The Problem With Kickstarter

Kickstarter What is Kickstarter?Kickstarter helped pioneer crowdfunding for creative projects. It has been enormously successful. The Kickstarter model is to set a fundraising goal. If the project meets its goal, the money is transferred to the creators to fund the development of the project. Kickstarter collects a 5 percent fee, the creator gets funding, and the backers get the satisfaction of sponsoring a new idea.

For creative projects this model works well. As long as the creator is genuine, you can expect that they’ll deliver something. An aspiring director is probably going to make a film. Sure, it might be bad. But that’s the only risk you take.

Hardware projects are different. Hardware is hard. Things blow up.

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