buy them for $2 billion. Another funding success story was the Pebble Smartphone watch, which raised over $10 million in 2012. There are many other big time projects that came out of Kickstarter and it is truly impressive.

My advice to all you entrepreneurs and creative geniuses. If you can't find the funding, get your idea on Kickstarter, you never know what could happen!

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