The fact that there are multiple Kickstarter guys is the answer. The platform is managed by a group of committed experts that put in a lot of effort to make sure that projects are funded and backers are satisfied. Perry Chen, one of the platform’s co-founders, is the one individual who has come to represent Kickstarter.
Chen struggled to raise money for a music festival in New Orleans, which gave him the concept for Kickstarter. He came to the conclusion that a platform was required so that people could fund their creative endeavors without having to rely on conventional financial sources. Since then, Chen has resigned from his position as CEO of Kickstarter, but he is still actively associated with the website as a board member. Do You Pay Back Crowdfunding?
One advantage of crowdfunding is that it enables individuals to seek capital without incurring debt or ceding control of their enterprises. Supporters, however, are not making investments in the projects they fund. Instead, consumers are giving money in return for benefits like a thank-you letter from the inventor or early access to the product.
In some forms of crowdfunding, including equity crowdfunding, backers actually turn into investors and acquire a stake in the initiative. In these situations, if the project is successful, the creator would have to reimburse the investors.
There are various forms of crowdfunding, and each has its own rules and guidelines. The three most prevalent forms of crowdfunding are reward-based, equity-based, and donation-based.
The most common kind of crowdsourcing is reward-based, and this is what Kickstarter and other sites excel at. Backers donate money in exchange for benefits like exclusive early access to the project or a limited edition version.
When backers participate in equity crowdfunding, they turn into investors and get a stake in the project. Compared to reward-based crowdfunding, this form of crowdsourcing is more strictly controlled. When people donate money to a cause or charity, it is referred to as donation-based crowdfunding. There is no expectation of earning a reward or return on investment, unlike reward-based crowdfunding.
There are risks associated with crowdfunding, but it may be a terrific method to generate money for creative initiatives. The project’s failure, which would leave backers with nothing to show for their contributions, is one of the biggest hazards. Additionally, creators must be aware of the dangers associated with crowdfunding. They might have to complete a lot more orders if their project is a success, which can be difficult and time-consuming.
Crowdfunding also carries the danger of fraud. Utilizing crowdfunding websites, some entrepreneurs may con people out of their money. Before donating to a project, backers should always do their research and only work with artists they are confident in.
Both Kickstarter and GoFundMe are sites for crowdsourcing, although they have different uses. GoFundMe is more directed towards private reasons like disaster assistance, medical expenditures, and educational costs, whereas Kickstarter is more focused on creative projects like movies, music albums, and video games.
The fact that Kickstarter has an all-or-nothing financing strategy, requiring creators to reach their funding goal in order to earn any money, is another distinction between the two sites. On the other side, GoFundMe lets creators keep any funds they raise, even if they fall short of their financial target.
In the world of crowdfunding, Kickstarter has established itself as a household name, but it’s vital to keep in mind that there are other Kickstarters. A group of devoted experts who are committed to seeing that projects are funded and backers are satisfied launched the platform. There are risks associated with crowdfunding, but it may be a terrific method to generate money for creative initiatives. Before donating to a project, backers should always do their research and only work with artists they are confident in.