Kickstarter has revolutionized the way entrepreneurs and startups raise capital for their projects. It is a crowdfunding platform that allows entrepreneurs to raise funds by pre-selling their products to backers around the world. But what exactly is Kickstarter, and how does it work?
In a recent video from the Launch and Scale channel, the founder breaks down exactly what Kickstarter is and how entrepreneurs can use it to their advantage. Here are some of the key takeaways:
What is Kickstarter?
Kickstarter is the world’s largest crowdfunding platform. It allows entrepreneurs to raise funds for their projects by pre-selling their products to backers around the world. Kickstarter is a rewards-based platform, meaning that backers receive rewards or incentives for their contributions, but do not receive any ownership or equity in the company.
Why use Kickstarter?
Kickstarter is a powerful tool for entrepreneurs looking to launch and scale their businesses. By using the platform to raise funds, entrepreneurs can bring their products to market without taking on expensive loans or giving up equity. Kickstarter can also be a powerful tool for market validation and building buzz around a new product.
How does Kickstarter work?
When launching a campaign on Kickstarter, entrepreneurs have a limited window of time to raise awareness and get pledges from backers. Campaigns typically last between 30-60 days, and during this time, entrepreneurs must work hard to market their products and build momentum.
Backers who contribute to a Kickstarter campaign receive rewards or incentives for their contributions. These rewards can vary depending on the product but can include early access to the product, discounts, or exclusive merchandise.
When the campaign ends, entrepreneurs take the money they have raised and use it to manufacture and deliver their products to backers. It is important to note that entrepreneurs must deliver their products within a reasonable time frame, usually within six months.
In conclusion, Kickstarter is a powerful tool for entrepreneurs looking to raise funds and bring their products to market. It is a rewards-based crowdfunding platform that allows entrepreneurs to pre-sell their products to backers around the world. By using Kickstarter, entrepreneurs can raise funds without giving up equity or taking on expensive loans, and can also get market validation for their products. With the right strategy and hard work, entrepreneurs can use Kickstarter to launch and scale their businesses.