Crowdfunding platform Kickstarter has helped many entrepreneurs and start-ups to raise funds and has turned into a reliable financing option.Kickstarter has raised $2.1 billion for 270,000 projects since 2009. Investors fund in the projects of their choice and they are charged only if the project reaches its target amount.Every project will pitch in with target amount.When the project is successful; the investors either get their money back as in the case ofdebt or a share in the company. The number of successful projects are 77,000 and 128,000 have been unsuccessful.Certain projects are highly successful like pebble watch and others are blistering failures like smarty ring.What makes a project successful depends on how it is pitched and how many people are apepaled by the idea. In Kickstarter a total of 36.6% start-ups get funded completely. The success of a project depends upon the category it belongs to, dance and indie rock music are the two categories which have a high percentage of projects that get fully funded.Pitching the idea in a relevant category and optimizing the sub categories for increased attention of investors is essential.
Social media campaign has a significant effect on crowdfunding campaigns.Those campaigns which connect and express themselves well on Facebook, twitter etc have better chances of reaching their goal. However the least successful projects have been those of tech start-ups like mobile applications and websites.This is because of the high level of competition in this category and availability of a huge number of apps and websites at present.
The country with high share of successful projects (39%) and high amounts of investment is US ($1.2 billion) followed by UK.