![]() On the flip side, unsuccessful projects (which typically have larger goals) don’t get very far: 2 out of 10 fail to raise a single penny, and another 6 out of 10 can’t crack 20% of their goal amount. In truth, the vast majority of successful projects - some 67% -raise less than $10k. Thanks to the occasional viral product we read about in the news, like the Pebble watch or Exploding Kittens, we’ve developed the idea that Kickstarter routinely breeds multi-million dollar mega-hits. ![]() In every category across the board, successful projects have far lower average goals.īut let’s take a closer look at how much the successful projects - those green dots above - actually raise. ![]() The average goal among successful projects is $6.1K, compared to $13.7k for unsuccessful projects. Overall, the average successful project has a goal that is nearly 50% lower than the average unsuccessful project. ![]() So, we turned to a wonderful analysis put together by Adebola Lamidi of the ‘Towards Data Science’ blog. To better understand why tech projects are less likely to succeed on Kickstarter, we wanted to get a sense for how much money creators typically ask for (i.e. The “all-or-nothing” nature of Kickstarter (only being permitted to keep funds if you meet the goal) seems to be a bit prohibitive for projects that require larger budgets (e.g. Zachary Crockett / The Hustleįour categories - theater (60%), comics (57%), music (50%), and art (42%) - far outpace the average success rate, while tech (20%) lags far behind it. Tech and design (which frequently overlap, as many tech projects are categorized under “product design”) make up 17%, and games clock in at 10%.Īmong all projects, about 36.6% succeed in meeting their goal, and 63% fail. This makes sense: Kickstarter was founded by a trio of Burning Man enthusiasts as a way for creative types and artists to raise money. Since its inception, the site has hosted 433k projects Here’s a look at how these projects break down by category: Zachary Crockett / The HustleĪ major chunk of Kickstarter projects (40%) are films, music projects, and books. Kickstarter is an “all-or-nothing” platform, which means that if a creator only keeps the money if her goal is successfully met. Launched in 2009, it aims to ‘democratize’ fundraising: Instead of getting a loan from a bank or groveling for VC dollars, a creator can post her “project” (a tech product, book, film, etc.) to the platform, set a monetary goal, and raise money from the general public (“backers”) to pursue it. While there are many crowdfunding platforms for aspiring self-starters, Kickstarter is the largest, most popular, and longest-standing. (A warning to the data-wary: Brace yourself for lots of charts.) The big picture To answer these questions (and more), we analyzed publicly available Kickstarter data from 2009 to 2019. What exactly is the success rate on such platforms? Which types of products are the most successful? Which are the least successful? And how much money, on average, do creators raise? But this strategy won’t work out for everyone. Here, they’ll vie to bypass traditional fundraising models, collect cash directly from the general public, and bring their products to market as autonomous operators. This year, hopeful entrepreneurs will list thousands of projects - books, films, drones, watches, board games, smart toothbrushes - on Kickstarter.
0 Comments
Leave a Reply. |